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Hiring freeze at overseas operated business

Expert: Daniel Lublin

Debbie asked:

With a company's hiring freeze, what do I do to get set up as a contract worker, prior to be hired as a salaried employee? What are my Options/Choices?

In Edmonton, Alberta, because of a hiring freeze in place with this company's head office (Vienna, Austria), the Edmonton office used a placement agency to hire me for the A/P's position. The placement contract has been fulfilled and to date (April 4/09) they are still paying the agency for me.

Until the hiring freeze is lifted, the Edmonton office has asked if I would stay on, being paid as contract worker. Getting a GST number, invoicing my hours weekly. To do so, what and how is required of me to set up as a contract employee? Do I set my hourly wage? Once hired as salaried staff, will this hourly wage be active or will it be negotiated? Any assistance on this you can offer me would be ever so greatly appreciated.

Daniel Lublin answered:

Generally, you need a GST number and insurance, depending on the industry you are contracting for. You will also be required to remit your own taxes so I suggest you get a good bookkeeper. Your hourly rate is something you can negotiate.

If this arrangement will later change to that of employer - employee, it will be left for you to renegotiate a new contract of employment. Your salary and other benefits will be negotiable as well.

About the author

Daniel Lublin is the managing partner of Whitten & Lublin LLP, an employment law firm. His practice focuses on representing employees and employers in dismissal related matters. Daniel can be reached at

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