Getting this classification wrong is an expensive mistake in Alberta. The primary factor determining classification is control. If you dictate how, when, and where the work is done, the worker is likely an employee. Always request a WCB clearance letter from subcontractors.
The Control Test
Behavioral control, financial control, and the type of relationship determine status. If you provide the tools, set the exact hours, and train the worker, they are an employee in Alberta.
The Risks of Misclassification
If the CRA determines you have misclassified workers, you will owe massive back taxes, overtime pay, and penalties. Furthermore, unclassified employees who suffer injuries can sue directly, bypassing WCB protections.