EMPLOYEE STATUS WOULD BRING CHALLENGES TO RIDE-HAILING COMPANIES
Granting drivers employee status could bring challenges to the companies they work for.
Ride-hailing services such as Uber or Lyft run their business models based on the use of independent contractors.
University of the Fraser Valley labour expert, Fiona McQuarrie, said this would be a challenge due to the rulings under the Employment Standards Act. The act states an employee is entitled to basic work standards, such as time off and other benefits.
“If the people that work for them are considered employees, they would also have to follow basic work standards set out in the Employment Standards Act.” – Fiona McQuarrie, University of the Fraser Valley labour expert
McQuarrie also added this would increase labour costs for ride-hailing companies.
The independent contractor status for drivers is cheaper for companies than the employee option, which allows them to offer a business model that makes more money.