KUALA LUMPUR: Minimum wage subsidy does not apply to gig economy workers since the group is not defined as employees under the Labour Act 1955 (Act 265),Sabah Labour Ordinance and Sarawak Labour Ordinance.
Deputy Human Resources Minister Datuk Awang Hashim said at the moment, there were no records or labour cases filed which can be used as a "test case" to enable gig economy workers to enjoy the same benefit as employees defined under labour laws in the country.
"The agreed gig workers system and contract of service resulted gig economy workers are not subjected to the National Wages Consultative Act 2011 (Act 732) and the the Minimum Wage Order (PGM) 2020," he told the Dewan Rakyat today.
He was responding to questions from Datuk Seri Dr Dzulkefly Ahmad (Pakatan Harapan - Kuala Selangor) and Datuk Seri Salahuddin Ayub (PH - Pulai) who asked the government to state its plans to impose minimum wage in the gig economy industry business platform as implemented in the United Kingdom (UK).
Awang, however, said the government through the Self-Employment Social Security Act 2017 provides social security protection to self-employed groups, including gig economy workers such as food delivery and e-hailing services, if they contribute under the Act.
Taking the Uber versus Aslam case in the UK as an example, Awang said gig economy workers in that country were protected with minimum wage following dissatisfaction over delivery payment which constantly changed.
Awang also stressed that Act 732, PGM 2020 is applicable to all workers in the private sector except for domestic servants as defined under Act 265 as well as labour ordinances in Sabah and Sarawak.
According to these laws, Awang said, workers are defined as individuals who are bound in a contract of service with the employer.
To a question from Ahmad Hassan (Parti Warisan Sabah - Papar) on the new policy and programme to create and generate side income while retaining employment in Sabah, Awang said the government had rolled out several initiatives in order to create employment opportunities which could be offered to all job seekers.
"In a situation where the economy is still in the recovery process, the government through the Social Security Organisation introduced a hiring incentive programme, mobility assistance and training programme under the National Economic Recovery Plan (Penjana)," he said. - Bernama