January 16th, 2025 | Sterling

Platform Workers Act: Changes to Hiring Gig Workers in Singapore Starting 1 Jan 2025

With shifting regulations, new market entrants, and ever-changing labour availability, the global gig industry is constantly in flux.

Singapore’s gig industry is no different. With an estimated 70,500 gig workers representing 3% of the workforce, gig labour directly affects the lives of many in Singapore.

Are there any changes expected for Singaporean gig workers in 2025?

Yes, a landmark piece of legislation called the Platform Workers Act came into effect in January.

Passed in September 2024, the Act places ride-hailing drivers and freelance delivery workers in a distinct legal category and affords them greater protections, including:

Work injury compensation – Platform workers will be entitled to the same scope and level of work injury compensation as employees.

Increased Central Provident Fund (CPD) contributions – Platform workers born after 1 January 1995, along with older workers who opt in, will receive an increase in contributions paid into their CPF accounts. Contributions are to be gradually increased over time to match those of employees.

Enhanced representation – Platform workers will be able to bargain collectively through union-like representative bodies.

These provisions came into effect on 1 January 2025.

How does the Platform Workers Act change the gig industry?

The Act significantly affects the gig industry in Singapore by requiring platform operators to take on increased responsibility for their workers. The shift makes Singapore “one of the first countries in the world to provide statutory protections for platform workers as a distinct group,” according to Senior Minister of State for Manpower Koh Poh Koon.

The legislation may also act as a lightning rod for other countries to review their regulations around platform work and the gig economy, with the potential for other nations to similarly increase the duties owed to gig workers.

What does this mean for platform operators and companies who hire gig workers?

Companies need to identify whether or not they will fall under this legislation as a “platform operator.” If so, they will need to be abreast of the new requirements under the Act and the potential additional costs for which they may be liable.

From a hiring perspective, the roll out of the Platform Workers Act means that platform operators may seek to tighten their hiring practices and conduct more thorough due diligence when onboarding gig workers, to minimise the risk of a bad hire

Enhanced hiring practices by gig platforms could include conducting background screening on new gig workers, such as criminal background checks, identity verification, as well as right to work checks, to ensure they are suitable for gig work.

For example, platform operators offering delivery services could look at conducting criminal background checks on prospective delivery drivers for past driving offences or on delivery workers for past criminal offences.

Hiring teams may want to consider implementing additional background checks, such as health screening and reference checks, on prospective gig workers. This may enable businesses to mitigate the risk of potential work injuries, which reduces the need for payment of work injury compensation.

These recommended enhanced onboarding processes may help platform operators to remain competitive and cost-effective in the long-term whilst providing a safer environment for their employees.

For platform operators and companies hiring gig workers in 2025, a well-informed gig hire will translate into safety, security, and peace of mind.

I’m a platform operator. Who can I work with to improve my gig worker hiring in 2025?

Sterling, a First Advantage Company is an experienced global supplier of background checks and identity services to the gig industry. We leverage data and technology to enable our clients to hire smarter and onboard faster.

We can provide a tailored suite of background checks to platform operators seeking to implement an enhanced hiring process for gig workers. This will assist and enable companies to make well-informed gig hiring decisions and mitigating additional risk brought on by the requirements of the Platform Workers Act.

This content is offered for informational purposes only. First Advantage is not a law firm, and this content does not, and is not intended to, constitute legal advice.  Information in this may not constitute the most up-to-date legal or other information.

Readers of this content should contact their attorney or lawyer to obtain advice concerning any particular legal matter.  No reader, or user of this content, should act or refrain from acting on the basis of information in this content without first seeking legal advice from counsel or lawyers in the relevant jurisdiction.  Only your individual attorney or legal advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this content does not create an attorney-client relationship between the reader, or user of this presentation and First Advantage.

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