If one chooses to enjoy the benefits of a company, one must accept the drawbacks and cannot regain their employee status.
More and more, both employers and employees are choosing relationships that prioritize the status of consultant rather than employee.
Thus, an engineer who has developed a sophisticated system is forced to part with his invention in favor of a buyer due to lack of capital. In exchange for his invention, the engineer receives a certain amount of money and shares from the buyer's share capital.
Preferring the status of consultant, the engineer is obliged to be an employee of the buyer because only employees can become shareholders. Thus, 80% of his services are provided as a consultant and 20% as an employee.
Several times, the buyer suggests to the engineer to end his dual status and opt for employee status. The engineer, wanting to keep his tax benefits associated with his consultant status, refuses and resigns as an employee. Five years later, the buyer terminates the engineer's consulting contract and buys all of his shares.
Addressing the court, the engineer claims to be bound by an indefinite employment contract and demands a severance package. The Court of Appeal* ruled that the engineer voluntarily and without any external influence chose a status that granted him tax advantages. "Having chosen to take advantage of the benefits of a company, he must accept the disadvantages and cannot now resurrect his employee status simply because it is in his interests".
There is nothing more enjoyable than improvising as a chef and cooking up some dishes. Beware, certain foods or herbs can sometimes leave a bitter taste.
*C.A. 500-09-001674-951, 1999-05-14
