New Platform Workers Bill introduced for workers managed by delivery service or ride-hail platforms

At a glance

• The Platform Workers Bill (Bill), introduced to Parliament on 6 August 2024, aims to provide rights and protections to platform workers, with a second reading expected in September 2024.
• The Bill applies to on-demand delivery and ride-hailing workers under platform management control, creating a third class of workers for businesses providing platform services.
• It proposes aligning platform workers’ contributions to the Central Provident Fund (CPF), Singapore’s national pension savings plan, with those of regular employees, ensuring adequate retirement funds.
• The Bill requires platforms to provide insurance to their drivers, addressing inconsistent workplace injury protections, and proposes amendments to the Industrial Relations Act 1960 (IRA) and Trade Disputes Act 1941 (TDA) to allow platform workers to join representative bodies similar to trade unions.

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On 6 August 2024, the Bill was introduced in the Singapore Parliament. The Bill aims to introduce rights and protections to platform workers in the form of financial security, representation and workplace safety. A second reading of the Bill is expected in September 2024.

The Bill will apply to on-demand delivery and ride-hailing services and will create a third class of workers for businesses providing platform services. These platforms workers will be designated as a distinct category, separate from employees and the self-employed. 

Importantly, the rights and protections are conditional on the worker being under management control by a 'platform service' (amongst other requirements), and this is narrowly defined as either a delivery service or a ride-hail service, that is provided in Singapore, via a digital or other platform. This is a welcome development as there had been some concern that the scope of the Bill may have been too broad and could in principle have captured businesses and workers in other industries.

One of the key reforms in the Bill will introduce secure adequate retirement funds for platform workers through aligning their contributions to the CPF, Singapore’s national pension savings plan. Currently, platform workers, like other self-employed individuals, contribute up to 10.5% of their income to the CPF, with no obligation for platform service providers to contribute. However, if the Bill is passed, both platforms and their workers will need to contribute to the CPF at the same rate as other businesses.

Additionally, the Bill also makes provisions for work injury compensation, and strengthens the responsibilities of platform workers and operators to prevent injuries. This will require amendments to the Work Injury Compensation Act 2019 and the Workplace Safety and Health Act 2006.

Amendments to the IRA and the TDA are also proposed under the Bill to empower platform workers by permitting them to join representative bodies which act in a similar manner to trade unions. While platform workers will still not be permitted to form trade unions, as they will not be recognised as employees, it should be noted that the National Trades Union Congress announced on 29 August 2024 that it will form new union-like bodies, Platform Work Associations, to enhance representation for platform workers if the Bill is passed. These new entities will be able to sign legally binding collective agreements with platform operators on behalf of workers. 

If the Bill is passed, there will also be a formal process to resolve collective disputes, with the Ministry of Manpower being the first port of call for conciliation before the matter is brought before the Industrial Arbitration Court.

If passed, the Bill will likely result in higher operating and compliance costs for platforms due to the new statutory obligations imposed, and has been described as a significant step forward for platform workers. Platform operators should therefore make the necessary preparations if the Bill is passed in the Singapore Parliament.