Act to protect gig workers

Break time: A file photo showing a food delivery rider resting before he continues with his job. — AZLINA ABDULLAH/THE STAR

Reports by SHERIDAN MAHAVERA and TEH ATHIRA YUSOF

PETALING JAYA: A fair and transparent mechanism to determine earnings and methods to save up for retirement are among key aspects of a new law to regulate the gig economy, which is worth about RM1.33bil.

Proponents say the new law – the second of its kind in South-East Asia – will also define who is a gig worker, which could broaden the number of people it covers to artistes, musicians, and individuals doing freelance, project- based work.

The Bill for the law is expected to be tabled after the Budget 2025 Bill is passed in the upcoming meeting of Parliament, which starts tomorrow.

“We are among the few in the world to make a serious effort to regulate the gig economy,” said Datuk Seri Mohd Sharkar Shamsudin, adding that there are about four million individuals in the gig economy according to a recent study by the Malaysia Centre for the Fourth Industrial Revolution (4IR Centre).

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Mohd Sharkar heads the gig economy union secretariat, an umbrella group representing gig worker associations that has worked with the Human Resources Ministry on the new law.

“The new law will also pave the way for the eventual setting up of a commission on the gig economy because right now, the sector is being overseen by different ministries and agencies,” he said when contacted.

According to the Malaysian Digital Economy Corporation (MDEC), the entire gig economy stood at RM1.33bil in 2023 and there are currently 140 platforms that have been validated by MDEC.

Although it has been touted as a viable source of income, especially during the Covid-19 movement control periods, drivers and parcel delivery riders have repeatedly complained of being paid unfairly by the platforms they work with.

Due to the precarious nature of their work, the government has also created schemes for them to contribute to the Social Security Organisation (Socso) so as to protect and aid them in case of accidents.

The new law is expected to deal with these aspects and more, said Mohd Sharkar.

Another part of the new law is a mechanism to deal with grievances between workers and the platforms and companies they serve, the Malaysian Gig Community (SEGiM) Secretariat chairman added.

Although many gig workers such as ehailing drivers and p-hailing riders have started contributing to Socso, there are not many options for them to save up for old age.

“So we also want them to have some type of retirement savings and build a safety net because when they are old and retire and they don’t have savings, it’s the government that has to aid them,” said Mohd Sharkar.

Malaysian Ehailing Alliances chief activist Jose Rizal, who was also involved in discussions about the law, said it was proposed that gig workers develop retirement schemes that would match their unique needs.

“The initial idea was for us to also contribute to the Employees Provident Fund, but we believe that it would be too cumbersome since the EPF has its own set of rules and terms,” he said.

“We should develop a scheme that suits our work arrangements, which are often calculated by hour, by day or by jobs, because gig workers are not just drivers or delivery people.”

Jose added that the new law could also look into mandating safer work conditions for workers carrying out physically demanding tasks such as parcel delivery.

“Our own studies show that workers who drive or ride continuously without breaks will fall asleep at the wheel or on their bikes. This is what causes all these accidents.

“Motorcycle delivery riders also have to look at their apps while they are riding – another dangerous act.

“So we’re proposing that there should be a time limit for these apps, so that after a certain hour, it switches off, forcing them to take a break.”