Toronto Employment and Labour Law Blog: Employment Relationship - A Revolving Door

In the last 30 years, even permanent employment has become impermanent because the employment relationship has become a revolving door. As a result, a number of industries, especially information technology, have adopted a more flexible approach to employment. People are hired on contract, on a project-by-project basis. Every new hire knows up front the terms of their employment so when the project comes to an end they will either be contracted to another project or will move on. Notice of that decision is built into the contract to eliminate ugly surprises. Each employee’s commitment is to the project and its successful completion and nothing more. In this way, corporate loyalty cannot be part of contract-based, project-oriented employment.

This development transforms the concept of employment from that of a static employee commitment to a more open relationship that relies on negotiation and renegotiation of the terms of engagement. Consequently, both parties remain flexible in terms of hours spent, location of work, and the nature of the employee’s connection to the contracting company or organization. Expectations become more realistic since they are no longer based on a sense of entitlement or permanence on the part of the employee, nor are they anchored in unrealistic undertakings to provide long-term stability and continuity by employers. Job loss is no longer a traumatic experience, but a transitional period during which individuals move from one project to another and from one contracting agency to another.

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