Cabinet approves new rules to regulate platform work

A new legislative framework to regulate platform work has been approved by cabinet, Prime Minister Robert Abela said during a pre-budget meeting with Union Ħaddiema Magħqudin (UĦM).

During the meeting, Abela said that the framework was approved by cabinet over the past few days, with more details on the rules to be presented in the coming days.

He told the union that the new rules will regulate work contracts and ensure that the salary of platform workers is never below the minimum wage. The rules will also establish rights such as overtime and sick leave for platform workers.

Abela went on the emphasise “the need for courage when taking decisions” after the Department for Industrial and Employment Relations finalised a structured survey on platform work.

Platform work is a growing employment. Usually, platform workers service companies offering digital interfaces etween consumers and businesses, such as food delivery workers. Their employment is directly linked to and dictated by a digital platform.

In Malta, platform work is largely dominated by taxi and food delivery companies like Bolt and Wolt. MaltaToday had revealed how both companies rely on recruitment agencies to secure a poorly-paid labour supply, while these agencies take 30-50% salary cuts from their couriers.

Last year, the European Commission proposed a directive to improve platform workers’ working conditions, the first legislative attempt to regulate a growing but still untouched market.

At the heart of the Commission’s proposal is the so-called rebuttable presumption of employment, which means platform workers automatically classify as employees unless the platform proved otherwise.  Platforms will have to declare their workers’ contracts with the relevant social security body.

In case the declared contracts are for independent status, the social security body will have to verify them against the presumption of employment. Labour inspectors will also have to double-check the nature of the working relationship when carrying out their checks.

UĦM CEO Josef Vella laid out several proposals to the government delegation during the meeting.

He welcomed the news of new platform work rules, but added that government’s cost of living allowance (COLA) should not be treated as part of a wage increase negotiated by unions in collective agreements.