What is the test for a contract of service where the terms of the contract are based on market conditions rather than on the duration of the service?

Canada (Federal), Canada

The following excerpt is from Dugas v. M.N.R., 2006 TCC 527 (CanLII):

Tardif J., in Thibault v. Canada, [1998] T.C.J. No. 690 (Q.L.), affirmed that genuine employment is employment remunerated according to market conditions, which contributes in a real and positive way to the advancement and development of the business paying the salary in consideration of work performed. He added that these are basically economic factors that leave little, if any, room for generosity or compassion. Charron J., in Matineau v. Canada, [2000] T.C.J. No. 270 (Q.L.), stated that any agreement or arrangement setting out terms for the payment of remuneration based not on the time or the period during which the paid work is performed but on other objectives, such as taking advantage of the Act's provisions, invalidates the contract of service.

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