Last Updated On 1 September 2024, 9:24 AM EDT (Toronto Time)

Workers in app-based ride-hailing and food-delivery services across British Columbia are about to see significant improvements in their working conditions, thanks to new regulations that will come into effect on September 3.

These changes are set to provide fundamental employment standards and protections for gig workers, including a substantial increase in the minimum wage.

Minimum Wage Increase for Gig Workers

Under the new guidelines, the minimum wage for ride-hailing and food-delivery workers will be set at 120% of B.C.’s current minimum wage.

With the provincial minimum wage currently at $17.40 per hour, this means that gig workers will soon earn a minimum of $20.88 per hour.

This wage applies to workers engaged in tasks for platforms like Uber Eats, Instacart, SkipTheDishes, Lyft, and Uber.

This minimum wage is calculated based on “engaged time”—the time from when a worker accepts an assignment to its completion.

Time spent waiting between assignments is not included in this calculation, which is why the 20% premium has been added.

Platform companies will be required to top up workers’ pay if their earnings do not meet the minimum wage standard during a pay period.

Additional Compensation and Benefits

Beyond the wage increase, the new regulations also address compensation for the expenses gig workers incur while using their personal vehicles for work.

Ride-hailing workers will receive $0.45 per kilometre, while delivery workers will be compensated $0.35 per kilometre.

These rates are designed to cover the costs of operating a vehicle in B.C., with higher rates for ride-hailing due to the legal requirement that these vehicles be less than 10 years old.

Moreover, the regulations introduce protections for workers’ tips, prohibiting platform companies from withholding or making deductions from them.

Transparency and Worker Rights

The new rules also emphasize transparency, ensuring that when platform companies offer an assignment to a worker, they must disclose the estimated earnings for completing the task.

Additionally, workers will receive detailed wage statements every pay period to verify their pay.

For the first time, gig workers will also have destination transparency. Platform companies must provide all pickup and delivery locations within 300 meters before a worker accepts an assignment.

Once accepted, the final destination must also be disclosed, allowing workers to evaluate the safety and desirability of the job.

Worker Protections and Compensation Coverage

In terms of job security, the new regulations require platform companies to inform workers in writing of the reasons for any suspension or termination.

Companies can no longer suspend workers indefinitely and must either reinstate them or terminate their accounts within 14 days.

Workers who are terminated without just cause are entitled to written notice or compensation for the length of service.

Lastly, the regulations ensure that workers’ compensation coverage from WorkSafeBC will extend to ride-hailing and delivery workers.

This means workers will be eligible for compensation benefits, including vocational rehabilitation services, for any work-related injuries.

How Big Is the Ride-Hailing and Food-Delivery Industry?

The app-based gig economy in British Columbia is substantial, particularly in the ride-hailing and food-delivery sectors.

Workers who transport food or other goods via apps that connect consumer orders with delivery couriers are classified as app-based food-delivery workers.

Government estimates suggest that there are currently around 11,000 ride-hailing drivers and 27,000 food-delivery workers actively operating in the province.

British Columbia is home to 21 authorized ride-hailing companies, including global giants like Uber and Lyft, as well as locally owned businesses such as Coastal Rides and Whistle.

This thriving industry plays a crucial role in the province’s economy, making the upcoming regulatory changes even more impactful for a large number of workers.

These changes mark a significant step forward for gig workers in British Columbia, offering them increased financial stability, transparency, and protection.

As these regulations come into force on September 3, they are expected to set a new standard for app-based gig work, potentially influencing similar changes in other regions.

Satinder Bains

Satinder brings expertise, knowledge, and experience related to internal work flows at IRCC. She worked at Canadian Consulate in Chandigarh before moving to Canada. Her articles on “Chinook – An internal IRCC tool used to bulk process temporary applications” was one of the notable work on our news website