The relationship between an incorporated employee and the person that uses their services is one of the things evaluated to determine whether the corporation is carrying on a personal services business (PSB).

A corporation is carrying on a PSB if the incorporated employee that provides services to the person on behalf of the corporation could reasonably be considered an employee of that person if the corporation did not exist.

An employee-employer relationship between the incorporated employee and the person that received the services must be shown. Both are therefore bound by a contract of employment instead of a contract of enterprise. 

The six criteria used to determine whether an employee-employer relationship exists are the same criteria used in jurisprudence to determine a worker's status as a self-employed worker or employee (the links below lead to the Citizens section of our website).  

• subordination in the performance of work;
• financial or economic criterion;
• ownership of tools;
• integration of the tasks carried out;
• specific result of the work;
• parties' attitude regarding their relationship.

For more information, see interpretation bulletin RRQ. 1-1/R-2, Status of Workers, on the Publications du Québec website.