Driver protection law raises cost concerns

Driver protection law raises cost concerns

A Seize Meals supply driver in Bangkok. Somchai Poomlard

A invoice aimed toward defending unbiased staff and bettering their high quality of life has made on-line meals supply platforms nervous as they fear about increased prices and having to place the burden on clients.

The invoice is being mentioned within the Council of State, the authorized arm of the federal government.

One of the vital necessary parts of the invoice is the institution of a fund that goals to enhance and shield the standard of lifetime of freelancers.

The cash within the fund can be utilized for quite a lot of functions, together with sponsoring accident and medical insurance, and offering advantages and loans to self-employed individuals.

Based on the laws, freelancers and their employers should contribute to the fund with each wage cost. The contribution charge was decided as 3% of the wages in line with the most recent model of the draft regulation.

Employers are required to take deductions from freelancers’ wages to pay staff’ contributions.

The laws can also be meant to help a grievance course of and negotiate agreements for freelancers.

Based on the Council of State, open periods of the invoice will proceed till the top of this month.


Isriya Paireepairit, vp of public relations at meals supply operator Line Man Wongnai, mentioned the character of the business is advanced and includes many individuals, together with clients, eating places and driver companions.

“Each new regulation that creates an imbalance and favors one facet will enhance the burden on clients.”

“Platforms face losses and if there’s a regulation that can enhance prices, they might want to extend supply prices because the load is loaded to clients,” Isriya mentioned, including that some operators could need to exit the market.

With fewer operators, customers can have fewer decisions, and eating places can have decrease incomes, whereas fewer jobs will likely be out there for drivers, he mentioned.

The invoice permits the institution of a self-employed group of no less than 5 members who will profit from social rights in accordance with the provisions of the regulation. Not less than 15 teams can kind an unbiased staff’ organisation.

Based on Isriya, no less than 75 drivers can kind an unbiased physique to lodge complaints and negotiate with platforms.

Nevertheless, this group can not symbolize the opposite tons of of 1000’s of drivers offering the companies, he mentioned.

He mentioned that whereas the invoice was well-intentioned, there was no clear indication of how the fund may very well be managed to help staff’ well-being.


Worachat Luxkanalode, nation head of on-line meals supply platform Seize Thailand, mentioned the platform works intently with momentary staff and understands the significance of the corporate’s draft freelance work regulation.

“Our companions in Thailand are lined by their platform-wide entry to free accident insurance coverage protection, on-line coaching help, and mortgage companies,” he mentioned.

He mentioned the corporate has seen the draft regulation and is assembly with the Ministry of Labor and the State Council Workplace to offer their enter and share greatest practices in different international locations the place the agency operates.

“We consider it is very important contemplate the various wants of freelancers. For instance, our companions work with us for quite a lot of causes: some select the choice of versatile working preparations, whereas others search to generate extra revenue.” mentioned.

“We additionally consider that any regulatory adjustment or new framework ought to steadiness the safety of freelancers with the pursuits of different stakeholders within the ecosystem.

“That is to forestall unintended penalties that would hurt this group of freelancers we are attempting to guard, together with the chance of upper operational prices and utility necessities that would influence freelancer availability and shopper demand and in the end scale back freelancers incomes alternatives.”

He mentioned new laws must be carried out progressively to assist all stakeholders, together with freelancers, adapt to the modifications and forestall any shocks to the ecosystem.


Mongkol Yangngam, an operator of the Freedom Rider Union Fb group, mentioned the invoice supplies a channel for receiving complaints from meals supply drivers.

The invoice additionally mentioned it will see the formation of unbiased investigators who might scrutinize working circumstances and step in to resolve disputes.

He mentioned that if a driver is suspended by a platform, the scenario will likely be reviewed inside seven days and they are going to be eligible for compensation if they’ve finished nothing mistaken.

“For the draft, freelancers can sue the platforms by means of the Labor Courtroom with out having to pay legal professionals, not like the present system the place they need to go to the Civil Courtroom of First Occasion when confronted with unfair contracts,” he mentioned.

Mongkol mentioned the invoice is necessary for freelancers, giving tremendous apps extra management over their on-line platforms.

However he mentioned laws continues to be very unclear on how the federal government will use the fund to enhance the standard of lifetime of freelancers.

“The fund ought to solely gather contributions from platforms, not from drivers or freelancers,” he mentioned. “The fund ought to solely be used to compensate freelancers when their employers breach contracts or shut their companies.”


Suthikorn Kingkaew, a digital economic system knowledgeable, agreed that the invoice supplies higher welfare and safety for freelancers.

However he mentioned any regulation should steadiness the pursuits of all stakeholders within the ecosystem.

If platforms face higher value burdens, they’re extra prone to move the fee on to clients and eating places, he mentioned.

“The regulation must steadiness all gamers within the ecosystem to mitigate the damaging influence on platforms that need to move the fee on to eating places and clients,” he mentioned.

He added that the regulation ought to have a grace interval of greater than 4 months, as stipulated within the invoice.

“It is a pretty new subject within the sharing economic system and we should have a sandbox or time to organize,” Suthikorn mentioned.

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