Malaysia

E-hailing drivers not considered employees, court rules

Judge dismisses Loh Guet Ching’s judicial review application seeking right to be heard before industrial court

Updated 5 years ago · Published on 10 Jul 2021 12:30PM

E-hailing drivers not considered employees, court rules
Grab says e-hailing drivers are not employees or workmen within the strict definition of the Industrial Relations Act. – AFP pic, July 10, 2021

KUALA LUMPUR – The high court (appellate and special powers) has ruled that e-hailing drivers are not employees of the various ride-sharing and delivery services, including MyTeksi Sdn Bhd, or better known as Grab.

An e-alert by T. Thavalingam & Co said justice Datuk Ahmad Kamal Md Shahid yesterday dismissed a driver’s judicial review application seeking the right to be heard before the industrial court.

“The applicant, Loh Guet Ching, filed a representation over unfair dismissal with the Industrial Relations Department, seeking reinstatement. The human resources minister, in exercising his discretion, declined to refer the matter to the industrial court.

“Dissatisfied with the outcome, the applicant proceeded to file a judicial review application seeking to quash the decision of the minister, and applied for a further order to compel the minister to refer her claim to the industrial court.

“At the high court, the applicant (through her counsel Ng Kian Nam) in essence contended that she has the right to recourse at the industrial court, and the minister should have referred the matter.”

In its defence, Grab said e-hailing drivers are not employees or workmen within the strict definition of the Industrial Relations Act 1967.

The company’s legal representatives Datuk Thavalingam C. Thavarajah and Rebecca Sonali Alfred argued that the contract is a commercial agreement, and that the minister was right in not referring the matter to the industrial court.

They pointed to a recent decision by the United Kingdom Supreme Court in the case of Uber BV and others (Appellants) v Aslam and others (Respondents) (2021) UKSC 5, and highlighted the fact that in New Zealand, the employment court has ruled that such a driver is not an employee.

“The minister took the position that having examined the material placed before him, the applicant’s case did not satisfy the threshold requirements for the same to be referred to the industrial court,” said the alert. – The Vibes, July 10, 2021

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