THE Gig Workers Bill 2024 which is expected to be enacted into law mid-next year is said to be a game changer in the welfare and protection of gig workers.
The Bill, while emphasising on ride-hailing and delivery service providers such as e-hailing and p-hailing, also extends to part-time workers to provide them with the necessary financial and fiduciary protections enjoyed by full-time employees as enshrined in the Employment Act.
Human Resources Minister Steven Sim is expected to present the Bill in its first reading in Parliament on Dec 10.
Sources close to the matter tell Scoop that with the expansion of the gig economy and the country’s reliance on it, there is a need for legislations to protect the backbone of the industry which estimates say contributes to 3% of the country’s GDP.
The bill is focused on four pillars –
- The definition of a gig worker – i.e. a person who enters into an agreement to provide service with a contracting entity in exchange for earnings;
- The base compensation the gig worker enjoys i.e. based on the principles of minimum wage;
- Social security protection; and
- Dispute resolution via a Gig Worker Tribunal.
The eventual Gig Workers Act spells out the rights of a gig worker in terms of payment and provides them with an avenue for complaints and settlement of disputes.
“At the moment they are contractors so they do not have recourse to an industrial tribunal. But a Gig Workers Tribunal will provide them with an avenue for recourse,” said a senior source.
“One must understand that these workers do not come from a position of strength to negotiate with the big companies so the Act provides them with protection and recourse to prevent exploitation,” he added.
Apart from the agreed rate and method of payment, the Bill also spells out that all gratuities and tips belong to the worker.
It also allows the gig worker to contract with multiple parties as the respective company is barred from imposing any restrictions or penalties on a gig worker who has contracts with other parties.
The new Bill also spells out the responsibility of the contracting entity (company) in terms of ensuring health and safety of the worker.
This could mean a revision of the penalties imposed on a gig worker for late delivery to discourage speeding and reckless driving for instance.
While e-hailing and p-hailing firms may welcome a more structured system for the 500,000 people contracted by them, certain provisions may give rise for apprehension.
For instance, currently it is being discussed if they should be required to make a minimum social security contribution.
If so the lines between contract workers and employees will begin to blur.
This is also what Deputy Prime Minister Datuk Seri Zahid Hamidi is contemplating in his push for the setting up of Segim – the Gig Economy Workers Commission.
Segim to some observers is viewed as a political platform for Umno to have influence over the gig workers who make up 85% of young Malays in the B40 category.
Another area of contention to the industry players is the establishing of a Tribunal and the additional powers granted to the Director-General of Labour to oversee the welfare of gig workers.
Here-in, any representation to the Director General cannot be done by individuals but via a representative of the gig workers.
In essence the Bill provides for the setting up of associations akin to a gig workers union.
“One must remember this is thoroughly a Bill designed for the welfare of the gig economy workers. It is not meant to regulate the industry,” said the high-placed source.
This brings us back to Segim and its role in the larger scheme of things.
If the Gig Workers Bill provides for protections, welfare and an avenue to seek recourse – associations, director general’s powers, a tribunal and even a consultative council – what then is the purpose of Segim other than a political entity for Umno to claw itself back into relevance within the Malay community?
According to estimates in Putrajaya, Segim which has lofty ideas to regulate the industry will cost about RM100 million to set up and run.
Moreover, it will need the buy-in of multiple ministries including Kesuma and the Transport Ministry – both of which are controlled by the DAP – and the Ministry of Trade and Industry.
Will these ministries want to give up power? Will a tight-fisted prime minister who is focused on reducing the cost of running the government acquiesce to the demands of his deputy, whom he relied on to form the unity government two years ago?
Even the Gig Workers Tribunal it is understood will in effect be the existing industrial tribunal and its 22 sitting chairmen.
The same tribunal will sit as a Gig Workers Tribunal in the event of a dispute concerning a gig worker and contracting entity.
Meanwhile, the Act makes it tough for the arbitrary revocation of contracts and deactivation of services as the contracting party needs to give valid reasons and reasonable notice. In fact a mandatory contract known as the collective service agreement will dictate the dos and don’ts for each party though they weigh in favour of the worker.
So what are the rates? Terms of service? Working conditions etc? The Bill outlines the establishment of a Consultative Council which will advice the Government and the respective industry of what is appropriate and acceptable.
It will be interesting to see how the industry, especially the big boys, will respond to this enhancement of gig workers’ rights.
Will an industry worth RM2 billion embrace the government’s efforts to provide better protection to these groups of workers?
Or will the bigger players – many of whom already have in place workers welfare protections – decide it is more than a dent to the bottom-line and strong-arm the Government to review its ambitions? – October 26, 2024
Terence Fernandez is Editor in Chief of Big Boom Media which publishes Scoop