If your business uses an app or digital platform to assign work—think ride-share drivers, food delivery workers, or couriers—new Ontario legislation coming into effect on July 1, 2025, will directly impact you.
The Digital Platform Workers' Rights Act, 2022 (DPWRA) [https://www.ontario.ca/laws/statute/22d07] introduces a standalone set of legal obligations for digital platform operators, even if the workers aren't technically "employees." Non-compliance can mean steep fines, legal disputes in Ontario, and serious reputational risk. Here's what you need to know.
The DPWRA outlines new rules that companies must follow when providing a digital platform for Ontario workers to choose whether or not to accept work assignments. Digital platform work includes ride sharing, delivery, courier or other prescribed services (which are not yet defined). Accountability for these new rules falls to the digital platform operator, which by legislation excludes temporary help agencies (which are governed by the Ontario Employment Standards Act), and the DPWRA is a stand-alone piece of legislation that seems to address a gap in modern working arrangements.
Modern Employment Arrangements are Challenging Traditional Definitions of 'Employee'
Advances in technology and changes in the economy over the last few years are creating innovative methods of working and earning money. To be classified as an 'employee' or 'employer' in Ontario means adhering to rigorous employment laws. But contemporary exchanges of work for money are blurring the definitions of traditional employment relationships. The DPWRA states that its purpose "is to establish certain worker rights for workers, regardless of whether those workers are employees".
Key Worker Rights Under the DPWRA
Under this new law, digital platform workers will have a variety of protections, including:
- The right to information: Workers must be
informed how pay is calculated, how tips are collected, and the
timing of pay periods and pay days.
- Post-assignment pay transparency: Within 24
hours of completing an assignment, workers must be notified of the
actual amount they'll be paid, including tips.
- Right to minimum wage: Workers must be paid at
least the general minimum wage, calculated before tips.
- Protection against deactivation: Workers
cannot be removed from the platform without at least 2 weeks'
written notice and an explanation.
- Protection against reprisals: Workers are protected from retaliation for asserting their rights under the law.
Company Obligations Under the DPWRA
Especially important for companies operating globally, the DPWRA legislates that disputes between an operator and a worker shall be resolved in Ontario. This may affect business operations and will require strategic planning to ensure all contracts and policies are compliant. Other impacts to company operations include establishing:
- Recurring pay period and pay day;
- Record keeping (records must be kept for 3 years).
Consequences of Non-Compliance with the DPWRA
The penalties for violating the DPWRA are steep:
- Individuals can face fines of up to $50,000, up to 12 months imprisonment, or both.
- Corporations can face fines up to $100,000, and up to $500,000 for repeat offences.
- For violating the right against reprisal, fines can be $2,000 per day for individuals or $4,000 per day for corporations, for each day of non-compliance.
Workers have a two-year limitation period to file complaints under the legislation.
Limitation Period
There is a two-year limitation period for workers to file their complaints.
An Opportunity for Business Planning
Having an employment lawyer as your business partner will greatly assist you and your business in navigating the implementation of this new law, as there are sure to be questions around applicability to individual businesses.
As our online world evolves and we increasingly integrate technology into the work environment, employers need to be vigilant in their efforts to comply with local laws. At SpringLaw, we simplify compliance issues and help you devote more time to your business by providing expertise targeted to your business needs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
