Authored By: Gurveen Bains
University of Leicester
Abstract
The gig economy in Ontario has expanded rapidly, providing flexible work but also creating economic insecurity for workers. In response, Ontario introduced the Digital Platform Workers’ Rights Act (DPWRA) in 2022, which aims to extend certain labour protections to gig workers while maintaining their classification as independent contractors. The Act guarantees minimum wage for “engaged time,” ensures timely payment for workers, and establishes provisions against unauthorized wage deductions. It also introduces penalties for non-compliance by platform companies. However, the legislation has faced criticism for its limited scope. Key exclusions include the lack of paid sick leave, statutory holiday pay, and access to benefits like Employment Insurance and the Canada Pension Plan. Critics argue that the DPWRA fails to address the broader issues of worker vulnerability, leaving gig workers without full protections. While the Act represents a step toward regulating the gig economy, it remains unclear whether it offers meaningful change or merely reinforces the precarious status quo for platform workers.
Introduction
The rise of the gig economy has fundamentally reshaped the nature of work in Ontario and beyond, blurring the lines between traditional employment and independent contracting. In response to growing concerns over precarious labour conditions, Ontario has introduced the Digital Platform Workers’ Rights Act, 2022, a piece of legislation in Canada aimed at regulating digital platform work. This Act promises to extend certain labour protections to app-based workers such as Uber, Lyft, DoorDash, and SkipTheDishes drivers, while maintaining their classification as non-employees under the Employment Standards Act. As such, it raises a pivotal question: Does this legislation represent meaningful progress for gig workers, or does it fall short of transformative change? This article critically examines the scope, implications, and potential impact of the Digital Platform Workers’ Rights Act on Ontario’s gig economy landscape.
What is the Digital Platform Workers’ Rights Act?
The DPWRA is a law passed in Ontario as part of the Working for Workers Act, 2022. Although it received royal assent in April 2022, it was not brought into force until September 5, 2024, with its provisions scheduled to take effect on July 1, 2025, along with a supporting regulation. The legislation introduces a set of employment-related rights and standards for individuals who carry out services such as ride sharing, food delivery, and courier work through online platforms. (3) These protections apply broadly to all workers using digital platforms, regardless of whether they are considered employees or independent contractors under existing employment laws. The Act includes rules regarding pay standards, greater clarity around work assignments, safeguards against retaliation, and a process for resolving disputes. It also gives provincial authorities the power to monitor and enforce compliance. Overall, the Act reflects the province’s effort to adapt labour protections to the gig economy, acknowledging the growing reliance on flexible, app-based work. (2)
Key Provisions of the DPWRA
The DPWRA outlines a set of labour standards for workers who provide services through digital platforms, such as ride-share drivers and food delivery couriers. While it maintains the classification of these workers as independent contractors, the Act introduces several new rights intended to improve transparency, pay practices, and dispute resolution in the gig economy.
- Minimum Wage and Fair Compensation
Workers are guaranteed a minimum wage rate in accordance with the Employment Standards Act (ESA) for each work assignment. This wage calculation, however, does not include tips and gratuities. Operators must also establish regular pay periods and paydays, ensuring that workers receive all earned wages, including tips, on time. Unauthorized deductions or withholdings from workers’ earnings are strictly prohibited, helping to protect workers from unfair financial practices. However, it is important to note that this minimum wage applies only to engaged time, meaning workers are not compensated for the time spent waiting for job assignments. (4)
- Notice of Suspension or Deactivation
If a worker is removed from the platform or has their access restricted, companies must provide written notice and a reason for the suspension or deactivation. This is meant to ensure greater fairness and reduce arbitrary deplatforming. (4)
- Penalties for Non-Compliance
To encourage compliance, the Act includes financial penalties for violations. Corporations that breach the legislation can be fined $15,000 for a first offence, rising to $50,000 for a third or subsequent offence within a three-year period. Individuals may be fined $250 for a first offence and up to $1,000 for repeated violations. These penalties are intended to ensure that digital platforms take their obligations seriously. (1)
Potential Impact on the Gig Economy
By providing gig workers with clearer rights and protections, the Act aims to address long-standing concerns about exploitation, unpredictability, and low pay in the sector.
- Improved Job Security and Stability
The DPWRA’s provisions on minimum wage, fair compensation, and health and safety could lead to greater job security for gig workers. With a guaranteed minimum wage and the possibility of reclassification as employees, workers may experience less financial instability and more predictable working conditions. This could make gig work a more practical long-term career for many people.
- Empowerment of Gig Workers
The right to organize and engage in collective bargaining is a critical step toward empowering gig workers. The DPWRA could give workers a stronger voice in negotiating with platform companies for better wages, working conditions, and benefits. This could help address some of the power imbalances between gig workers and the large, often multinational corporations that dominate the sector.
- Increased Transparency and Fairness in Platform Management
The DPWRA could require digital platforms to provide greater transparency around their algorithms and decision-making processes, such as how work is assigned, how worker ratings are calculated, and the criteria for suspensions or deactivations. This increased transparency would help clear up the confusion that often leaves gig workers unsure about why they get certain jobs or face penalties. By exposing these practices, the Act could encourage fairer treatment and accountability on platforms, helping workers understand and possibly challenge decisions that impact their income. (5)
Challenges and Criticisms
Although the DPWRA has been promoted as a positive step forward for Ontario’s gig economy workers, it has faced significant criticism from labour advocates and worker organizations. Many argue that rather than enhancing protections, the legislation reinforces a system that keeps platform workers in a precarious and unequal position.
One of the most serious concerns is that the Act only guarantees minimum wage for the time a worker is actively engaged in a task. This means that periods spent waiting for assignments, which can constitute a significant portion of a worker’s day, are entirely unpaid. As a result, workers may end up earning well below the provincial minimum wage when considering their total working time. This contradicts the fundamental principle of minimum wage protections and fails to consider the realities of gig work.
Beyond this limited wage protection, the legislation excludes platform workers from receiving key employment benefits that are standard in traditional work arrangements. Workers are not entitled to paid sick leave, statutory holiday pay, or overtime compensation. These omissions leave gig workers, especially those with illnesses or during periods of peak demand, vulnerable to working longer hours without adequate rest or support.
Additionally, by continuing to classify platform workers as independent contractors, the Act effectively bars them from accessing critical federal and provincial safety nets. Workers are unable to make contributions to or receive support from Employment Insurance, the Canada Pension Plan, and the Workplace Safety and Insurance Board. This means that in the event of injury, job loss, or retirement, gig workers have little to no financial protection, further deepening their economic insecurity. (1)
Conclusion
The Digital Platform Workers’ Rights Act marks an important step toward addressing the challenges faced by gig workers in Ontario. While it introduces key protections like minimum wage guarantees and payment transparency, it falls short of providing comprehensive benefits or addressing the broader insecurity of platform-based work. By maintaining workers’ status as independent contractors, the Act limits their access to essential safety nets like paid sick leave and retirement contributions. Ultimately, while the DPWRA represents progress, it remains insufficient in transforming the gig economy into a more equitable and secure model for workers.
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