Only Singaporeans, PRs can do platform work in Singapore: Koh Poh Koon on delivery platform work

Summary of YouTube Video Transcript

Key Concepts:

• Platform work (food and parcel delivery)
• Platform operators
• Platform workers (Singaporeans and PRs)
• Foreign workers (work permit holders)
• Outsourcing (B2B arrangements with logistics companies)
• Employment of Foreign Workers Act (EFMA)
• National Delivery Champions Association (NDCA)
• Platform Workers Trilateral Group
• Facial verification
• Debarment
• Enforcement operations
• Dependency Ratio Ceiling (DRC)

1. Legality of Platform Work and Foreign Worker Involvement

• Only Singaporeans and Permanent Residents (PRs) can legally perform platform work. The Ministry of Manpower (MOM) does not issue work passes to foreigners for this type of work.
• It is illegal for foreigners to impersonate local platform workers or use their accounts.
• Platform operators can outsource delivery jobs to third-party logistics companies that employ foreigners with valid work passes, subject to the industry's Dependency Ratio Ceiling (DRC).
• Foreign workers employed by logistics companies receive a fixed monthly salary and are not paid per job by the platform operator. They can only work for a single employer.

2. Enforcement Actions and Findings

• MOM follows up on complaints, including those from NDCA, and conducts enforcement operations at hotspots to detect illegal foreign platform workers.
• During recent operations, 644 delivery workers were checked, and only four foreigners (less than 1%) were found working illegally. 22 foreigners were legitimate work pass holders.
• The Platform Workers Trilateral Group has released recommendations to eliminate illegal platform work by foreigners.

3. Penalties for Illegal Platform Work

• Platform operators are to notify MOM if they suspect foreigners are misusing platform worker accounts.
• If an offense is established under the Employment of Foreign Workers Act (EFMA), major platform operators have agreed to debar the local platform worker who abetted the foreigner for a minimum of 24 months. Some companies permanently debar offenders.
• The foreigner performing platform work illegally faces a fine of up to $20,000, imprisonment of up to two years, or both. They may also be barred from entering or working in Singapore.
• Locals who abet foreigners face the same penalties.

4. Addressing Concerns about Outsourcing

• Food delivery platform operators that outsource jobs have agreed to:
  • Provide more clarity and assurance to platform workers about their outsourcing practices.
  • Encourage platform workers to head to high-demand areas to reduce the need for outsourcing.
  • Require outsource companies to submit foreign workers' work pass documentation and conduct audits where work is outsourced through their app.
• These recommendations are scoped to food delivery platforms, as outsourcing is common in parcel delivery.

5. Concerns Raised by Members of Parliament

• A Member of Parliament (MP) noted feedback from delivery riders about seeing more foreigners performing delivery platform work.
• The MP inquired about measures to ensure fleet partners (business-to-business arrangements between platforms and logistics operators) have the necessary quotas to employ foreigners and that these foreign delivery riders are paid full wages, not on a job-by-job basis.
• Another MP asked if MOM intends to track the number of foreigners in the food delivery space due to outsourcing and if these figures can be shared.
• The MP also questioned if the recommendation for platform operators to conduct audits of outsource workers and share work pass documentation is too passive.
• Finally, the MP inquired about the number of infringements reported by platform workers before July and the number of enforcement actions carried out prior to July.

6. MOM's Response to Concerns

• MOM works closely with NDCA to identify hotspots and take enforcement actions.
• When platform operators onboard outsource workers onto their app system, they usually check for legitimate work permits.
• For direct B2B outsourcing, the logistics company decides how to allocate work among its workforce (local or foreign), as these workers are paid a fixed monthly salary.
• If foreign workers are not paid according to their contractual terms, they are encouraged to whistleblow.
• MOM stated that tracking the number of foreigners in the food delivery space is operationally difficult due to the dynamic nature of outsourcing arrangements.
• Many platform operators stipulate that outsourced work should be performed by Singaporeans or PRs where possible.
• MOM emphasized the need to balance enforcement with the efficiency of service delivery.

7. Facial Verification and Deterrence Measures

• MOM is asking operators to implement more upstream verification, including facial verification of workers as they turn on the apps.
• Operators are committed to notifying MOM of suspicious activity on accounts.
• If a violation is established, MOM will notify all other platform operators, who will undertake a minimum debarment of 24 months. The individual will also be permanently blacklisted from registering another account.
• These measures aim to reduce administrative burdens on companies while deterring illegal users.

8. Enforcement Challenges and a Balanced Approach

• Excessive enforcement action at hotspots can create bottlenecks and delays for workers and consumers.
• A more sustainable approach involves operators conducting more frequent random facial verification checks and MOM taking targeted actions based on suspicious activity.
• MOM believes this balanced approach will reduce demands on operators and logistics companies while sending a strong signal to deter illegal users.

9. Data and Statistics

• During recent enforcement operations, 4 out of 644 delivery workers checked were found working illegally.
• MOM receives approximately 70 complaints a year regarding illegal foreign platform workers.

10. Conclusion

The Singapore government is actively addressing the issue of foreigners illegally performing platform work, balancing enforcement with the need to maintain efficiency and minimize burdens on businesses. Key strategies include stricter verification processes, penalties for offenders, and collaboration with industry stakeholders like NDCA. While challenges remain in tracking the exact number of foreign workers in the space due to the dynamic nature of outsourcing, the focus is on deterring illegal activity and protecting the livelihoods of local platform workers.