Ensure gig workers are not harmed by new law, says MEF

 

MEF says gig work is structurally different from traditional employment.

PETALING JAYA: Gig workers stand to lose the most if changes are made to existing business models, the Malaysian Employers Federation (MEF) said.

Its president Syed Hussain Syed Husman said any law to regulate gig workers must consider the effect on the growing gig economy.

He was responding to human resources minister M Saravanan’s proposal yesterday to draw up laws to regulate gig workers, who only received social protection under Socso’s Self-Employment Social Security Scheme.

Saravanan said his ministry had been following the issue of gig workers in the country, whether raised by the media or in Parliament.

Syed Hussain, however, said it was not good to impose too many regulations given the novel elements of gig work, which was structurally different from traditional employment.

Therefore, there must be an efficient process to handle conflicts between gig workers, platform providers and customers who use the services, he said in a statement today.

“These gig workers are also contributing to the economy and, hence, there has to be some regulation of the gig economy for their long-term well-being.”

Syed Hussain also cited e-hailing services, which involved about 500,000 people at one time. Only about 100,000 were left now due to licence, social security contribution and vehicle registration requirements.

“The growth of the gig economy which absorbed nearly four million people due to its business model should be facilitated, and there should be novel solutions to these novel situations,” he said. - FMT