The Government of Ontario recently proclaimed the Digital Platform Workers’ Rights Act, 2022 (the “DPWRA”) under the Working for Workers Act, 2022.
This new legislation and its associated regulation will come into effect on July 1, 2025. The DPWRA is designed to improve conditions and ensure fair treatment for workers engaged in digital platform work, also known as “gig work”, such as ride-sharing, delivery services, and courier tasks (i.e. Uber Eats or Amazon delivery personnel, Lyft or Uber drivers, etc.). Although these workers are usually classified as independent contractors rather than employees, the DPWRA introduces several important protections and standards specifically for this group.
Scope and Definitions
Under the DPWRA, “digital platform work” is defined as work provided for payment through digital platforms, including ride-sharing, food delivery, and courier services. The legislation does not apply to traditional taxi or limousine services. The term “operator” refers to any entity that facilitates digital platform work through a digital platform, such as app-based ride-share or delivery companies. Notably, temporary help agencies are excluded from this definition, as they are presently covered under the Ontario Employment Standards Act, 2000 (the “ESA”).
Worker Rights and Protections
The DPWRA establishes several fundamental rights and protections for gig workers. For one, workers will be guaranteed a minimum wage rate in accordance with the ESA, for each work assignment. This wage calculation does not include tips and gratuities. Operators must also set up regular pay periods and paydays, ensuring that all earned wages, including any tips collected, are paid on time. Unauthorized deductions or withholdings from workers’ earnings are prohibited.
Furthermore, if an operator decides to remove a worker’s access to the digital platform, they must provide a written explanation. For removals lasting 24 hours or more, the operator must give two weeks’ notice, unless the removal is due to wilful misconduct, public safety concerns, legal constraints, or other necessary reasons. In addition, operators must provide detailed written information to workers about pay calculations, the handling of tips and gratuities, performance ratings, and assignment conditions within 24 hours of granting platform access.
Workers are also protected from retaliation for exercising their rights under the DPWRA, inquiring about their rights, or participating in enforcement actions related to the Act.
Operator Responsibilities
Operators have several responsibilities under the DPWRA. They must maintain and retain comprehensive records for each worker, including personal details, access dates, and work assignments. These records must be kept for three years after the worker’s access ends and must be available for inspection by compliance officers. Operators cannot waive or contract out of the rights the DPWRA provides unless a contract or statutory provision offers greater benefits to the worker.
Disputes between workers and operators must be resolved in Ontario, and if arbitration clauses are included in agreements, they must specify that arbitration occurs within the province.
Enforcement and Compliance
The DPWRA includes rigorous enforcement provisions. The government will appoint compliance officers with the authority to investigate and inspect digital platforms to ensure adherence to the DPWRA. Officers can issue orders for payment of owed amounts, reinstatement of workers, or impose fines for non-compliance. Penalties for violations committed by corporations can be substantial, including fines up to $15,000 for a first offence and up to $50,000 for third or subsequent offences within a three-year period. For serious breaches committed by corporations, quasi-criminal fines can reach up to $100,000 or $500,000 for repeated offences, with additional daily fines up to $4,000 for ongoing non-compliance.
Additionally, a government-established complaint system will enable workers to report violations and seek remedies, complementing the enforcement powers of compliance officers.
Key Takeaways for Stakeholders
Organizations that fall under the definition of “operator” should prepare for the DPWRA by implementing compliant payroll practices, updating their record-keeping systems, and training staff on their new obligations. This proactive approach will ensure that they are ready to meet the statute’s requirements when it takes effect. Workers should also familiarize themselves with their new rights under the DPWRA to ensure they receive the protections and entitlements established by the legislation.