The situation
The contract Brandon had been chasing for three months required a start date, and the start date was two days away. His company, a Kitchener-based dental services group that supplied equipment servicing and support to practices across Ontario, had just landed its first client in another province, a multi-unit dental franchise whose owner, Yusuf, ran several practices and wanted a dedicated technician on the ground rather than someone flying in from Ontario for every service call. The technician was ready, the contract was signed, and the one thing standing between Brandon and a deal worth a meaningful piece of the company's growth for the year was the fact that his company had never employed anyone outside Ontario and had no idea what that actually required.
Brandon's company was a mid-sized operation, revenue in the twenty-to-sixty-million-dollar range once servicing contracts across several dental groups were added together, built with a silent investor, Miriam, who held a minority stake and stayed out of day-to-day decisions but expected to be consulted on anything that changed the company's risk profile, an expectation that had never before collided with a decision that had to be made in hours rather than weeks. Brandon had run the operational side alone for years and was used to moving fast; this was the first time moving fast collided directly with a legal question he could not answer himself.
Setting up a proper corporate presence in another province, registering the company extra-provincially, establishing payroll compliant with that province's employment standards, arranging the necessary workers' compensation coverage, was not something that could realistically happen in two days. Brandon had heard of employer-of-record arrangements, where a third-party company formally employs the worker on paper while the worker actually reports to and works for Brandon's business, and it looked like the only way to hit the deadline. What he did not know was whether that arrangement actually protected his company the way he assumed it did, or whether it just moved the risk somewhere he could not see it.
He called us the same afternoon the contract's terms were confirmed, with the clock already running and Yusuf's own team, notably self-represented in the negotiation with no lawyer of their own reviewing the terms, expecting an answer within the day.
The risk we had to size
An employer-of-record arrangement can be a legitimate and fast way to employ someone in a jurisdiction where a company has no existing presence, but it shifts risk rather than eliminating it, and the shift depends entirely on how the arrangement is documented. The employer of record takes on the worker's payroll, statutory deductions, and employment standards compliance in that province, but that does not make it the worker's only employer, and Brandon's company would still be the one directing the technician's actual day-to-day work. That split creates a real question, worth taking seriously rather than assuming away: if the arrangement is not properly structured, a regulator or a court could still treat Brandon's company as a joint or true employer for some purposes, particularly around workplace safety and the practical control it exercised over the technician's work. The same joint-employer risk could also touch who bore liability if the technician were injured on the job, or what obligations applied if the arrangement ended abruptly, questions that mattered even though neither was likely to arise in the first weeks.
The first thing we needed to establish was whether the employer-of-record company Brandon had found was properly registered and actually compliant with that province's employment standards, since using a vendor that was cutting its own corners would have put the risk right back on Brandon's company regardless of what the contract between them said. We also needed to look closely at the indemnity and liability terms in the employer-of-record agreement itself, because a poorly drafted agreement can leave the client company exposed to claims from the worker, or from the employer of record itself, in ways that are not obvious until something goes wrong.
The second risk sat with Yusuf's dental group directly. Because Yusuf was negotiating without a lawyer, the service agreement his team had drafted contained gaps that would ordinarily have been caught and negotiated by opposing counsel, including a clause that could have been read as making Brandon's company responsible for supervising workplace safety on Yusuf's premises without the corresponding authority to actually control conditions there, an obligation that made little sense for a servicing contractor to carry and one Brandon had not noticed on his own read.
Sizing the risk meant answering two separate questions on a genuinely tight timeline: was the employer-of-record structure itself sound, and did the underlying service contract with Yusuf create exposure that had nothing to do with the employment question at all. Both needed resolving before the technician could start, and both needed resolving without blowing the deadline that had made the deal worth pursuing in the first place.
What we did
- Reviewed the employer-of-record vendor's registration and compliance history on an expedited basis. Within hours we confirmed the vendor was properly registered in the destination province and carried the required workers' compensation coverage, which was the threshold question; using a non-compliant vendor would have made every other protection in the arrangement meaningless, regardless of how well the contract between Brandon's company and the vendor was drafted.
- Marked up the employer-of-record agreement to strengthen the indemnity provisions. The initial draft placed more liability risk on Brandon's company than necessary for a straightforward staffing arrangement, so we negotiated indemnity language that kept employment-standards and payroll compliance risk with the vendor, where it belonged, while clarifying Brandon's company's more limited responsibility for day-to-day direction of the technician's actual work.
- Flagged the workplace safety clause in Yusuf's service agreement before signing. Because Yusuf's team was self-represented, the draft contract had not anticipated this issue, and we raised it directly and plainly with Yusuf rather than treating it adversarially, which let it be corrected quickly once explained rather than becoming a sticking point that could have derailed the deal at the last hour.
- Negotiated a clearer allocation of workplace safety responsibility directly with Yusuf. We proposed language making clear that Yusuf's dental group, which actually controlled the premises where the technician would work, retained responsibility for site conditions, while Brandon's company remained responsible for the technician's training and equipment, a division Yusuf accepted readily once it was explained as protecting both companies rather than shifting blame onto either side.
- Advised Brandon on keeping Miriam informed before the deadline hit. Given Miriam's stake and her expectation of being consulted on anything that changed the company's risk profile, we advised Brandon to send her a short written summary of the arrangement and the risks identified before signing, which took perhaps twenty minutes and avoided a governance problem sitting quietly alongside the operational one that could have surfaced awkwardly much later.
- Coordinated directly with Yusuf's operations manager to confirm onboarding logistics on the vendor's side. Because the vendor needed accurate start-date paperwork to process payroll correctly from day one, we made sure the technician's employment start date, reporting lines, and equipment arrangements were confirmed in writing before signing, avoiding a payroll or classification error in the technician's very first pay cycle.
- Finalized both agreements same-day to meet the start date. With the vendor confirmed compliant, the indemnity terms strengthened, and the safety clause corrected, we turned around final versions of both documents within the working day, allowing Brandon to sign and the technician to start exactly on schedule without any last-minute renegotiation. That fast turnaround was only possible because the substantive issues, the vendor's compliance, the indemnity gap, and the safety clause, had already been resolved in the steps before it; drafting was never the actual bottleneck once the underlying risks were understood.
- Documented a short internal protocol for future out-of-province hires. Recognizing this would not be the last time the company needed to move quickly into a new province, we put together a brief checklist covering vendor vetting, indemnity terms, and safety-clause review, so the next deadline would not require rebuilding the analysis from scratch under the same time pressure. The checklist also separated the questions that genuinely needed fresh legal review each time from the ones already answered for good.
The outcome
The technician started on the exact date the contract required, and the servicing relationship with Yusuf's dental group has continued without incident since. The employer-of-record structure has held up as intended: the vendor handles payroll and statutory compliance in the other province, Brandon's company directs the technician's work, and the indemnity terms negotiated at the outset have meant no ambiguity about who is responsible for what.
The corrected workplace safety clause in the service agreement turned out to matter sooner than expected. A minor incident at one of Yusuf's locations several months later, unrelated to the technician's own work, tested exactly the allocation of responsibility the contract had been negotiated to clarify, and the clause functioned as intended, with each company's obligations clear enough that the question never escalated into a dispute between them.
Miriam's early notification of the arrangement also paid off in a quieter way: when she later asked about the company's exposure in other provinces as part of a broader conversation about growth, Brandon had a documented answer ready rather than having to reconstruct the reasoning after the fact. The deal itself became the company's template for expanding service contracts into other provinces, something Brandon has since done twice more using the same structure and the same vetting checklist, each time without the two-day scramble that defined the first one.
Yusuf's dental group has since referred two other multi-location practices to Brandon's company, a result Brandon attributes partly to the smoothness of the original onboarding and the clarity of the contract terms, which gave Yusuf's own team confidence that Brandon's company operated professionally under pressure rather than cutting corners to hit a deadline. What began as a two-day scramble against a hard contractual deadline became, in hindsight, the moment Brandon's company built the internal capability to expand responsibly, turning a single high-stakes decision into a repeatable, lower-risk process for every hire that followed.
What you can learn from this
- An employer-of-record arrangement can let a company hire quickly in a province where it has no presence, but it only manages risk if the vendor is properly registered and compliant, and if the agreement's indemnity terms are actually negotiated rather than accepted as boilerplate.
- When the other side to a contract is self-represented, gaps in their draft are not automatically in your favour; missing terms can just as easily create unclear or misallocated obligations that surface later as a dispute nobody intended.
- Workplace safety and supervision responsibility should be explicitly allocated in any contract involving work performed on another company's premises, so that authority and responsibility for conditions on site line up with who actually controls them.
- A minority investor's expectation of being consulted on risk decisions is worth honouring even under deadline pressure; a short written summary sent before signing is far cheaper than a governance dispute raised after the fact.
- Moving fast on a time-sensitive deal and managing legal risk properly are not actually in tension if the review is scoped to the specific questions that matter; the deadline is a constraint on process, not a reason to skip the analysis.
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