Passing of the Platform Workers Bill: Upcoming New Regulations for Platform Operators

On 10 September 2024, the Platform Workers Bill was passed in Parliament, with the intention for it to come into force on 1 January 2025. The Bill will:

1. impose several regulatory requirements on platform operators, such as the obligation to provide earnings slips to their platform workers;
2. require platform operators to provide work injury compensation (“WIC“) to platform workers, as well as impose a duty to take necessary measures to ensure the safety and health of its platform workers so far as is reasonably practical;
3. require platform operators to provide Central Provident Fund (“CPF“) contributions; and
4. enhance representation for platform workers by granting them the right to seek formal representation through a representation framework.

In a press release issued on 22 August 2024 (“Press Release“), the Ministry of Manpower (“MOM“) announced that certain of the above requirements will be implemented on 1 January 2025.

Regulatory Requirements

Under the Bill, a platform operator (as defined in clause 4 of the Bill) must:

1. notify the Commissioner for Labour (“Commissioner“) if it ceases to be a platform operator;
2. make and keep records for every platform worker, including those who have ceased to provide platform services on its behalf; and
3. provide earnings slips to platform workers.

Importantly, if a person (including a foreign person) self-assesses that it satisfies the clause 4 criteria to be a platform operator, it must also notify the Commissioner. To assist with the self-assessment, MOM will provide resources such as a checklist.

Upon notification, MOM will add the company to a list of platform operators on its website. Workers may refer to this list to determine whether they qualify for platform worker protections.

Work Injury Compensation; Workplace Safety and Health

Once the Bill is passed, it will amend the Work Injury Compensation Act 2019 (“WICA“) such that platform workers will have the same level of WIC coverage as employees, comprising (i) reimbursement for medical expenses; (ii) income loss compensation for medical leave and hospitalisation leave; and (iii) lump-sum compensation for permanent incapacity or death.

Among other matters, the Bill addresses:

1. Exclusions from WIC coverage if the injury was caused by the use of an illegally modified vehicle, or if the platform worker was not licensed to operate the vehicle;
2. Covered activities, namely the pick-up and delivery of passengers or goods. Platform workers will not be covered if they are waiting for jobs;
3. Platform operators’ liability for situations where:
   • two or more employers and/or platform operators are severally liable to pay compensation under the WICA in respect of the individual’s incapacity or death; and
   • a platform worker suffers personal injury in the course of providing platform services for two or more platform operators.

To mitigate costs concerns of stakeholders, the Government has worked with seven insurers to develop operational policies as part of the Platform Workers Work Injury Compensation Implementation Network, including providing data for more accurate risk assessment.

The Bill will also amend the Workplace Safety and Health Act 2006 (WSHA) to provide for the duty of every platform operator to take, so far as is reasonably practicable, necessary measures to ensure the safety and health of its platform workers. MOM and the Workplace Safety and Health Council are working with the industry to develop an Approved Code of Practice (ACOP) for Platform Services to establish baseline safety and health standards for platform services.

CPF Contributions

Under the Bill, the CPF contribution rates for both platform workers and operators will gradually match that of salaried employees. The CPF contribution rates for platform workers and platform operators will be increased over five years, by up to 2.5%-pt per year and up to 3.5%-pt per year respectively.

Fixed Expense Deduction Amount (“FEDA”) for WIC Claims and CPF Contributions

To avoid the administrative hassle of tracking and documenting actual expenses, a FEDA will be applied to all platform workers’ gross earnings to derive their net earnings (i.e. gross earnings minus the FEDA). The net earnings will be used to compute WIC quantum and CPF contributions.

Legal Representation for Platform Workers

Under existing laws, platform workers are not recognised as employees and are therefore prohibited from forming unions. Part 3 of the Bill will create a legal framework to empower platform work associations (“PWAs“) to collectively represent platform workers. PWAs will be able to negotiate collective agreements with platform operators and establish formal grievance-handling mechanisms for members.

MOM will appoint registrars to regulate and oversea PWA activities, while existing channels for dispute resolution will be extended to PWAs and platform operators.

Implementation

In the Press Release, MOM announced that from 1 January 2025:

1. the requirements for platform operators to provide CPF contributions and work injury compensation will commence;
2. enhanced representation for platform workers will commence; and
3. the Platform Workers CPF Transition Support (“PCTS“) will be enhanced by increasing the monthly income ceiling and the quantum of support. The PCTS will provide monthly cash support for eligible platform workers to cushion the impact of CPF contributions on their take-home pay.

Once the Bill comes into force, it will supersede any existing contractual provisions between a platform operator and its platform workers that are less favourable.

Should you have any queries about the details of the regulatory requirements, the implications of the Bill, and how best to prepare for the changing regulatory landscape, please feel free to contact Rajah & Tann’s Employment team.

Click on the following links below for more information (available on the MOM website at www.mom.gov.sg):

• Second Reading Speech at Platform Workers Bill
• Round Up Speech at Platform Workers Bill
• MOM Press Release titled “New Platform Workers Bill to Strengthen Protections for Platform Workers”
• MOM Press Release titled “Implementation Date of Platform Worker Protections and Enhancements to Platform Workers CPF Transition Support”
• Full text of the Bill (available on the Singapore Statutes Online website at agc.gov.sg)