Gig economy platform workers make up about 3% of Singapore’s workforce (about 73,200 workers). This includes private hire car drivers, taxi drivers and delivery drivers. As ridesharing and food delivery platforms become more ubiquitous, protecting this group of platform workers has become increasingly important as they fall outside of conventional employment.
To examine this issue, the government had set up an Advisory Committee on Platform Workers as well as a public consultation on strengthening protections for platform workers. Additionally, the Institute of Policy Studies (IPS) also conducted an in-depth study and forum on platform workers.
Taking reference from the speech of Senior Minister of State for Manpower Dr Koh Poh Koon at Committee of Supply 2022, here are the 3 possible changes that may affect platform workers in Singapore.
#1 CPF Contributions For Platform Workers
One key area of concern for platform workers is their housing and retirement adequacy. Unlike employees who make contributions (20%*) and receive employers’ contributions (17%*) to their CPF, platform workers are currently classified as self-employed persons who are only required to make MediSave contributions (4% to 10.5%*).
*CPF contributions vary based on age. 20% employee contribution and 17% employer contribution apply for those aged 55 and below. Self employed persons’ MediSave contributions vary based on age and income. 4% applies to those aged below 35 who have a net trade income of $6,000 to $12,000.
84% of the IPS survey respondents indicated worries about their retirement savings while more than half of the public consultation exercise respondents felt that mandatory CPF contributions to their Special and Ordinary Accounts would be important for their retirement and housing needs.
To address this, the Committee is considering the idea of “requiring platform companies to make CPF contributions to support the retirement and housing needs of platform workers… An option being considered is a phased approach which would allow time for the platform ecosystem to adjust.”
#2 Provision of Coverage Against Work Injuries
Despite their nature of work which requires them to be on the road, platform workers are rarely adequately insured against work injuries. Under the Work Injury Compensation Act, employees can claim for three main types of compensation for work injuries:
- Medical leave wages for days that your employee is issued with medical leave (MC) or light duty due to the work injury or disease.
- Medical expenses incurred, including hospital bills, medication, and other charges due to the work injury
- Lump sum compensation for permanent incapacity, current incapacity or death.
About 90% of IPS respondents indicated that they were worried about whether they have enough savings if they or their dependent family member has an accident or serious illness. The gig economy nature of platform work means that any work injuries would result in not just medical expenses but also a loss of income. Platform workers suffer a double whammy if they are injured in their course of work.
Today, some platforms include some form of insurance coverage. However, this is not consistent across platforms and is also not applied equally across the different tiers. Some platforms provide different coverage for drivers based on their award/ bonus tiers. In the cases where there is no platform coverage, the drivers will have to source for their own coverage at their own expense.
To address this, the Committee is exploring how the overall Work Injury Compensation Act (WICA) framework can be applied in this setting.
Read Also: Work Injury Compensation Act (WICA): What Employers Need To Know
#3 Representation For Platform Workers
Based on the public consultation, some platform workers have indicated the lack of avenues to voice concerns. Others indicated that they want representation to have a say in the contract terms that impact their well-being.
According to the IPS survey, while platform workers generally regard themselves as self-employed, they are also restrained within the app’s boundaries and rewards. 44% of respondents actually don’t see themselves as partners in the ride-sharing business. 29% strongly agreed that the government would best represent their interest while only 9% strongly agreed that the ride-sharing companies would best represent them (the lowest of the available options).
The platforms themselves have indicated their willingness to support good industrial relations and improve the working conditions of platform workers.
To address this, the Committee is exploring suggestions such as the establishment of industry-wide norms through tripartite discussions or with an independent body, or for unions to represent platform workers.
Other Possible Interventions
Apart from the above-mentioned 3 possible changes, the IPS survey also recommended other interventions such as:
- Rest period policy: to nudge drivers to rest after driving for a pre-determined time period. This would help ensure that drivers are not overly fatigued, leading to endangerment on the road.
- Assistance to pivot to new careers: to help drivers who want to switch industries but feel ill-equipped to do so. This may help drivers gain better long-term career prospects instead of focusing on the short-term.
- Urban infrastructure landscape: to help drivers navigate the urban infrastructure through features such as better rest stops and waiting spaces, pick up and drop-off points. This would create a safer environment for riders and pedestrians.
How The Government Decides Will Affect The Future Of Platform Work
The long deliberation by the Committee and Government to determine platform work is understandable as it has long-term implications on employment and labour matters. As platform workers straddle the space between employees and self-employed, the government must balance both labour protections as well as flexibility and accountability.
Internationally, governments also grappling with the implications of platform work:
- The Dutch courts ruled in September 2021 that Uber drivers are employees, not contractors, and so entitled to greater workers’ rights under local labour laws
- In the UK, Uber drivers are accorded a “worker” status (not employee status which carries additional entitlements) that entitles them to a minimum wage, holiday pay and pension plans in 2021.
- In California, US, despite a 2019 ruling that app-based companies should treat contract workers as employees and provide health care, unemployment insurance, and other benefits, a subsequent ballot measure (funded by the app-based companies) – Proposition 22 – exempting these companies was passed in 2020.
For Singapore, the Committee’s direction on how to treat platform work will affect both the platforms’ business viability as well as the individual platform workers who rely on these platforms for a source of income and work flexibility.
