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Distance Expense Allowance - ESR Part 7.2, Section 45.29

Last updated on September 3, 2024

Contents:

Summary
Text of Legislation
Policy Interpretation
Related Information

Summary

This section requires employers to pay a semimonthly distance expense allowance to delivery services workers and ride-hail services workers.

Text of Legislation

Distance expense allowance

45.29 (1) If a delivery services worker uses any form of transportation, other than travelling on foot, to carry out a platform work assignment, the employer of the worker must, in accordance with subsection (3), pay to the worker a distance expense allowance of at least $0.35 for each kilometre travelled during engaged time.

(2) If a ride-hail services worker operates a motor vehicle to carry out a platform work assignment, the employer of the worker must, in accordance with subsection (3), pay to the worker a distance expense allowance of at least $0.45 for each kilometre travelled during engaged time.

(3) At least semimonthly and within 8 days after the end of each pay period, the employer must pay to the delivery services worker or ride-hail services worker, as applicable, the aggregate amount of all distance expense allowances payable to the worker under this section.

Policy Interpretation

To offset transportation costs, online platform employers need to pay their workers a “distance expense allowance” depending on the type of work performed:

  • If a delivery services worker uses a form of transportation other than walking (such as a personal vehicle, rental vehicle, e-bike, bicycle or bus), they are entitled to a “distance expense allowance” of $0.35 per kilometre travelled
  • If a ride-hail services worker operates a motor vehicle, they are entitled to a distance expense allowance of $0.45 per kilometre travelled

The employer needs to pay the total distance expense allowance owed to a worker within 8 days after the end of each pay period.

Related Information

Related sections of the Act or Regulation

ESA

ESR