New Ontario gig worker law coming into effect and here are the details

New legislation is about to take effect, granting more rights to rideshare, food delivery, and other gig workers in Ontario who operate through digital platforms such as Uber Eats, Lyft, and Instacart.

The new Digital Platform Workers' Rights Act, which was tacked on to the Working for Workers Act introduced in 2022, will, most notably, require employers to provide greater transparency regarding a respective position's duties and pay, and to offer at least standard minimum wage via a regular pay cycle, regardless of whether a worker is technically an employee by legal definition.

There are also new provisions against withholding earned tips or booting a worker from a given employment platform (e.g., Uber) without a written explanation and due notice. 

Companies found to be in violation of the new rules could face fines ranging from $15,000 to $500,000 for corporations, depending on the severity and number of offences.

It comes into effect starting July 1, 2025, and is a huge win for the tens of thousands of people in the city who earn their living through these apps.

Last year, some rideshare drivers and food couriers went on strike to advocate for better working conditions, arguing that it is not uncommon for those in these jobs to earn less than the minimum wage mandated by the Province of Ontario. (It is worth noting that some of the research cited had estimated operating expenses deducted from actual wages to calculate what was considered final pay).

The subject is especially pertinent given the surge of residents turning to the gig economy since COVID — so many that some complain the market has become oversaturated, with more than 80,429 active Uber and Lyft drivers as of December 2024, leading some on City Council to urge for a cap on such licences.

In response to the new law, a spokesperson for Uber in Canada told blogTO that the company "supports government policies that protect the flexibility and independence of app-based work while offering tailored benefits and protections," and has been advocating for years "for provincial governments across Canada to implement reforms that do just that. "