Your friend's employer's statement is not correct. I assume that you friend is receiving her income from the employer as an "independent contractor" i.e. the employer is not remitting any payments to CRA for her income tax, E.I., CPP etc. If that's the case, your friend and her employer, both have exposure to pay monies and potentially penalties to CRA and other agencies (such as WSIB), if it was determined that your friend is not an "independent contractor" but an "employee". There is a common misconception in the public about who is an "employee" and who is an "independent contractor". I will write a separate post about it - please stay tuned. However, please note that it is not solely up to your friend or her employer to decide that her status be treated as an "independent contractor". The fact that she is not a full time employee (FTE) is not determinative of the issue.