Drivers Inc. : Challenges, Risks, and Why Groupe Global Opposes It in the Transportation Industry

For several years, the status of driver inc has sparked numerous debates in the Canadian trucking industry. This model, in which a driver incorporates and invoices their services as an independent business, appears attractive at first glance: more flexibility, potentially higher income, and increased administrative control. However, behind this façade lie several legal, financial, and operational issues that have led many organizations, including Global TL, to take a position against the use of driver inc in a trucking context.

What is a driver inc?

A driver inc is a driver who creates a corporation (incorporation) and provides their services to the carrier as a subcontractor rather than as an employee. In practice, however, these drivers often work under the same conditions as employees — same schedule, same equipment, same responsibilities — which places them in a legally problematic grey area.

Legal risks: false contractor status

One of the biggest issues with the driver inc model is the question of true status.
Several government audits have shown that, in many cases, these drivers do not meet the criteria of a genuine independent contractor.

This leads to:

• risks of reclassification by Revenu Québec or the CRA,
• significant fines for the company and the driver,
• retroactive social contribution amounts,
• potential loss of protections for the driver.

Tax authorities are increasingly monitoring this phenomenon, particularly in trucking, where it has become a widespread practice.

Financial and social impacts

In the short term, incorporation may seem beneficial for a driver, who may sometimes see an improvement in net income.
But in the long term, several protections disappear:

• employment insurance
• CSST (CNESST)
• paid vacation
• employer contribution
• minimum social protections

In the event of an accident, injury, or work stoppage, a driver inc may find themselves with little or no protection.

For companies, working with driver inc also increases non-compliance risks and leads to unexpected costs during tax audits.

Industry inequalities

The driver inc model also creates unfair competition between carriers.
Companies that comply with the law and hire their drivers as employees become disadvantaged compared to those that bypass tax obligations through driver incorporation.

This dynamic affects:

• wage stability in the industry,
• fair competition between carriers,
• the quality of jobs offered.

This is one of the reasons why several organizations, associations, and governments take a firm position against driver inc.

Why Global TL does not work with driver inc

At Global TL, the priority is compliance, safety, and operational stability.
For these reasons, we favour a network of owner-operators who are legitimate, properly incorporated under the rules of the art, and who truly meet all legal criteria of an independent contractor.

We ensure that:

• our drivers are properly supervised,
• our business partners are protected,
• our operations comply with provincial and federal requirements.

Choosing a carrier or a logistics partner that avoids risky practices, such as non-compliant driver inc, ensures better long-term protection for both the company and the drivers.

Need qualified drivers, logistics solutions, or want to join our network?

Whether you are looking for reliable owner-operators, full logistics services, or want to become part of our network, feel free to contact us. The Global TL team is here to support you.