GEORGE TOWN, July 30 — The Consumers’ Association of Penang (CAP) has expressed its approval of the Gig Workers Commission’s (GWC) initiative to prioritize social protection, contract disputes, and career advancement for Malaysia’s 1.16 million gig workers. However, CAP has also raised concerns about the implementation challenges, particularly given the unique nature of the gig economy and the existing regulatory environment. Originally slated for a July tabling, the GWC Bill has now been postponed to October.
While CAP supports the establishment of an independent Commission, it emphasizes the difficulty in classifying gig workers’ employment status as either employees or independent contractors. This classification is crucial as it determines the benefits and protections available to them. Most gig workers are classified as independent contractors, which means they are not provided with employer-directed work schedules, tools, regular salaries, or restrictions on working for other employers. Existing labor laws, designed for traditional employment relationships, may need significant amendments to accommodate the gig economy.
CAP also highlights the need for a robust system to monitor compliance, handle disputes, and administer benefits if a benefits system for gig workers is implemented. This system would require substantial administrative resources and infrastructure. Additionally, the Commission must enhance gig workers’ awareness of their rights and access to benefits like the Employees Provident Fund (EPF) and Social Security Organisation (Socso). As of July 2024, only 21.6 percent of gig workers contribute to Socso.
CAP urges the government to offer skills training opportunities, conduct consultations on employment status clarification, consider overtime pay entitlements, ensure access to Socso for those working over 15 hours per week, provide protection against discrimination and non-payment, and offer legal recourse for unpaid work. Recognizing the gig economy’s significant role in Malaysia’s labor force and economic growth, CAP stresses the importance of addressing these challenges effectively.
