New legislation defines, outlines protections for platform workers
The Singapore government will be introducing a new Platform Workers Bill, which aims to define this group of workers and distinguish them from regular employees and freelancers.
"The relationship between Platform Operators and Platform Workers is distinct from employment or freelancing," the Ministry of Manpower said in a statement. "As such, the bill creates a new category of workers in addition to employees and the self-employed."
According to MOM, this makes Singapore one of the first countries in the world to recognise platform workers as a distinct and separate group.
The recognition comes amid the rapid growth of individuals joining the platform economy over the past years. In Singapore, MOM said there were about 70,500 platform workers in 2023, equivalent to three per cent of the country's workforce.
Among them, 22,200 were cabbies, 33,600 were private-hire drivers, and 14,700 were delivery workers.
The new bill will define platform workers as individuals who have an agreement with a platform operator to "provide ride-hail or delivery services in Singapore to users for the Platform Operator and from this, derive any payment or benefit in kind."
"They are also subject to the control of Platform Operators, such as what tasks are assigned to them and how much they are paid. Platform Workers will be given an earnings slip that specifies their status as a Platform Worker," MOM said.
Meanwhile, the bill also defines platform operators as organisations that have an agreement with users to provide ride-hail or delivery services.
These operators also use data to automate decision-making relating to platform workers, as well as impose rules, requirements, or prohibitions on these individuals.
MOM said it will be up to employers to self-assess and notify the ministry whether they are a platform operator.
"Upon notification, the company will be added to a list of platform operators on MOM's website. Workers can refer to this list to ascertain whether they should receive Platform Worker protections," it said.
Resources will be made available online for organisations to help them evaluate if they are a platform operator, MOM added.
The bill will also introduce an increase to the CPF contribution rates of platform operators and workers to match those of regular employers and employees.
According to MOM, the CPF contribution rates will be gradually increased by up to 2.5 percentage points per year and up to 3.5 percentage points per year.
"These CPF contributions will go to Platform Workers' Ordinary, Special, and MediSave Accounts on a monthly basis, and will help Platform Workers to achieve the same level of housing and retirement adequacy as employees who earn the same amount," MOM said.
The bill will also ensure that platform operators provide their workers with Work Injury Compensation insurance that matches that of regular employees, as well as set up a new legal representation framework for platform workers.
According to MOM, they plan to implement these protections starting January 1, 2025.
"The Platform Workers Bill is about strengthening our social compact, where everyone – Platform Operators, Platform Workers, and consumers – plays a part to support the protections for Platform Workers," it said.
