There are many challenges that come with being a self-employed individual in Canada. One of the biggest challenges is overcoming the stigma that comes with having a criminal record. A criminal record can have a significant impact on an individual’s ability to find employment, especially if they are looking for work in the self-employment sector.
This article will explore how criminal records affect self-employment in Canada and what steps individuals can take to overcome these challenges.
Types of Self Employment
There are many different types of self-employments, some of which include:
- Freelancers
- sole proprietorships
- Partnerships
- Gig workers
- Contractors
- Subcontractors
Self-Employers are Not Immune to Background Checks
Just like employees, self-employers may also face the possibility of being subjected to background checks. These checks can be conducted by potential clients, business partners, or even financial institutions.
If an individual has a criminal record, it is important to be transparent about this before entering any business relationships. These background checks make it even harder for those with criminal records to get their businesses off the ground.
Barriers Self Employers May Face
There are a number of barriers that self-employers with criminal records face. Some of these include:
Lack of Access to Funding
For many people with criminal records, finding the money to start their own business may be challenging. That’s because they’re often ineligible for loans and other forms of traditional financing.
Even if they are able to gather together the funds themselves, they may not have the credit history or collateral required to qualify for a business credit card. This can make it difficult to cover unexpected expenses or take advantage of opportunities when they arise.
Difficulty Forming Business Partnerships
Most businesses are risk-averse and may not want to associate themselves with someone who has a criminal record. As a result, self-employed workers with criminal records may have a hard time finding vendors, suppliers, or other service providers willing to work with them.
Lack of Access to Resources
Self-employers with criminal records face challenges accessing things like business licenses, bank accounts, permits, and insurance. The law may also limit their ability to work in certain industries or occupations. For example, those with convictions for sexual offences may be barred from working in occupations that involve contact with children.
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How a Record Suspension May Help
A Record Suspension (formerly known as a pardon) is a legal mechanism that can help self-employers with criminal records overcome some of the challenges they face.
A Record Suspension allows an individual to have their criminal record sealed from the public. This means that it will not show up on routine background checks, making it easier for self-employers with criminal records to form business partnerships, access funding, and find customers or clients.
To be eligible for a Record Suspension, an individual must have completed their sentence and waited a certain period of time (usually five or ten years, depending on the offence). They must also have demonstrated that they are law-abiding citizens and pose no threat to public safety.
Conclusion
If you have a criminal record and are interested in pursuing self-employment, it is important to consult with a professional to see if you are eligible for a Record Suspension. A pardon service agent will be able to advise you on the best course of action based on your individual circumstances.
Contact us today for a free consultation at 1-866-972-7366