MoHR must enact legislation to mandate social security protection coverage for gig workers now



I have just attended a press conference held by MCA NGO Civil Society Movement Coordination Bureau chairman Sdr Ng Kian Nam at Menara Perkeso, Jalan Ampang. Kian Nam who is the spokesperson for the Campaign to Defend the Rights of E-Hailing Drivers in Malaysia (Kempen Mempertahankan Hak Pemandu E-hailing Di Malaysia) had attended a mediation meeting called by the Industrial Relations Department between Grab and an e-hailing driver on the recognition of e-hailing drivers as “employees” and wrongful dismissal.

Meanwhile, MCA is supportive of gig workers in their calls that they be provided social security protection coverage considering that trends today reveal that full-time employment is shifting towards an on-demand labour market.

As of October 2019, the Land Public Transport Agency (APAD) has authorised 42 e-hailing companies to operate in Malaysia. With new bike hailing or motorcycle ridesharing services in Malaysia under Dego Ride, Grab Bike and Gojek set to take off, it is imperative that legislation be enacted to offer similar employment protection coverage to gig workers as currently provided for full time office workers.

Medical & hospital coverage
As most gig workers are motorcycle riders, they are more susceptible to work-related accidents and injuries. Likewise, e-hailing car drivers risk being robbed and assaulted. Thus, the Human Resource Ministry (MoHR) must consider compelling e-hailing operators to provide medical or hospital coverage for gig workers registered with them.

Gig platforms have become an indispensable service for urban consumers and a major source of income for an estimated 250,000 gig workers around the country by industry estimates (Study by The Centre in late 2019).

MoHR should seriously look into this because, we are not only taking about the livelihoods of 250,000 gig workers, but their respective families as well. On average, if one gig worker supports 3 other family members, the figure will peak to 1 million dependents on gig workers who will be affected if accidents befall.

SOCSO contribution
Besides medical and hospital coverage, gig workers lack access to social protection such as Employee Provide Fund (EPF) and SOCSO contributions, which are mandated by law but only for formal employees.

Thus, MCA supports any policy or legislation that would require deduction or setting aside some savings from the income of gig workers to contribute towards such social security schemes such as SOCSO.

New definition of employment
MCA also supports any new legislation on gig workers which could contain the beginnings of a new definition of employment, with new responsibilities for 'quasi-employers' like gig platforms.

In the past, people turned to part-time jobs as a source of supplementary income or to earn extra pocket money. These days, gig work has become necessary to eke a livelihood and the numbers of gig workers look set to rise.

The United Kingdom has already recognised this category of e-hailing drivers as gig employees. It is high time for the Malaysian government to enact laws or provisions to cover and provide protection to gig employees in Malaysia.

Chan Quin Er
MCA Spokesperson

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