Jul 9, 2025
A sweeping new law aimed at protecting gig workers came into effect in Ontario on July 1, 2025. The Digital Platform Workers’ Rights Act, passed under the province’s 2022 Working for Workers Act, mandates minimum wage, pay transparency and greater job‑security even for workers classified as independent contractors.
The gig economy — including ride‑share drivers, delivery couriers and other app‑based workers — has ballooned since the pandemic. In Ontario alone, more than 80,000 drivers were active on Uber and Lyft by late 2024. These workers typically face erratic pay, shifting schedules and sudden account deactivations.
What is gig work and should it be part of your income mix?
A gig worker takes on short-term, often freelance-based tasks, sometimes through digital platforms like Uber, DoorDash or Instacart, and other times through in-person networking, community referrals or freelance job boards. Whether it’s delivering food, driving passengers, designing a logo or fixing someone’s fence, gig work covers a wide range of short-term services.
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The model offers flexibility, ideal for students, retirees or anyone juggling multiple income sources, but it also brings risk. Most gig workers cover their own costs: fuel, equipment, vehicle maintenance, insurance and self-employment taxes.
For those managing tight budgets or building a diversified income strategy, gig work can provide quick cash and schedule control. But the unpredictability and hidden expenses means it should be approached with caution, and a calculator.
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What the new law gives gig workers and what’s still missing
On paper, Ontario’s new Digital Platform Workers’ Rights Act brings long-overdue protections to a growing class of workers. The province is now requiring digital platforms to provide a baseline of rights, but many of them come with conditions that leave some gig workers questioning how much has really changed.
For starters, platforms must now pay at least Ontario’s minimum wage, which is currently about $17.20 an hour. But there’s a catch: That rate only applies while a worker is actively completing a task. Time spent waiting between orders or idling for the next ping? That’s still unpaid.
Workers must also be given more information upfront. Within 24 hours of signing on, companies are required to explain how pay is calculated, how ratings affect job access and what happens to tips. These changes are designed to lift the veil on a system many say has operated in the dark for too long.
Earnings will also become more predictable. The law requires platforms to issue payments on a regular schedule, replacing the erratic and sometimes delayed payouts that have frustrated many gig workers.
Tips, which can make up a large part of a courier or driver’s take-home pay, are also protected. Companies are no longer allowed to withhold them, unless they’re legally required to.
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Perhaps most notably, the law brings in a safeguard for workers who suddenly lose access to their accounts. Going forward, platforms must provide two weeks’ written notice before suspending a worker for more than 24 hours, except in serious cases involving misconduct or safety.
And if something goes wrong? Workers won’t have to chase resolution across borders. All disputes must now be handled within Ontario, a move that could help level the playing field when problems arise.
The Ministry of Labour says the law strikes a balance between fairness and flexibility, giving gig workers a foundation without disrupting the convenience of the platform economy. But many workers and advocates argue it still leans too heavily in favour of the companies.
Minimum wage, but only when the app says you’re working
Jennifer Scott, president of Gig Workers United, says the biggest issue is the law’s narrow definition of “working time.”
“About 40 per cent of the time that workers are working is unpaid time,” she told CBC. That includes waiting between orders or idling during low-demand periods, a common reality for couriers and drivers.
Economist Jim Stanford, director of the Centre for Future Work, has previously warned that many gig workers often earn below the minimum wage once unpaid time and operating costs are factored in.
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“After accounting for their operating costs and unpaid time … they’ll still be left with well-below-minimum wages,” he wrote for Rabble.ca.
Stanford also highlighted that without reimbursement for expenses like fuel, vehicle wear and tear, insurance, and mobile data, even seemingly fair wages may not translate into livable incomes.
Those same concerns are echoed by today’s critics of Ontario’s law. They point out what’s still missing: there’s no requirement for platforms to cover operating costs or contribute to benefits such as sick pay, workers’ compensation or insurance, which are entitlements available to some gig workers in British Columbia.
Turning side hustles into smart money moves
For anyone considering gig work as a side hustle or income buffer, here are some personal finance implications of the new law:
- Track your real earnings: Don’t just look at the gross hourly pay. Subtract fuel, repairs, data and downtime. What’s left is your actual income.
- Prepare for irregular hours: Even with pay protections, demand fluctuates. You may have good weeks and lean ones.
- Understand your tax situation: Platforms now issue T4As. You’ll need to report self-employment income and track deductions.
- Use gig work strategically: For short-term goals, like paying down debt or saving for a purchase, gig work can be useful. For long-term stability, it’s less reliable.
What’s next and what gig workers still need
Ontario’s new law is a landmark first step. But labour advocates say it still leaves gig workers vulnerable to financial precarity. They want the province to consider expanding the definition of paid time, mandating expense reimbursements and offering basic employment benefits to workers who depend on these jobs full-time.
BC has already started moving in that direction. As competition heats up between provinces, gig work could become not just a tech issue, but a labour rights and financial justice one as well.
Sources
1. CBC: New law that aims to protect Ontario gig workers falls short, critics say (July 1, 2025)
2. Rabble.ca: Don’t be fooled by Ontario’s ‘minimum wage’ for gig workers (March 2, 2022)
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
