APP-BASEDÂ ride-hailing and food-delivery gig workers will soon have better working conditions with new protections, including basic employment standards.
In recent years there has been significant growth of the gig economy, where income is earned outside of a traditional employment relationship. The Province is taking action to bring fairness and predictability to these types of jobs with new proposed standards as the sector continues to expand.
“The workers who appear at the touch of a button to drive us home or deliver our dinner deserve to be treated fairly,” said Harry Bains, Minister of Labour, on Thursday. “That’s why we’re taking action to address the problems that the workers themselves raised. We know how important these services are to people in B.C. and our goal is to balance the needs of workers while supporting the continuation of these services.”
Workers value the flexibility of this work, but many expressed concerns such as facing low and unpredictable wages, being cut off from the job without warning and lacking workers’ compensation coverage if injured on the job.
“Some newcomers to Canada face language barriers or other challenges that make it difficult to find a job, and app-based work can provide a quick source of income,” said Janet Routledge, Parliamentary Secretary for Labour. “We’ve been listening to gig workers all across the province during the engagement roundtables about the challenges they are facing, and these standards reflect what we have heard. All workers, regardless of where they’re from or what they do, deserve minimum employment standards and protections.”
The proposed solutions were developed after extensive engagement with app-based workers, platform companies, labour organizations, business associations, the public and others. The solutions require legislative changes that enable new regulations to be developed. The changes will come into effect after legislation is passed and new regulations are finalized.
These changes address the priority concerns that workers have raised. B.C. will be one of the first jurisdictions in Canada to address the vulnerabilities faced by these workers.
Quick Facts:
* App-based food-delivery workers include those who deliver food or other goods through an app that matches customer orders with a delivery courier.
* Government estimates there are currently about 11,000 ride-hailing drivers and 27,000 food-delivery workers in B.C.
* 21 ride-hailing companies are licensed to operate in B.C., including multi-national companies such as Uber and Lyft, and locally operated companies such as Coastal Rides and Whistle!
* There are seven food-delivery platforms operating in B.C., including Uber Eats, Instacart, SkipTheDishes, DoorDash and Fantuan.
* According to Research Co.’s study on COVID-19 Impacts Dining Behaviours Across British Columbia (February 2021), 32% of people in B.C. reported having food delivered to their homes at least once every two weeks.
Learn More:
To learn about the ministry’s app-based ride-hailing and food-delivery engagement, visit:Â https://www2.gov.bc.ca/gov/
To learn about B.C.’s employment standards, visit:Â https://www2.gov.bc.ca/gov/
BACKGROUNDER
Proposed employment standards, protections for ride-hailing, food-delivery workers
Minimum wage:
* Establish a minimum earnings standard of 120% of B.C.’s general minimum wage (currently $16.75) and apply it to engaged time.
* Engaged time begins when a worker accepts an assignment through its completion.
* Engaged time does not include the time spent waiting between assignments. This is the rationale for adding a 20% premium.
* Platform companies will top up the difference when the earnings paid in a pay period do not meet the minimum earnings standard for the engaged time worked.
* Tips are not included in the minimum earnings calculation.
Expenses:
* Establish an additional compensation standard to recognize the costs that workers incur when using a personal vehicle for work.
* The Ministry of Labour will be consulting with workers, platform companies and others to determine an appropriate compensation standard.
Tip protections:
* Prohibit platform companies from withholding tips or making deductions from tips.
Pay transparency:
* Ensure that when platform companies offer an assignment to a worker, that worker can see the earnings for completing the assignment.
* Platform companies will also be required to provide workers with wage statements every pay period so workers can ensure they are paid correctly.
Destination transparency:
* Platform companies will be required to provide all pickup and delivery locations for each assignment.
* This will allow workers to assess the desirability and safety of assignments before accepting them.
Suspensions and terminations:
* Platform companies will be required to inform a worker in writing of the reason for a suspension or deactivation of their account.
* Platform companies must also provide a review process that allows workers to present their side and supporting evidence.
* In response to a review, companies must provide a written explanation of their final decision.
* Platform companies will be required to give written notice or compensation for length of service if they want to terminate a worker’s account unless there is just cause for the termination.
Workers’ compensation coverage:
* Workers’ compensation coverage from WorkSafeBC will be extended to ride-hailing and food-delivery workers.
* Workers will be eligible for workers’ compensation benefits, including vocational rehabilitation services, for work-related injuries.
* Platform companies will be responsible for:
* registering for coverage with WorkSafeBC and paying premiums;
* following health and safety rules to keep workers safe;
* reporting injuries and diseases; and
* investigating significant incidents.
Intended legislative approach
Amendments will be made to the Employment Standards Act (ESA) and the Workers Compensation Act (WCA) to define online platform workers and to ensure that ride-hail and food-delivery workers will be considered employees, specifically for the purposes of the ESA and WCA. The protections and standards described above will then apply to all workers in the industry regardless of whether they are employees or independent contractors under any law.
To protect the flexibility that workers value and address their top priorities, alternate standards for this industry will be created within the ESA while some of the Act’s existing provisions will not apply at this time.
Standards in the following areas will not be established at this time under the ESA for ride-hailing and food-delivery workers, but government will continue to monitor these areas:
* hours of work and overtime;
* statutory holidays;
* paid leaves; and
* annual vacation.
