In a move that raises concerns about the rights of workers in the freelance sector, the executive director of the Malaysian Social Security Organization, Mohammad Azman Aziz Mohammad, announced that seven out of 14 freelance platforms have yet to provide details of their workers. This delay hinders the implementation of automatic contributions stipulated in the Freelance Workers Act 2025, which came into effect on March 31.
According to local reports, the platforms that have completed the registration of their workers include AirAsia Ride Sdn Bhd, Kiddocare, Eternal Meteor Sdn Bhd (GoGet), ShopeeFood Malaysia, Troopers Innovation Sdn Bhd, Fastgig Sdn Bhd, and Delivery Hero Malaysia (Foodpanda) Sdn Bhd. However, only Fastgig Sdn Bhd has managed to complete both the worker registration and the automatic contribution process at a rate of 1.25%.
Details of the Situation
While participating in the Ziarah Prihatin program, Mohammad Azman questioned the reasons behind the delay of the seven platforms in providing the required information, noting that this delay makes it difficult for the organization to assist workers in cases of accidents or fatalities. He stated, "What is so difficult about this? What is their excuse? Isn't the welfare of workers important?"
These statements come at a sensitive time, as many workers in the freelance sector face significant challenges, especially amid the current economic conditions. Mohammad Azman highlighted the case of taxi driver Jalani Sabieh, who was involved in a horrific car accident and was eligible for social security benefits despite his subscription having expired before the incident.
Background & Context
The Freelance Workers Act 2025 is designed to protect the rights of workers in this growing sector, which includes a large number of individuals relying on freelance platforms as their primary source of income. The law requires service providers to register workers and implement automatic contributions, reflecting the importance of providing social protection for this group.
Freelance platforms are becoming an increasingly important part of the global economy, offering flexible job opportunities for many individuals. However, non-compliance with the laws can exacerbate labor issues and increase the risks of not receiving basic rights.
Impact & Consequences
The delay in registering workers on freelance platforms can lead to negative consequences for the social security of workers. In the event of accidents, workers may find themselves unprotected, increasing psychological and financial pressures on them. Additionally, non-compliance with the laws may lead to a loss of trust between workers and service providers, negatively impacting market stability.
Moreover, the failure to provide the required information may reflect weaknesses in platform management, threatening workers' rights and increasing risks associated with freelance work.
Regional Significance
The situation highlights the critical need for regulatory compliance in the freelance sector, as it directly impacts the livelihoods of many individuals. Ensuring that platforms adhere to the Freelance Workers Act 2025 is essential for fostering a fair and secure working environment.
In conclusion, the ongoing delays in worker registration not only jeopardize individual rights but also undermine the integrity of the freelance sector as a whole, necessitating immediate action from both the government and the platforms involved.