Following the recent merger of Uber and Grab in Malaysia, this affects the relevant drivers and administrative staffs. The Social Security Organisation (Socso) has recently clarified and confirmed that drivers of ride-hailing services (ie: Uber, Grab…) are considered as self-employed, therefore NOT eligible for protection under the Employment Insurance System (EIS). This is because the loss of employment for self-employed workers (ie: Uber/Grab drivers) is difficult to prove as no party can verify the termination of their employment.

However, if you are one of the administrative employees who are affected by the merger, you may apply for EIS so long as you met the relevant criteria.

Who is Eligible for EIS?

• The EIS applies only to workers who are legitimately employed by a qualified private company under the EIS Act 2017.
• Workers are eligible for the benefits when they lose their jobs because of retrenchments, and have not been able to find new employment.

What do I need to do to receive the EIS payouts?

• You must be made unemployed under the age of retirement and claim for the EIS benefits within 60 days of losing your job.
• The benefits you might receive include: job search allowance, early re-employment allowance, training allowance and re-employment placement programme.
• If you get a job within the period of receiving the benefits, you will need to notify SOCSO within 7 days of getting the new job, or you risk being fined not more than RM 10,000, face imprisonment of up to 2 years, or both.
• SOCSO will end also your EIS benefits and recover any payouts improperly made to you if:

-You gave false information to make the claim;

-You find a new job while getting the Job Search Allowance;

-You commit a crime.