Zaqy Mohamad on protection for contract drivers after PWM expansion

The Progressive Wage Model was recently expanded to cover drivers on a contract of service. In Parliament on Wednesday (Mar 22), MP Leon Perera asked how these drivers will be protected if their employers terminate their contracts only to rehire them as platform drivers to save costs. In response, Senior Minister of State for Manpower Zaqy Mohamad said if an employer terminates an employee’s contract of service but engages their services under conditions that effectively make them an employee, this is a misclassification of an employee to avoid employer obligations. Such cases will be investigated and action taken if warranted. Mr Zaqy added that in a tight labour market, employers must consider that employees can choose to leave if they are unfairly treated or can enjoy greater job security elsewhere.