The qualification of the contractual relationship between the syndicate and the condo manager is of paramount importance since the rules of termination are not the same, whether it is a contract for services or a contract of employment. In most cases, a person working on a regular basis for the co-ownership is deemed to be an employee governed by a "contract of employment", and not an independent contractor. Article 2085 of the Civil Code of Québec defines the "contract of employment" as a contract, verbal or written, by which a person, the employee, undertakes, for a limited time and for remuneration, to do work under the direction or control of another person, the employer.
The manager bound to a syndicate by a contract for services does not have the same relationship with his client as the one who has the status of a salaried employee. That being said, regardless of the nature of the relationship between the parties, it is advisable to specify the contract’s terms and conditions, including its obligations and its possible renewal. This will prevent misunderstandings and possible litigation.
Terminating the contractual relationship between the manager and the syndicate of co-owners requires, at all times, an evaluation of the legal and contractual parameters. A review of the various scenarios illustrating the expiration or resiliation of a contract for services.
The work of the condo manager is not governed by Law. As a general rule, it is up to the board of directors to set the guidelines of the management contract, according to the size and characteristics of the co-ownership. As for the terms and conditions of appointment and replacement of the manager, they are generally provided in the constituting act of the declaration of co-ownership.
Although there is no provision of the law requiring a written contract with the manager, it is strongly recommended that one be executed. This document is essential to the sound management of a co-ownership. It will avoid misunderstandings on the nature of the services to be rendered, as well as their financial terms and conditions of execution.
Essentially, there are two types of contractual arrangements between a syndicate of co-owners and a manager: the contract of employment and the contract for services.