The gig economy is able to provide many workers the freedom and flexibility to earn extra money or even make it their full-time job. That being said, this particular industry leaves many vulnerable to unforeseen circumstances and an unstable income stream.
AirAsia, which is heavily investing in its super app that offers food delivery, parcel delivery, ride hailing, and more, has announced that it will start employing its delivery riders as full-time “Allstar” employees, a first for the region. This is apparently to provide its p-hailing workers more stability and, as Capital A CEO Tony Fernandes puts it, “the right thing to do”.
Starting from now, full-time AirAsia Food and xpress riders will enjoy a suite of benefits such as medical coverage that extends to their spouse and children, annual leaves, travel benefits such as 90% discounts on AirAsia flights, free rider training, and personal accident coverage. Of course, they will also receive statutory benefits such as EPF and SOCSO contributions.
On top of this, each employee will receive a guaranteed monthly salary of RM3,000 with a minimum of eight working hours per day. Keep in mind that that figure is only the base salary, with the full-time riders also earning additional incentives based on their performance.
It’s important to note that becoming a full-time employee is optional as individuals still have the option to become part-time riders instead to enjoy even more flexibility. Obviously, those who opt for the part-time role will not get the benefits such as paid annual leave. However, many “self-employed” riders are protected under SOCSO’s SPS Lindung scheme.
Tony revealed that the company has already hired 20 riders as full-time employees and he hopes that all the company’s riders will choose this option. While it is starting out in Malaysia, the CEO said that the company plans to eventually roll out the initiative to all countries it operates it, though no timeline was given.