Landmark Legislation Promises Fair Pay, Transparency, and Job Security for Gig Workers
Starting July 1, 2025, Ontario will implement sweeping new protections for gig economy workers under the Digital Platform Workers’ Rights Act, marking a major shift in how app-based labor is regulated. This new law—an extension of the Working for Workers Act introduced in 2022—specifically targets the working conditions of people employed through platforms such as Uber, Lyft, Instacart, and Uber Eats.
The move is being widely celebrated by gig workers, many of whom have long advocated for better pay, more consistent working conditions, and increased transparency from tech companies.
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Minimum Wage Protections for Gig Workers
One of the most significant provisions of the Act is the guarantee that gig workers will now earn at least the provincial minimum wage, regardless of whether they are legally classified as employees. This addresses a long-standing issue in the gig economy, where workers are often considered “independent contractors” and therefore not entitled to standard labor protections.
These workers will also be paid on a regular pay cycle, offering more financial predictability in a sector historically plagued by inconsistent payouts.
More Transparency About Pay and Job Duties
Another key change is the requirement that companies clearly disclose job duties and expected earnings before workers accept tasks. This aims to reduce cases where workers discover too late that a job pays far less—or demands much more—than initially expected.
Protections for Tips and Against Sudden Deactivation
In addition to wage guarantees, the new law prohibits companies from withholding earned tips. It also protects workers from being removed or “deactivated” from platforms without a proper explanation and due notice.
This part of the legislation is particularly important in a sector where accounts can be suspended or terminated without warning, leaving workers with no income and little recourse.
Hefty Fines for Non-Compliance
Corporations found in violation of the new regulations could face fines ranging from $15,000 to $500,000, depending on the severity and frequency of infractions. This is designed to ensure companies take the new standards seriously and provide a meaningful deterrent against exploitation.
Why This Law Matters: Growing Gig Workforce Faces Unstable Conditions
The new legislation follows years of growing frustration among app-based workers. In 2024, some food couriers and rideshare drivers went on strike to demand fair pay, alleging that many were earning less than Ontario’s minimum wage after factoring in fuel, maintenance, and other operational costs.
The need for reform has become more pressing due to the explosive growth in the gig economy. Since the pandemic, more Ontarians have turned to app-based work as a primary or supplementary income source. As of December 2024, there were more than 80,429 active Uber and Lyft drivers in Ontario alone. Some City Council members have even called for a cap on these licenses, citing market saturation.
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Uber Canada Responds to the Legislation
In response to the new legislation, a spokesperson for Uber Canada said the company supports reforms that “protect the flexibility and independence of app-based work while offering tailored benefits and protections.” The company has reportedly been advocating for similar measures across various provinces.
A New Chapter for Ontario’s Gig Economy
As the July 1 implementation date approaches, the law represents a turning point for thousands of gig workers across Ontario. Whether it’s a part-time delivery job or a full-time rideshare gig, those working through apps will finally have access to some of the basic rights long afforded to traditional employees—a major win for labor fairness in a rapidly evolving employment landscape.