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Thursday, February 27, 2025

Gig Workers Bill needs to be refined, say platforms

 

food rider
A top-down approach to deciding on fares and compensation in the gig economy could stifle innovation and competition, say gig economy platforms. (Bernama pic)

PETALING JAYA
Several gig economy platforms have called for the draft Gig Workers Bill 2025 to be refined to ensure it is clear, practical, and can be implemented effectively.

Gig economy platforms such as Grab, Lalamove, and ShopeeFood said that without a clear and comprehensive implementation framework, there is a significant risk that the bill could unintentionally disrupt gig work.

In a joint statement, they expressed concern about increased barriers to entry that would prevent workers from earning a livelihood and stall the sector’s growth and innovation.

They said that while there are merits to setting minimum industry standards, a top-down approach to deciding on fares and compensation in the gig economy could stifle innovation and competition, leading to higher service costs.

The platforms also said the bill should provide more clarity on social protection contributions as it currently fails to address how contribution requirements will apply to workers engaged across multiple platforms, potentially doubling their financial burden.

“This could disproportionately affect smaller industry players, reduce competition in the market, and ultimately reduce earning opportunities for workers across various demographics.” they said.

They proposed conducting a nationwide feasibility and impact study involving direct engagement with platforms and gig workers.

They also suggested regulatory sandboxing to test key provisions in a controlled environment, allowing for adjustments before full implementation.

“This process will enable stakeholders to gather valuable feedback, evaluate regulations, collect valuable data, refine solutions, and better understand potential impacts before wider implementation of the bill,” they said.

The Gig Workers Bill 2025 is expected to be tabled in the Dewan Rakyat next month.

The key aspects of the bill include the introduction of an official definition for gig workers, setting minimum compensation, creating a grievance mechanism, and social security protection such as mandatory contributions to the Social Security Organisation (Socso). - FMT

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