PETALING JAYA, March 29 — Drivers of ride-hailing services are not eligible for protection under the Employment Insurance System (EIS), according to the Social Security Organisation (Socso).

In a statement to Malay Mail, Socso EIS Chief Datuk Mohd Sahar Darusman said the drivers are considered self-employed and therefore not qualified for the scheme.

The EIS applies to workers who are legitimately employed by companies with the appropriate qualification under the EIS Act 2017.

"As such, self-employed workers are not covered under the EIS as mentioned in the First Schedule of the EIS Act 2017.

"This is because the loss of employment for self-employed workers is difficult to prove or cannot be determined as no party can verify the termination of employment,” said Mohd Sahar.

Mohd Sahar’s comments came following the merger of Uber and Grab on Monday, which affects mainly Uber administrative staff.

The merger also led some Uber drivers to question whether they would be absorbed into Grab’s ride-hailing platform.

As such, Mohd Sahar added that Uber administrative employees, who might be affected by the merger, could apply for EIS so long as they met the criteria.