British Columbia has finalized regulations to provide minimum-wage measures and basic protections for app-based ride-hailing and delivery workers, marking a first in Canada.
These regulations will come into effect on Sept. 3, 2024, and will apply to workers using platforms such as Uber, Lyft, Uber Eats, SkipTheDishes, and DoorDash.
“All companies should be providing basic fairness like minimum wage for their workers,” said Harry Bains, Minister of Labour. “Everyone working hard to support their families should have basic protections so if they’re injured on the job, they won’t lose their homes. That is what we are doing with these regulations – providing fair pay and basic protections for these workers.”
The regulations result from extensive engagement with workers, platform companies, labour organizations, business associations, and the public. They aim to balance the unique challenges of gig work, addressing workers’ priorities while ensuring that app-based services remain available and affordable in the province.
“Too many workers in this industry are putting in long hours and being paid less than the minimum wage,” said Janet Routledge, Parliamentary Secretary for Labour. “At the end of a shift, after paying their vehicle expenses, these workers are barely ahead of where they started. The new protections are going to change that.”
Key provisions in the regulations address low and unpredictable pay, lack of workers’ compensation, lack of transparency, unfair deactivations and suspensions, and tip protection.
Minimum Wage and Expenses The regulations establish a minimum wage of $20.88 per hour for engaged time, which is 120% of B.C.’s general minimum wage of $17.40. Engaged time includes the period from accepting an assignment until its completion, excluding waiting times between assignments. Additionally, a vehicle allowance of $0.45 per kilometer for ride-hailing and $0.35 per kilometer for delivery assignments will be provided to compensate for vehicle expenses.
Workers’ Compensation and Transparency All ride-hailing and delivery workers will be covered through WorkSafeBC, ensuring compensation for work-related injuries. Companies must also provide transparency regarding job locations and estimated pay before acceptance, and must pay 100% of tips to the workers.
Fair Treatment in Terminations Platform companies will be required to inform workers in writing of the reasons for suspensions or terminations. In cases of termination without cause, workers must be given notice or compensation. Indefinite suspensions will no longer be allowed, with companies required to make a decision on reinstatement or termination within 14 days.
Sandeep Singh Chhina, a full-time app-based ride-hailing and delivery worker, commented on the new regulations: “Inflation is high and it’s hard to afford everyday things my family needs. The security of a minimum wage will be game-changing for me. What also stands out is the peace of mind my family and I will have in knowing that if I’m ever injured on the job, I will have workers’ compensation coverage.”
David Gutierrez, a part-time app-based delivery worker, added, “I do this work because it’s so flexible and for the extra income it provides. I’m looking forward to all of the new changes. But for me, the relief of a vehicle expense allowance covering what I’ve been paying out-of-pocket is a real weight off my shoulders.”
These regulations are seen as a starting point in addressing the challenges associated with gig work. Following their implementation, the Ministry of Labour will monitor the sector to assess if further adjustments are needed.
