PETALING JAYA: E-hailing and delivery riders, who account for most gig economy workers, are getting a raw deal.
They are not classified as employees under the Employment Act nor the Sabah and Sarawak labour ordinances. Unlike others, they do not even get a minimum wage, Deputy Human Resources Minister Datuk Awang Hashim told the Dewan Rakyat recently.
Human Resources Minister Datuk Seri M. Saravanan recently said that the government is looking to introduce a new law to regulate gig services.
Unless that is done, they will continue to be left out in the cold, according to two experts on labour law.
Labour lawyer Kitson Foong said they are not employees in the traditional sense of the word and do not have full control over what they do.
“That gives them little to no protection,” he told theSun, adding that the current employment legislation is based on the traditional structure of a hiring contract between employer and employee.
“Gig workers are more like ‘dependent contractors’. What they do (to earn a living) is somewhat controlled by a gig platform.”
Foong said there have been efforts to provide a certain level of protection of late, such as the introduction of a Self-Employment Social Security Scheme (better known by its Malay abbreviation SPS-Lindung).
Under the scheme, delivery riders working with Grab and Foodpanda are entitled to compensation from the Social Security Organisation in case of accidents at work that lead to injury or death.
“However, this still does not answer the difficult question of their position as employees under labour regulations,” Foong said.
He added that in the event of a dispute, the only avenue for a gig worker to seek redress is to take his case to the Industrial Court.
“Even then, it is still a grey area. Strictly speaking, a lawsuit can only be filed with the Industrial Court by a person who is defined as an ‘employee”.’
Lawyer Etrus Tan said that a way out is for gig workers to file procedures under contract laws in a civil court.
“However, they will not only be responsible for the expense of hiring a lawyer if they desire legal counsel, but also have to pay their opponent’s legal fees if the court rules and awards costs against them.”
He said to avoid this, it is advisable for a worker to ensure that he has a clearly written contract with his employer regarding the provision of his services.
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said an effective mechanism for resolving conflicts between gig workers and platform providers is essential.
Syed Hussain added that more young people are opting for greater independence that they cannot get as salaried employees.
“We must not forget that they also contribute to the economy, so there should be some regulations to ensure their well-being.”
He cautioned against imposing too many rules and restrictions, given that gig work is structurally unlike traditional employment.
“Any change in the existing business model may have a negative impact on the gig economy and bring adverse consequences to their earning capacity.”
He said the number of gig workers dropped from about half a million to only 100,000 when the government introduced new regulations.
