Legislation to Require Companies Hiring Workers in Gig Economy to Recognise Them as Employees
Ministry of ManpowerSpeakers
Summary
This question concerns legislating for gig workers to be recognized as employees to access benefits, retirement protection, insurance coverage, and the Progressive Wage Model. Minister Mrs Josephine Teo responded that the government is reviewing how to achieve fairer relationships between gig workers and intermediaries while assessing the complex local implications of worker reclassification. She explained that employee status impacts work opportunities and Central Provident Fund obligations, leading the government to consider alternative strategies like strengthening worker representation. Minister Mrs Josephine Teo added that tripartite partners will evaluate the feasibility of applying the Progressive Wage Model to this sector. She concluded by noting that low-income gig workers currently qualify for support schemes including the Workfare Income Supplement while many prefer their self-employed status.
Transcript
34 Mr Gan Thiam Poh asked the Minister for Manpower (a) whether the Ministry will consider introducing legislation to require companies hiring workers in the gig economy to recognise them as employees so that they can enjoy all benefits and retirement protection like regular employees; (b) whether these workers can be brought under the Progressive Wage Model scheme; and (c) whether they can be covered for health and personal accident insurance by their contractors.
Mrs Josephine Teo: There is no internationally accepted definition of gig workers. In Singapore, the term generally refers to self-employed persons (SEPs) who source for a significant part of their work using online matching platforms. Currently, such workers constitute about 3% of our resident workforce. Most are engaged as private hire car drivers, taxi drivers and car and light goods vehicle drivers, who include delivery riders. The majority express a preference for self-employment.
I had shared in my Committee of Supply speech last month how we are supporting SEPs, including gig workers, who wish to switch to regular employment and how we have started to help them better meet healthcare and retirement needs. As I also mentioned, the Government will review how to bring about a fairer and more balanced relationship between gig workers and the intermediaries that deploy their services.
As the Member suggested, one way is to recognise them as employees. However, it is not straightforward, as we can see from the uneven experience overseas. We must assess the implications in the local context, including the impact on work opportunities available, the protections they might enjoy, as well as their obligation to make employee CPF contributions, if they are recognised as employees. Another way is to strengthen representation of SEPs, which NTUC has expressed keen interest in. The issues we will study include employee protections and benefits, as well as retirement adequacy.
On bringing gig workers under a Progressive Wage Model, we will work with tripartite partners to assess its feasibility. In any case, gig workers and SEPs who earn less are also eligible for a range of support schemes, including Workfare Income Supplement.