Gig Workers vs Employees - London, Ontario Bylaw Guide

In London, Ontario, businesses and gig workers must consider both provincial and federal tests when deciding whether a worker is an employee or an independent contractor. Provincial guidance explains the workplace and employment-standards perspective, while federal tax and payroll rules explain remittance and withholding obligations. See official guidance from Ontario and the Canada Revenue Agency for the legal tests and tax implications: Ontario guidance^[1] and CRA guidance^[2].

Overview

This article explains criteria commonly used by Ontario and federal authorities, describes municipal enforcement touchpoints in London, and sets out actions employers, platforms and workers can take to reduce legal and financial risk. It is aimed at platforms, couriers, drivers, food delivery workers, and small businesses operating in London, Ontario.

Key factors used by authorities

• Control and direction: who sets schedules, routes and how work is performed.
• Ownership of tools and investment: who provides vehicle, phone, or equipment.
• Chance of profit/risk of loss: whether the worker bears business risk.
• Integration: whether the worker is part of the hiring organisation’s business or operates independently.

Penalties & Enforcement

Enforcement and penalties depend on which authority investigates. Employment-standards issues are typically handled by the Ontario Ministry of Labour; tax and withholding issues are handled by the Canada Revenue Agency; municipal enforcement in London addresses licensing, public-safety and local bylaw compliance. For municipal complaints contact City of London By-law Enforcement here^[3].

• Fines and monetary penalties: specific dollar amounts for misclassification or payroll remittance vary by program and are not listed on the cited municipal page; see provincial and federal pages for program details and penalties (amounts often set by statute or tax regulation and may be applied as assessments or interest).
• Escalation: authorities may issue warnings, demand letters, administrative monetary penalties, payroll assessments, or prosecute in court; specific escalation ranges are not specified on the cited municipal page.
• Non-monetary sanctions: orders to comply, stop-work orders for unlicensed activity, corrective pay orders to workers, and court injunctions; municipal officers can issue orders under local bylaws when public-safety or licensing breaches occur.
• Enforcer and complaint pathways: provincial employment standards inspectors, CRA auditors, and City of London By-law Enforcement handle complaints and inspections; use the links and complaint forms on official sites to submit evidence and requests for inspection.
• Appeals and review: review or appeal routes depend on the enforcing agency; time limits for appeals are set by statute or agency rules and are not specified on the cited municipal page—consult the provincial or federal decision letter for exact deadlines.
• Defences and discretion: common defences include demonstrating independence on the multi-factor tests, written contracts, insurance and business registrations; agencies may consider reasonable excuse or remediation when exercising discretion.

Applications & Forms

There is no specific municipal "classification" form published by the City of London. For employment-standards complaints or inquiries, follow procedures on the Ontario page cited above; for tax and payroll questions, use CRA forms and publications referenced on the CRA page. If you need municipal licences for delivery or business operations, use the City of London licences and permits portal.

Action steps for employers, platforms and workers

• Review contracts and day-to-day practices against the Ontario and CRA tests.
• Document control, payment method, and instructions given to the worker.
• Contact the appropriate agency for clarification if unsure; keep records of inquiries and responses.
• If required, correct payroll remittances promptly and seek professional advice to limit assessments and interest.

FAQ

How can I tell if a gig worker is an employee or a contractor?

Authorities apply multi-factor tests considering control, ownership of tools, chance of profit, and integration. No single factor is decisive; consider the total relationship and documented practices.

Who enforces classification rules in London?

Employment standards are enforced by the Ontario Ministry of Labour; tax withholding and remittance are enforced by the CRA; the City of London enforces local licensing and bylaw compliance related to business operations.

What should I do if I get a complaint or audit?

Gather contracts, invoices and communications; respond by the deadline in the notice; consider voluntary remittance correction and seek legal or accounting advice.

How-To

1. Collect the contract, payment records and evidence of daily instructions.
2. Compare facts to provincial and federal tests for employment status.
3. If unclear, request an opinion from the provincial ministry or obtain professional tax advice.
4. If a complaint or audit arrives, respond within the stated time and provide requested documents.
5. Remediate promptly if necessary: correct payroll remittances, issue appropriate pay, and document corrective actions.

Key Takeaways

• Classification depends on multiple factors; contracts alone are not determinative.
• Follow both Ontario employment-standards and CRA tax guidance to reduce risk.
• Use official agency contact pages to submit complaints or requests for clarification.

Help and Support / Resources

• City of London - By-law Enforcement
• City of London - Licences & Permits
• Ontario Ministry of Labour - Employee or Independent Contractor

1. [1] Ontario Ministry of Labour - Employee or Independent Contractor
2. [2] Canada Revenue Agency - Employee or Self-employed
3. [3] City of London - By-law Enforcement