How will the Bill classify gig workers under the Employment Act 1955?

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The Bill Proposes Six Criteria to Define Gig Workers as Employees Under the Employment Act 1955

A forthcoming amendment Bill to the Employment Act 1955 will introduce six specific criteria to determine if a gig worker should be classified as an employee. This legislative move aims to extend the rights and privileges typically afforded to formal employees to those working in the gig economy, including benefits such as health insurance and pension contributions. The proposed changes also intend to broaden the definition of an employer based on these same criteria.
Control Over Work and Hours of Work

Under the proposed Section 101C, a worker will be considered an employee if the manner in which they perform their work is subject to the control or direction of another person. Similarly, if the hours of work are also under the control or direction of another entity, the worker will fall under this employee classification.
Provision of Tools and Business Integration

The Bill outlines that a gig worker will be deemed an employee if they are provided with the necessary tools, materials, or equipment by another party to execute their work. Furthermore, if the work performed constitutes an integral part of another person’s business, this will also contribute to the classification as an employee.
Sole Benefit and Income Majority

A key criterion for classification as an employee is that the work performed must be solely for the benefit of another person. Additionally, if the payment received for gig work constitutes the majority of the worker’s income, they will automatically be recognised as an employee under the amended Act.
Broader Definition of Employer

The proposed amendment will also expand the definition of who qualifies as an employer. By applying the same set of six criteria used to define an employee, the legislation will encompass individuals or entities that control or direct the manner or hours of work for another person, thereby classifying them as an employer.

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How will the Bill classify gig workers under the Employment Act 1955?

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