Canada’s Labour Program has acknowledged that the Driver Inc. business model – which involves misclassifying employees as independent contractors – is “widespread”. And it’s preparing to expand related enforcement initiatives.
Much like a recent pilot project in Ontario, the national strategy will involve outreach to promote good employment practices, increase proactive inspections, and continue enforcement activities with non-compliant carriers.
Carriers misclassify truck drivers as independent contractors to avoid or bypass labor laws. The end result denies employees access to things like vacation pay, overtime, and termination rights under the Canada Labour Code, said the bulletin distributed by provincial trucking associations.
“Employers who do not properly classify their employees may be subject to various enforcement measures, such as payment orders for any wages and other amounts owed to employees,” Employment and Social Development Canada added.
“Additionally, they may be found to have intentionally misclassified employees and be subject to further enforcement measures, such as compliance orders, administrative monetary penalties, and prosecution.”