For nearly two decades David Faragher travelled to farms selling seed for ProRich. He also had cattle interests of his own. His earnings arrangement relied on monthly advances against future commissions, with year end reconciliation supposed to determine whether he was overpaid or owed more. That arrangement continued for years even as the company recorded accumulating commission deficits.
Eventually ProRich withheld one of the regular advances. Faragher alleged constructive dismissal and said he had worked as an employee. The company maintained he was an independent contractor who owed substantial money under the advance agreement.
In Faragher v. ProRich Seeds (2016) Inc., 2026 ONSC 4161, the Ontario Superior Court rejected both sides' simple descriptions of the relationship. Faragher wasn't an employee in the full sense, but his economic dependence and long standing working arrangement made him a dependent contractor entitled to reasonable notice on termination. Withholding his regular advance amounted to constructive dismissal. The court set the appropriate notice period at 21 months.
That finding didn't settle the money question. ProRich had allowed deficits to build without demanding annual repayment. The court concluded that the company was prevented by estoppel from recovering older accumulated amounts. It could, however, recover certain recent deficits. After those counterclaim amounts were considered alongside the notice damages, the overall monetary result favoured the company.
The distinction is important for agricultural businesses and any organization using commissioned sales agents. Calling a worker a contractor doesn't necessarily remove an obligation to give reasonable notice. Meanwhile, an employer that consistently tolerates a departure from written payment terms may struggle to enforce those terms years later. Regular reconciliation and clear communication may matter just as much as the original contract.
It would be misleading to describe this case as the salesperson simply receiving 21 months of pay. He established a contractual entitlement to notice, but the financial outcome depended on substantial offsets and the employer's successful counterclaim.
Source: Ontario Superior Court of Justice, Faragher v. ProRich Seeds (2016) Inc., 2026 ONSC 4161, https://www.minicounsel.ca/scj/2026/4161