Parliament passes Platform Workers Bill to strengthen protections for platform workers

Singapore is now amongst the first few countries to provide statutory protections for platform workers when the legislative changes take effect on 1 January 2025.

The Platform Workers Bill was passed on 10 September 2024 in Parliament. It will see platform workers, such as delivery workers, private-hire drivers and taxi drivers, grouped under a new category of workers that is distinct from employees and freelancers.

Once the Bill is in effect, companies classified as platform operators must comply with legal obligations and provide protections for their platform workers.

The Bill will also see measures implemented to:

• help platform workers with their housing and retirement adequacy through CPF contributions,
  
  
• provide platform workers with financial compensation for work-related injuries and
  
  
• formalise platform worker representation through Platform Work Associations (PWA).
  
  

Senior Minister of State for Manpower (MOM) Koh Poh Koon, who fronted the second reading of the Bill, shared that the Government will implement transition measures to support stakeholders in executing the changes.

He said: “As Singaporeans, we can all be proud that we are doing this to uplift social security protections for our platform workers who face precarity due to the nature of platform work … This would not have been possible without our tripartite partners and the close tripartite collaboration we have in Singapore.

“I would like to thank NTUC and SNEF for journeying together with us to strengthen our social compact in this new area. Everyone must play their part, including platform operators, platform workers and consumers.”

Six Labour Members of Parliament (LMP) from NTUC stood in support of the Bill, calling it a “positive step forward for Singapore.”

NTUC Assistant Secretary-General Desmond Choo said that the Bill provides platform workers with the protection they deserve, which is essential to building an inclusive society.

“It also demonstrates that the PAP government is prepared to make bold changes to its policies to improve the lives of Singaporeans,” he said.

Enhanced representation

Under the new legal representation framework, Platform Work Associations (PWAs) will be able to represent platform workers in negotiations with platform operators, similar to how trade unions represent employees.

MOM will appoint registrars to regulate and oversee the activities of PWAs.

NTUC Assistant Secretary-General Yeo Wan Ling, in her parliamentary speech, detailed the plight of several platform workers due to inadequate formal representation, insurance coverage, and financial stability and described the Bill as landmark legislation.

“The time has come for our platform workers to forge their own collective agreement so that their voices are heard, their working conditions improved, and their grievances addressed in a timely and fair manner,” she said.

To provide effective representation, NTUC Assistant Secretary-General Patrick Tay said that PWAs will need to regularly conduct elections, secret ballots, and delegate conferences.

He said: “However, unlike trade unions, PWAs will face an uphill task when organising their members and getting them together. This is due to the nature of platform workers and the platform work industry being hyperfluid in nature.”

Mr Tay thereby asked MOM to consider allowing PWAs to use digital voting for secret ballots, to which Dr Koh concurred.

“We agree that platform workers may not have fixed workplaces or fixed schedules, and hence a different way of conducting ballots may be needed. Hence, we accepted the recommendations of the Tripartite Workgroup on Representation of Platform Workers, and MOM will conduct electronic voting for secret ballots for recognition,” he said.

Housing and retirement adequacy

The new legislation will enable platform workers to achieve a similar housing and retirement adequacy level as employees on the same income level.

This will be achieved by mandating or encouraging platform workers, depending on their age, to contribute to their CPF accounts.

The increased CPF contributions will be mandatory for platform workers born from 1995 onwards.

To help lower-wage platform workers transition, the Government will support those who see an increase in their CPF contributions through the Platform Workers CPF Transition Support (PCTS).

Through the PCTS, the Government will pay fully for the increased CPF contributions platform workers earning less than $3,000 net per month would otherwise have to make, so they will experience no decrease in their take-home pay in 2025.

The offset will taper down gradually and cease in 2029.

Ms Yeo asked if the PCTS could be extended to all platform workers instead. She proposed the scheme be capped at up to $2,500 of workers’ earnings, instead of their full month’s earnings.

Dr Koh responded that the enhanced PCTS already has a qualifying income cap of $3,000 and is targeted specifically at lower-income platform workers.

He said: “The median income of a platform worker ranges from $1,500 to $2,500 per month so more than half of platform workers should meet the income criteria for PCTS.”

Additionally, the Government will reimburse platform workers for the platform operator’s share of CPF contributions under government-paid leave schemes, like maternity and paternity leave, when workers take time off to care for their newborns.

Dr Koh assured the house that potential platform operators are supportive of making CPF contributions for their platform workers.

This comes after NTUC Director of Operations and Mobilisation Division Fahmi Aliman expressed his concerns that platform workers could potentially face workplace discrimination because of their CPF contributions.

Dr Koh said: “Platform work associations will have the legal mandate to represent the interests of the platform workers. If there are instances of possible discriminatory practices by any platform operator, the platform work associations can take this up with the relevant operators, and where necessary inform MOM.”

Work injury compensation

Platform workers will also be eligible for work injury compensation when they get injured when picking-up and delivering passengers or goods.

For platform workers injured while performing concurrent tasks for different platform operators, liability will be confined to one platform operator where possible to simplify claims processing.

Compensation will be based on the platform worker’s earnings from all platform operators he worked for before the date of the accident over the last 90 days.

NTUC Freelancers and Self-Employed Unit (U FSE) Director Jean See said that the Bill recognises that platform delivery workers, private hire vehicle drivers, and taxi drivers earn a “precarious living” doing gig work.

She alluded to the fact that many platform operators have exceeded their growth goals over the last decade and are now prioritising larger profit margins.

She hopes that the law can guide platform operators to balance profit-making and building a sustainable livelihood for platform workers.

“Technology without guardrails can dehumanise work and the worker… the Bill is significant because it heralds work and social protections that have an impact on the lives and livelihoods of this precarious group of workers,” said Ms See.

On workplace safety, NTUC Assistant Secretary-General Melvin Yong suggested platform workers be properly trained on road safety and the safe handling of packages to prevent injuries.

“Platform operators must not penalise platform workers for reporting work incidents such as road traffic accidents. Platform workers should be allowed to prioritise their own safety without having to fear that they would be subject to unfair disincentives or penalties,” he said.

While Dr Koh said that the Bill should not change the flexibility of platform work, he agreed that it should not compromise the safety and health of platform workers.

He clarified that Amendments to the Workplace Safety and Health Act which will allow platform workers to prioritise safety without fear of penalty from platform operators. Like other industries, platform operators must address safety and health risks.

“This will be put into practice through the Approved Code of Practice for Platform Services, which MOM and the Workplace Safety and Health Council are consulting the public on… the Approved Code of Practice will codify how platform operators and platform workers can collectively address safety concerns in platform work, including fatigue management and support platform workers’ access to safety training,” said Dr Koh.