What Is the Gig Economy? Meaning, Examples, and Worker Rights in Canada

The gig economy has transformed how millions of people work worldwide — and Canada is no exception. From Uber drivers to freelance designers, gig workers make up a growing share of the workforce. But what exactly does the gig economy mean, and what rights do gig workers in Canada have?

Gig Economy Meaning: What Is It?

The gig economy refers to a labour market made up of short-term, flexible, and often contract-based jobs instead of permanent, full-time employment. These “gigs” are typically:

• Freelance or contract roles
• App-based jobs through companies like Uber, Lyft, and DoorDash
• Temporary or project-based work

What Is the Gig Economy in Canada?

The gig economy in Canada has grown rapidly in recent years. Studies show that nearly one in 4 Canadians are now working gig jobs in some capacity — whether as a side hustle or a primary source of income. Popular gig jobs in Canada include:

• Rideshare driving (Uber, Lyft)
• Food delivery (DoorDash, SkipTheDishes, Uber Eats)
• Freelance digital work (writing, design, marketing, IT)
• Trades and labour through online platforms
• Short-term contracts in professional fields

For many, gig work provides flexibility and independence. But it can also come with uncertainty, especially around income stability and employment rights.

Gig Economy Examples

Here are some clear gig economy examples you’ll recognize:

• Uber or Lyft driver – Paid per ride, responsible for expenses like gas and maintenance.
• Food delivery courier – Earnings based on deliveries, tips, and surge pricing.
• Freelance graphic designer – Project-based, often juggling multiple clients.
• Tutor or consultant – Independent, short-term engagements with varying income.

These examples highlight both the freedom and the unpredictability of gig work.

Who Are Gig Workers?

A gig worker (sometimes called an independent contractor) is anyone who earns income through short-term, project-based, or app-based jobs rather than permanent employment.

Gig workers in Canada often include:

• Students looking for flexible income
• Professionals seeking side work
• New Canadians entering the labour market
• Skilled freelancers building independent careers

Do Freelancers Pay Taxes in Canada?

Yes. Both freelancers and gig workers must pay taxes in Canada, even if they aren’t classified as traditional employees. Key points:

• You must report all self-employment or gig income on your tax return.
• You may need to charge and remit HST/GST if your annual income exceeds $30,000.
• Business expenses (like gas, home office, supplies) can often be deducted.

Because most gig workers are treated as independent contractors, companies like Uber or Fiverr don’t deduct taxes for you — meaning the responsibility falls on the worker.

Challenges of the Gig Economy in Canada

While the gig economy offers flexibility, workers face unique challenges:

• No guaranteed hours or income stability
• Lack of benefits such as health coverage, vacation pay, and pensions
• Uncertain worker classification — employee vs. contractor disputes
• Tax obligations that can surprise workers at year-end

These issues have sparked legal challenges across Canada, including class action lawsuits seeking overtime, holiday pay, and severance for gig workers wrongly classified as contractors.

Key Takeaways for Employees

1. The gig economy means short-term, flexible, and often app-based work.
2. Common gig jobs in Canada include ridesharing, food delivery, and freelance digital work.
3. Gig workers must pay taxes like freelancers, including HST/GST if they exceed $30K.
4. Legal debates continue in Canada about whether many gig workers are actually employees entitled to benefits and protections.

Speak to an Employment Lawyer About Gig Work in Canada

If you are a gig worker in Canada and believe your employer has misclassified you as a contractor, you may be owed significant compensation, including severance pay.

At Samfiru Tumarkin LLP, our team is leading major legal challenges on behalf of Canadian gig workers. We also represent non-unionized employees in wrongful dismissal and other disputes with companies like Uber and other gig platforms.

• 👥 Over 50,000 clients helped across Canada
• 💰 Secured millions in severance and settlements
• 📱 Free Termination Consultations — in many, but not all, cases
• ⚖️ No win, no fee — you don’t pay unless we succeed
• ⭐ 3,000 5-star Google reviews across Canada (4.7 average)
• 🏆 Recognized as one of Canada’s Best Law Firms by The Globe and Mail

📞 Call us at 1-855-821-5900 or request a consultation online.