There are distinct differences between employees and self-employed workers in Canada.
Employees work for an employer and are under an Employment Contract. They typically have set hours, receive benefits such as sick pay and holiday pay, and are subject to taxes and national insurance contributions.
On the other hand, self-employed contractors are individuals who work independently. They sign an Independent Contractor Agreement or Service Agreement instead of an Employment Contract. Typically, self-employed contractors have more control over their work schedule and are responsible for their tax contributions. Generally, they are not entitled to receive benefits.
The distinction between employees and self-employed contractors is important for determining legal and tax obligations, so employers must ensure they only create Employment Contracts with employees.