Many dental hygienists in Ontario are misclassified as independent contractors by clinic owners. Under Ontario employment law, if the dentist controls your schedule, provides the equipment, and owns the patient files, you are likely an employee or a “dependent contractor,” entitling you to full common law severance pay upon termination.
The dental industry operates differently than a standard corporate office, but the laws protecting workers remain exactly the same. Across Ontario, from busy clinics in Mississauga to family practices in Ottawa, many clinic owners ask their dental hygienists to sign agreements labeling them as “independent contractors.” Dentists do this to save on payroll taxes, avoid paying vacation pay, and ultimately, to avoid paying severance when a hygienist is let go. However, putting the words “independent contractor” on a piece of paper does not automatically make it legally true.
When a dispute arises, Ontario courts look at the actual reality of the working relationship, not just the contract. ⚖ If you are fired or pushed out of the practice, a judge will ask: Whose equipment did you use? Who booked the patients? Did you bear any true financial risk? In the vast majority of cases, hygienists are deemed to be employees or “dependent contractors.” This legal distinction is crucial because it means you are fully protected by Ontario common law and have the right to demand a substantial severance package based on your years of service at the clinic.
Step-by-Step Process for Claiming Severance as a Hygienist
If a dentist terminates your contract unexpectedly, fighting back requires a strategic approach to prove your true employment status. 📋 Here is how most dental professionals in Ontario secure their rightful compensation.
Step 1: Gather Evidence of Workplace Control
Before making any legal threats, collect evidence showing how the clinic operated. 📂 Keep copies of your weekly schedules, office policy manuals dictating your dress code or protocols, and proof that the clinic supplied the major tools (like the dental chair, ultrasonic scalers, and sterilization equipment). This documentation is vital for proving that the dentist controlled your work environment, which is the hallmark of an employer-employee relationship.
Step 2: Do Not Sign a Release
Dentists who terminate long-term hygienists will sometimes offer a small goodwill payment (e.g., two weeks of pay) in exchange for signing a Full and Final Release. ✋ Never sign this document. If you have worked at the clinic for a decade, your true common law severance could be upwards of 10 to 12 months’ worth of income. Signing the release legally bars you from pursuing the rest of your money.
Step 3: Hire an Employment Lawyer to Draft a Demand Letter
Consult a lawyer who has experience dealing with worker misclassification in the medical and dental fields. ✉️ Your lawyer will issue a strong demand letter to the clinic owner. The letter will outline the legal test for employment, demonstrate how the clinic fails the independent contractor test, and demand a full severance package, including compensation for lost wages during the reasonable notice period.
Step 4: Escalate to the Superior Court if Necessary
Most dentists want to avoid a public lawsuit that exposes their tax and payroll practices to regulatory scrutiny. 💰 As a result, these cases frequently settle quietly. However, if the clinic owner refuses to negotiate, your lawyer will file a Statement of Claim at the Superior Court of Justice. Judges in Ontario have repeatedly ruled in favour of misclassified dental professionals.
How Much Does it Cost to Challenge a Dentist?
Fighting for your severance is made financially viable through flexible legal billing options. 💸 Here are the typical costs an Ontario hygienist can expect:
- Initial Strategy Consultation: A thorough review of your contractor agreement and work history usually costs between $350 CAD and $600 CAD.
- Contingency Fee Structures: Most lawyers will take misclassification severance cases on a contingency basis, meaning they keep 25% to 35% of the final settlement, allowing you to hire top legal talent with no upfront hourly fees.
- Hourly Billing: If you elect to pay by the hour, rates range from $400 CAD to $750 CAD depending on the lawyer’s experience.
- Court Fees: If a lawsuit must be filed, the Superior Court of Justice charges approximately $339 CAD in standard filing fees.
How Long Does the Process Take?
Because dental clinics are private businesses that fear audits, settlements can happen swiftly. ⌛ A well-drafted demand letter can often produce a negotiated financial settlement in 4 to 8 weeks. If the clinic owner is stubborn and forces the issue into formal litigation, proceeding through the Ontario court system can take 12 to 18 months.
Independent Contractor vs. Employee (Hygienist specific)
| Factor Evaluated by Courts | True Independent Contractor | Employee / Dependent Contractor |
|---|---|---|
| Control of Schedule | The hygienist sets their own hours entirely and can send a substitute to work in their place. | The clinic assigns shifts, dictates lunch breaks, and requires permission for time off. |
| Ownership of Tools | The hygienist owns all major equipment, pays for their own PPE, and rents a room. | The clinic owns the chairs, X-ray machines, and provides the basic supplies. |
| Financial Risk & Profit | The hygienist can lose money if patients do not show up, and they market themselves. | The hygienist is paid a steady hourly rate or a fixed percentage, bearing no business risk for empty chairs. |
Frequently Asked Questions (FAQ)
What if I have an incorporated business and bill the clinic?
Even if you established a personal corporation and send invoices to the clinic, an Ontario court can still pierce the corporate veil and declare you a ‘dependent contractor.’ If 100% of your income comes from one clinic and they control your work, you are still legally entitled to severance pay.
Do I get severance if the dentist retires or sells the practice?
Yes. If the clinic is sold and the new owner decides not to keep you, or offers you a contract with significantly worse terms, your employment has been terminated. The original owner is generally responsible for paying your common law severance.
Can the CRA penalize me for being misclassified?
If the Canada Revenue Agency audits the clinic and determines you were actually an employee, the heavy penalties and back-taxes generally fall on the employer. However, you may have to amend past tax returns if you aggressively deducted business expenses you were not actually entitled to.
Can I claim EI if I am let go as an independent contractor?
Normally, true independent contractors cannot get standard EI. However, if you apply and request a ruling from the CRA regarding your employment status, and they determine you were actually an employee, you can become eligible for Employment Insurance benefits retroactively.
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