Platform Workers Act strikes crucial balance for future of gig economy

The Act grants platform workers much-needed protections while allowing room for business innovation.

- Mathew Mathews

The passing of Singapore's Platform Workers Bill is a monumental step in addressing the evolving nature of work in the digital age.

As gig economy platforms such as Gojek and Grab become ingrained in everyday life, the status of platform workers has increasingly come under scrutiny.

Striking a careful balance between protecting workers' rights and preserving the flexibility that the gig economy aspires to provide is not easy. It is an issue faced by many countries.

ADDRESSING THE CLASSIFICATION DILEMMA

One of the thorniest issues in the gig economy is the classification of platform workers.

Currently, these workers are classified as self-employed, meaning they lack access to the benefits that employees enjoy under Singapore's Employment Act. They do not receive paid leave and Central Provident Fund (CPF) contributions, and have no mandated work injury compensation.

Platform operators, on the other hand, refer to these workers as "partners" independent contractors who provide services to consumers. This arrangement theoretically gives workers the freedom to work when and how they want, setting their own hours and determining their earnings based on effort. However, the reality is far more complex.

There is a clear power imbalance between platform workers and operators. Algorithms dictate the terms of engagement, and workers are heavily managed by the platforms, from job allocation to performance ratings.

The supposed autonomy that gig workers have is often illusory.

To earn a decent wage, platform workers must conform to the app's rules and work patterns, much like traditional employees, but without the associated benefits.

Singapore's recognition of this hybrid status in the new Act is a crucial acknowledgment of the reality these workers face.

A NEW CATEGORY OF WORKER