GEORGE TOWN: The Consumers' Association of Penang (CAP) has lauded the announcement that the Gig Workers Commission will prioritise social protection, contract disputes, and career advancement for the 1.16 million gig workers in Malaysia.
Although it was earlier announced that the GWC Bill would be tabled in Parliament in July, it has been pushed back to October.
CAP president Mohideen Abdul Kader said establishing an independent commission was the right way to go.
He, however, said they were concerned about the challenges the commission would face due to the unique nature of the gig economy and the existing regulatory environment.
"One major stumbling block is the proper classification of their employment status as either employees (employment of service) or independent contractors (employment for service).
"This distinction affects the types of benefits and protections they are entitled to receive, as most gig workers are considered independent contractors.
"As independent contractors, gig workers do not work under the direction of their employer, are not required to work at specific times and places, are not provided with necessary tools or equipment for the job by the employer, do not receive regular salary or wages, and are not prohibited from working for other employers.
"The existing labour laws are primarily designed for traditional employment relationships and may need significant amendments to accommodate the gig economy," he said today.
Mohideen said if a benefits system for gig workers is implemented, mechanisms must be established to monitor compliance, handle disputes, and ensure that benefits are correctly administered.
"This requires significant administrative resources and infrastructure.
"Ensuring that all gig economy companies comply with new regulations can be challenging, particularly for smaller or informal platforms," he added.
According to Mohideen, the commission must also increase the awareness of gig workers about their rights and how to access benefits such as the Employees Provident Fund and Social Security Organisation (Perkeso).
The EPF helps safeguard their financial future by providing retirement savings, while Perkeso offers protection against medical expenses due to accidents or injuries sustained while working.
As recently as July, it was reported that only about 250,000 (21.6 per cent) out of the 1.16 million gig workers in the country contribute to Perkeso.
Mohideen also called on the government to offer skills training opportunities to gig workers to broaden their chances of seeking permanent employment if they choose to, although a percentage of them are already gainfully employed and only rely on gig work for additional income.
CAP also called on the government to conduct consultations to explore how to clarify employment status and ensure that gig workers receive appropriate benefits and protections; consider workers' entitlement to overtime pay for hours worked beyond the standard 40-hour workweek; provide access to Perkeso for those working more than 15 hours per week; offer protection against discrimination and sexual harassment for drivers; protect gig workers from non-payment by requiring written contracts and timely payment and provide gig workers with legal recourse if they are not paid for their work.
"The importance of the gig economy cannot be overlooked.
"As World Bank data shows, in 2018, freelancers constituted as much as 25.3 per cent of the total Malaysian labour force, and the gig economy was responsible for as much as 26 per cent of total economic growth," he said.
On July 4, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said a bill related to the welfare of gig workers is expected to be tabled for its first reading at the Third Meeting of the Third Session of the 15th Parliament in October.
Zahid, who is also the Rural and Regional Development Minister, said this was decided at a meeting of the High-Level Committee on the Establishment of the Malaysian Gig Economy Commission, which he chaired.