Misclassification in the Road Transportation Industry: Awareness Kit
On this page
- What is employee misclassification
- How does employee misclassification affect you as a truck driver
- How are you protected by the Canada Labour Code (the Code)
- Have you been misclassified
- How can you report being misclassified
- How does the Labour Program deal with misclassification
- What can happen to employers who misclassify workers
- How does misclassification affect the trucking industry
- What are the key differences between employees in federally regulated workplaces and independent contractors
- Posters
- Examples of misclassification in the road transportation industry
- Video: Misclassification: Know Your Rights
- Video: Misclassification Is Illegal
What is employee misclassification
Misclassification is when an employee is wrongfully classified as an independent contractor. They are then denied rights and protections.
For example, a boss treats you like an independent contractor. But, you work fixed hours for the company and use its equipment. In the road transportation industry, this often leads to classifying truck drivers as independent contractors, when they should be employees.
Some companies misclassify employees as contractors on purpose to:
- lower hiring costs
- simplify payroll
- keep a flexible working arrangement with the misclassified worker
Whatever the reason, misclassification is illegal under the Canada Labour Code (the Code).
Misclassification is illegal even if:
- the employee agrees to it
- the worker is an independent contractor under other laws, including tax or provincial or territorial laws. They may still be classified as an employee under the Code
Since June 20, 2024 Gig workers in federally regulated industries have the same rights and protections as employees under the Code. Now, all workers paid by an employer are their employees, unless proven otherwise. Employers must prove a worker is an independent contractor. These changes will not affect legitimate independent contractors.
How does employee misclassification affect you as a truck driver
Employee misclassification can impact you in many ways. You may lose important rights and benefits as employees. These include fair pay, overtime pay, vacation pay, and safety protections under the Code.
Remember, it's against the law to misclassify an employee.
How are you protected by the Canada Labour Code (the Code)
Under Part Ⅲ of the Code, employees have the right to protections such as:
- up to 4 weeks of paid vacation per year
- 10 paid days of general holidays
- 3 paid days of personal leave
- up to 10 paid days of medical leave (sick leave) per year
- overtime pay
- help (recourse) if you are unfairly fired
Important: Your employment agreement or contract must include key details about wages, work hours, and job protections.
Under Part Ⅱ of the Code, your employer must ensure your safety at work. You can refuse work if you think it is unsafe: Right to refuse dangerous work - Canada.ca
Have you been misclassified
You might be misclassified if you notice these signs:
- not having control over your work schedule or routes
- being told to use company materials, tools, and equipment (e.g., the truck/trailer)
- being prohibited from working for other companies
- not having any risk of loss or chance for profit (e.g., the worker does not assume the costs of the work to be redone)
- being integrated into the company (e.g., the employer logo is used on your uniform, truck, and other tools)
To learn about misclassification and the employer-employee relationship, visit Determining the Employer/Employee Relationship - IPG-069 - Canada.ca
How can you report being misclassified
You can contact the Labour Program to file a complaint or send an email at edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca to report misclassification. For questions, contact the Labour Program at 1‑800‑641‑4049.
How does the Labour Program deal with misclassification
The Labour Program deals with misclassification through several measures:
- Counselling the employer and obtaining voluntary compliance whenever possible
- Investigating employee complaints and inspecting workplaces
If non-compliance is found, the Labour Program may impose:
- payment orders, including administrative fees
- compliance orders
- Administrative Monetary Penalties (AMPs)
- public naming of employers, or
- prosecution
What can happen to employers who misclassify workers
Employers who misclassify workers may own them back pay, benefits, and taxes. They may also have to pay fines between $1,000 and $12,000, or more. Employers may face other consequences. This depends on the problem's severity and if it has happened before.
To learn about employer compliance with federal labour standards, visit Employer compliance with federal labour standards - Canada.ca
How does misclassification affect the trucking industry
Misclassification harms more than the workers. It creates an unfair situation for companies that follow the rules. Misclassifying workers gives companies an unfair advantage. It harms the market and makes the industry less fair.
What are the key differences between employees in federally regulated workplaces and independent contractors
Canada's workforce has more independent contractors. They are people who do contract work to complete specific tasks. Being an independent contractor has benefits. It offers flexibility and more freedom at work. But, it can deny workers their labour rights and job protections. Employees have rights. They include the right to unionize. They have protections for health and safety, and labour standards, like minimum wage and sick leave.
As an employee, you have rights and protections under the Code. Some of the benefits of being an employee:
- 10 paid days of medical leave (sick leave)
- 3 paid days of personal leave
- vacation with pay
- overtime pay
- general holidays
- health and safety protections
- employer contributions to Employment Insurance
- employer contributions to Canada Pension Plan
- provincial or territorial workers' compensation benefits
- help for dealing with unfair termination
Independent contractors do not have these benefits.
Posters
Misclassification of employees is illegal, and there are serious consequences for employers
You could be subject to:
- Monetary penalties
- Public naming on the Government of Canada website
- Prosecution
Know your obligations under the Canada Labour Code.
Contact the Labour Program
1-800-641-4049
Arabic: سوء تصنيف العمال هو أمر مخالف للقانون، وتترتب عليه عواقب وخيمة على أصحاب العمل!
ونتيجة لذلك، قد تُفرض عليك العقوبات التالية:
- عقوبات مالية
- النشر العلني لاسم صاحب العمل على الموقع الإلكتروني للحكومة الكندية
- الملاحقة القضائية
كونوا على دراية وعلم بواجبتكم بموجب قانون العمل الكندي.
اتصلوا ببرنامج العمل على رقم الهاتف التالي:
1-800-641-4049
Canada.ca/misclassification-trucking
German:Die Fehlklassifizierung von Arbeitnehmern ist illegal und hat schwerwiegende Folgen für Arbeitgeber!
Sie könnten Folgendem unterliegen:
- Geldstrafen
- Öffentlicher Nennung auf der Website der kanadischen Regierung
- Strafverfolgung
Informieren Sie sich über Ihre Pflichten gemäß dem kanadischen Arbeitsgesetzbuch.
KONTAKTIEREN SIE DAS ARBEITSPROGRAMM: 1-800-641-4049
Canada.ca/misclassification-trucking
Hindi: कर्मचारियों का गलत वर्गीकरण करना गैरकानूनी है, और नियोक्ताओं के लिए इसके गंभीर परिणाम हैं!
आप पर निम्नलिखित लागू हो सकते हैं:
- आर्थिक दंड
- कैनेडा सरकार की वेबसाइट पर सार्वजनिक रूप से नाम दर्ज किया जाना
- फौजदारी का मुकद्दमा
कैनेडा लेबर कोड के तहत अपने दायित्वों को जानें।
लेबर प्रोग्राम से संपर्क करें: 1-800-641-4049
Canada.ca/misclassification-trucking
Polish: Błędna klasyfikacja pracowników jest niezgodna z prawem i wiąże się z poważnymi konsekwencjami dla pracodawców!
Należą do nich:
- kary pieniężne
- publiczne ujawnienie na stronie internetowej rządu Kanady
- postępowanie karne
Zapoznaj się ze swoimi obowiązkami wynikającymi z Kanadyjskiego Kodeksu Pracy.
SKONTAKTUJ SIĘ Z PROGRAMEM PRACY:
1-800-641-4049
Canada.ca/misclassification-trucking
Punjabi: ਕਰਮਚਾਰੀਆਂ ਦਾ ਗਲਤ ਵਰਗੀਕਰਨ ਕਰਨਾ ਗੈਰ-ਕਾਨੂੰਨੀ ਹੈ, ਅਤੇ ਰੁਜ਼ਗਾਰਦਾਤਾਵਾਂ ਲਈ ਇਸ ਦੇ ਗੰਭੀਰ ਨਤੀਜੇ ਹੋ ਸਕਦੇ ਹਨ!
ਤੁਹਾਡੇ ਉੱਤੇ ਇਹ ਕਾਰਵਾਈਆਂ ਹੋ ਸਕਦੀਆਂ ਹਨ:
- ਵਿੱਤੀ ਜੁਰਮਾਨੇ
- ਕੈਨੇਡਾ ਸਰਕਾਰ ਦੀ ਵੈੱਬਸਾਈਟ ਉੱਤੇ ਜਨਤਕ ਤੌਰ 'ਤੇ ਨਾਮ ਦਰਜ ਕੀਤਾ ਜਾਣਾ
- ਮੁਕੱਦਮਾ ਚਲਾਇਆ ਜਾਣਾ
ਕੈਨੇਡਾ ਲੇਬਰ ਕੋਡ ਅਧੀਨ ਆਪਣੀਆਂ ਜ਼ਿੰਮੇਵਾਰੀਆਂ ਜਾਣੋ।
ਲੇਬਰ ਪ੍ਰੋਗਰਾਮ ਨਾਲ ਸੰਪਰਕ ਕਰੋ: 1-800-641-4049
Canada.ca/misclassification-trucking
Russian: Подмена трудовых отношений с работниками незаконна и влечет серьезные последствия для работодателей!
Вам могут грозить:
- Денежные штрафы
- Публичное упоминание на сайте правительства Канады
- Привлечение к ответственности за нарушение закона
Ознакомьтесь со своими обязательствами в соответствии с Трудовым кодексом Канады.
СВЯЖИТЕСЬ С ПРОГРАММОЙ ПО ОХРАНЕ ТРУДА:
1-800-641-4049
Canada.ca/misclassification-trucking
Simplified Chinese: 将雇员错误地分类属于违法行为，雇主将面临严重后果！
您可能面临：
- 罚款
- 在加拿大政府网站上公开点名
- 刑事起诉
请了解您在《加拿大劳动法》规定下应尽的义务。
请致电劳工计划：1-800-641-4049
Canada.ca/misclassification-trucking
Spanish: Empleadores: clasificar mal a los trabajadores es ilegal… ¡y tiene consecuencias graves!
Podrían enfrentarse a:
- Multas
- Publicación de su nombre en el sitio web del Gobierno de Canadá
- Acciones legales
Conozca sus obligaciones de empleador según el Código del Trabajo de Canadá.
LAME AL PROGRAMA LABORAL:
1‑800‑641‑4049
Canada.ca/misclassification-trucking
Traditional Chinese: 將僱員錯誤地分類屬違法行為，僱主將面臨嚴重後果！
您可能面臨：
- 罰款
- 在加拿大政府網站上公開點名
- 刑事起訴
請了解您在《加拿大勞動法》規定下應盡的義務。
請致電勞工計劃：
1-800-641-4049
Canada.ca/misclassification-trucking
Urdu: ملازمین کی غلط درجہ بندی غیر قانونی ہے، اور اس کے آجران کے لیے سنگین نتائج ہو سکتے ہیں!
آپ کو درج ذیل نتائج کا سامنا کرنا پڑ سکتا ہے:
- مالی جرمانے
- حکومتِ کینیڈا کی ویب سائٹ پر آپ کا نام عوامی طور پر شائع کیا جا سکتا ہے
- قانونی کارروائی
کینیڈا لیبر کوڈ کے تحت اپنی ذمہ داریوں سے آگاہ رہیں۔
لیبر پروگرام سے رابطہ کریں:
1-800-641-4049
Canada.ca/misclassification-trucking
Truckers, misclassification is illegal
- Are you paid through an incorporated business entity?
- Do you drive a truck provided by your employer?
You might actually be an employee and missing out on important workplace entitlements under the Canada Labour Code, such as benefits, paid overtime and job security.
Report misclassification:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
Know your rights!
Arabic: رسالة إلى سائقي الشاحنات، سوء تصنيف العمال هو مخالف للقانون!
- هل تتلقون أجوركم من خلال شركة؟
- هل تقودون شاحنة يوفرها لكم صاحب العمل؟
قد تنطبق عليك في الواقع صفة عامل لكنك تجد نفسك محروماً من عدة حقوق هامة في مكان العمل بموجب قانون العمل الكندي، مثل المزايا، وأجر عمل الساعات الإضافية والأمان الوظيفي.
يجب عليكم التبليغ بحالات سوء تصنيف العمال إلى الجهة التالية:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
كونوا على علم ودراية بحقوقكم!
Canada.ca/misclassification-trucking
German: Lkw-Fahrer: Falsche Einstufung ist illegal!
- Werden Sie über eine Kapitalgesellschaft bezahlt?
- Fahren Sie einen LKW, der Ihnen von Ihrem Arbeitgeber zur Verfügung gestellt wird?
Möglicherweise gelten Sie als Arbeitnehmer(in) und verzichten dadurch ungewollt auf wichtige Rechte am Arbeitsplatz nach dem Canada Labour Code, zum Beispiel auf Sozialleistungen, bezahlte Überstunden und Kündigungsschutz.
FEHLKLASSIFIZIERUNG MELDEN:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
ÜBER IHRE RECHTE BESCHEID WISSEN!
Canada.ca/misclassification-trucking
Hindi: ट्रक चालकों, गलत वर्गीकरण गैरकानूनी है!
- क्या आपको किसी निगमित व्यावसायिक इकाई के माध्यम से भुगतान किया जाता है?
- क्या आप अपने नियोक्ता द्वारा उपलब्ध कराए गए ट्रक को चलाते हैं?
आप वास्तव में एक कर्मचारी हो सकते हैं और कैनेडा लेबर कोड के तहत मिलने वाले महत्वपूर्ण कार्यस्थल अधिकारों, जैसे कि लाभों, सवेतन ओवरटाइम और नौकरी की सुरक्षा से वंचित रह सकते हैं।
गलत वर्गीकरण की रिपोर्ट करें:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
Polish: Kierowco samochodów ciężarowych, błędna klasyfikacja jest niezgodna z prawem!
- Czy otrzymujesz wynagrodzenie od zarejestrowanego podmiotu gospodarczego?
- Czy prowadzisz samochód ciężarowy zapewniony przez pracodawcę?
Być może w rzeczywistości jesteś pracownikiem i tracisz ważne uprawnienia wynikające z Kanadyjskiego Kodeksu Pracy, takie jak świadczenia, płatne nadgodziny i bezpieczeństwo zatrudnienia.
ZGŁOŚ BŁĘDNĄ KLASYFIKACJĘ:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
POZNAJ SWOJE PRAWA!
Canada.ca/misclassification-trucking
Punjabi: ਟਰੱਕ ਡਰਾਈਵਰੋ, ਗਲਤ ਵਰਗੀਕਰਨ ਗੈਰ-ਕਾਨੂੰਨੀ ਹੈ!
- ਕੀ ਤੁਹਾਨੂੰ ਕਿਸੇ ਇਨਕਾਰਪੋਰੇਟਡ ਕਾਰੋਬਾਰੀ ਅਦਾਰੇ ਰਾਹੀਂ ਤਨਖ਼ਾਹ ਦਿੱਤੀ ਜਾਂਦੀ ਹੈ?
- ਕੀ ਤੁਸੀਂ ਆਪਣੇ ਰੁਜ਼ਗਾਰਦਾਤਾ ਵੱਲੋਂ ਦਿੱਤਾ ਟਰੱਕ ਚਲਾਉਂਦੇ ਹੋ?
ਹੋ ਸਕਦਾ ਹੈ ਕਿ ਤੁਸੀਂ ਅਸਲ ਵਿੱਚ ਇੱਕ ਕਰਮਚਾਰੀ ਹੋਵੋ ਅਤੇ ਕੈਨੇਡਾ ਲੇਬਰ ਕੋਡ ਅਧੀਨ ਮਿਲਣ ਵਾਲੇ ਅਹਿਮ ਕੰਮਕਾਜੀ ਅਧਿਕਾਰਾਂ ਤੋਂ ਵਾਂਝੇ ਹੋ ਰਹੇ ਹੋਵੋ, ਜਿਵੇਂ ਕਿ ਕਰਮਚਾਰੀ ਲਾਭ, ਓਵਰਟਾਈਮ ਦਾ ਭੁਗਤਾਨ, ਅਤੇ ਨੌਕਰੀ ਦੀ ਸੁਰੱਖਿਆ।
ਗਲਤ ਵਰਗੀਕਰਨ ਦੀ ਰਿਪੋਰਟ ਕਰੋ:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
ਆਪਣੇ ਅਧਿਕਾਰ ਜਾਣੋ!
Canada.ca/misclassification-trucking
Russian: Водители грузового транспорта! Подмена трудовых отношений — незаконна!
- Вам платят через юридическое лицо?
- Вы управляете транспортом, предоставленным работодателем?
Возможно, вы должны быть оформлены как штатный сотрудник, однако вместо этого лишены важных прав, предусмотренных Трудовым кодексом Канады, включая социальный пакет, оплату сверхурочной работы и гарантии занятости.
СООБЩИТЕ О ФАКТАХ ПОДМЕНЫ ТРУДОВЫХ ОТНОШЕНИЙ:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
ЗНАЙТЕ СВОИ ПРАВА!
Canada.ca/misclassification-trucking
Simplified Chinese: 卡车司机，错误分类属于违法行为！
- 您的报酬是否通过一家注册公司支付？
- 您是否驾驶雇主提供的卡车？
您实际上可能属于正式雇员身份，却未能享有《加拿大劳动法》规定的重要劳动权益，例如福利、带薪加班和就业保障。
举报将雇员错误分类事例：
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
明晰您的权利！
Canada.ca/misclassification-trucking
Spanish: Camioneros: que los clasifiquen mal ¡es ilegal!
- ¿Le pagan a través de una empresa?
- ¿Maneja un camión que le da su empleador?
Tal vez en realidad usted sea un empleado y que esté perdiendo derechos importantes según el Código del Trabajo de Canadá, como beneficios, horas extra pagadas y estabilidad laboral.
REPORTE SU CLASIFICACIÓN INCORRECTA:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1‑800‑641‑4049
¡CONOZCA SUS DERECHOS!
Canada.ca/misclassification-trucking
Traditional Chinese: 卡車司機，錯誤分類屬於違法行為！
- 您的薪資是否透過註冊公司實體支付？
- 您是否駕駛由僱主提供的卡車？
您實際上可能屬於正式僱員身分，卻因此錯失《加拿大勞動法》所保障的重要職場權益，例如福利、有薪加班費及工作保障。
舉報將僱員錯誤分類事例：
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
明晰您的權益！
Canada.ca/misclassification-trucking
Urdu: ٹرک ڈرائیور حضرات، غلط درجہ بندی غیر قانونی ہے!
- کیا آپ کو کسی رجسٹرڈ کاروباری ادارے کے ذریعے ادائیگی کی جاتی ہے؟
- کیا آپ اپنے آجر کی فراہم کردہ ٹرک چلاتے ہیں؟
ممکن ہے کہ آپ درحقیقت ایک ملازم ہوں اور کینیڈا لیبر کوڈ کے تحت اپنے اہم ملازمتی حقوق اور مراعات سے محروم ہو رہے ہوں، جیسے ملازمتی مراعات، اضافی اوقاتِ کار کی ادائیگی اور ملازمت کا تحفظ۔
غلط درجہ بندی کی اطلاع دیں:
edsc.erreursclassification-misclassification.esdc@labour-travail.gc.ca
1-800-641-4049
اپنے حقوق جانیں!
Canada.ca/misclassification-trucking
Examples of misclassification in the road transportation industry
1. Example of an employer-employee relationship
Company ABC is a long-distance trucking company. It provides hauling services and hires incorporated drivers. Company ABC owns the trucks workers drive and their license plates. It pays for operating expenses. It pays the drivers a set mileage rate for all miles driven. The drivers must stay in frequent contact with Company ABC's dispatcher. They may be asked to use specific routes. Company ABC resolves customer complaints and may discipline the truck drivers. The drivers must book time off in advance with Company ABC. Company ABC will choose and pay the replacement driver. The drivers must purchase gas at gas stations where Company ABC has accounts. Company ABC does not charge the drivers a fee for using on-board communication devices. Also, Company ABC pays premiums for workers' compensation insurance on the workers' behalf.
It seems like the incorporated workers are employees. The relationship shows that Company ABC, the payer, has the right to monitor, direct, or control how the worker does the work, whether or not the payer exercises this right. The payer provides the equipment needed for the worker to complete the work and is solely responsible for its maintaining and operating expenses. The driver has no risk of loss by working for the payer. They can't make profit, either, as they perform work only provided by Company ABC at a set rate of pay.
To learn more, visit determining the Employer/Employee Relationship webpage
2. Example of an independent contractor
Claudie, a worker, owns her truck. She pays all its operating costs, including licences, fuel, oil, on-board communication system, repairs, maintenance, and insurance. She has a business presence and advertises her company's services online and in local papers. She does work for various payers according to her availability. Company Z, one of her clients, requires her services regularly for hauling woodchips. She negotiated a flat rate of $ 1,000.00 for each trip she accepts and charges GST. She invoices Company Z and is paid only when the work is completed. She can hire helpers or other drivers to operate her truck and she is responsible to pay them. If she gets a traffic or transport ticket, she pays it.
The whole working relationship shows that Company Z, the payer, does not monitor, direct, or control how Claudie does the work (nor do they have the right to). These factors support that Claudie is an independent contractor. She is not integrated into the operating framework of the payer's business.
For more misclassification examples, visit Misclassification - IPG-105 - Canada.ca for federally regulated employers.
Video: Misclassification: Know Your Rights
Transcript for video: Misclassification: Know Your Rights
Are you an employee in the federally regulated road transportation industry? If you cross provincial or international borders, you may fall under federal jurisdiction. Do you know your rights when it comes to employment classification under the Canada Labour Code?
Employment and Social Development Canada's Labour Program presents: Misclassification: Know Your Rights.
What is employee misclassification? Misclassification occurs when your employer does not consider or treat you as an employee when you are an employee. For example, when they consider you to be an independent contractor when you are, in fact, an employee working set hours for them and using their equipment.
Misclassification is illegal. What is the impact of misclassification?
It matters because by not classifying you as an employee, you are missing out on important rights and entitlements under the Canada Labour Code, such as 10 paid days of medical leave, general holidays, health and safety protections, as well as employer contributions to Employment Insurance, the Canada Pension Plan and provincial or territorial workplace injury protection.
What can you do? First, know your rights. The Labour Program is here to help you. Second, if you think you've been misclassified, contact the Labour Program to find out how to file a complaint. Visit our website for resources and contact us for assistance.
In the trucking industry, knowing your rights and entitlements under the Canada Labour Code is essential.
Visit Canada.ca/Labour to learn more.
Video: Misclassification Is Illegal
Transcript for video: Misclassification Is Illegal
Attention federally regulated road transportation employers.
Misclassification is illegal.
The road transportation industry keeps our country connected, delivering vital goods and merchandise across provinces and territories. This is why it is important to ensure that all workers in this industry are properly classified and protected under the Canada Labour Code.
Misclassification occurs when you treat a worker who meets the criteria to be an employee, as someone other than an employee. For example, misclassifying a driver who works set hours for their employer, using their employer’s equipment, as an independent contractor.
As an employer in the road transportation industry, it is essential that you understand your obligations.
First and foremost, you must correctly classify your workers based on the employer-employee relationship.
Why? Because misclassification is illegal.
Misclassifying drivers is an illegal practice and has consequences.
Owed wages and penalties can be costly. Monetary penalties for misclassification can range from $1,000 to $12,000 and escalates with repeat non-compliance.
What can you do?
First, understand your obligations. By correctly classifying workers, you provide fair treatment, benefits, and a safe working environment.
Ensure proper worker classification to protect your company and support your workforce.
The Labour Program offers guidance and resources to help you achieve and maintain compliance.
Visit our website at Canada.ca/Labour and contact us at 1-800-641-4049 for guidance.