The federal Ministry of Labour announced Monday that it will be investing $26.3 million over five years to investigate trucking companies that illegally misclassify drivers as independent contractors in order to avoid costs they are supposed to cover.
The practice, called “Driver Inc.”, involves companies that hire truck drivers, then tell them to self-incorporate as independent contractors. As a result, the drivers are denied their rights and entitlements under the Canada Labour Code, including paid sick leave, health and safety standards, employer contributions to Employment Insurance and the Canada Pension Plan, and workplace injury compensation.
Wages are also an issue, as companies commonly hold-back pay to these “self-employed” drivers, even though they effectively work as employees.
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