In a landmark step in shaping future work in Malaysia, the Gig Workers Bill 2025 (“Bill”) was passed in the Dewan Rakyat (House of Representatives) on 28 August 2025. The Bill will next be presented to the Dewan Negara (Senate), and if passed, for Royal Assent. Thereafter the Bill will become law upon its being gazetted and will come into operation on a date to be appointed by the Minister of Human Resources.

The Bill aims to protect the rights of a gig worker in Malaysia and to provide for the duties of a contracting entity and to regulate terms and conditions of the service agreement entered into between the contracting entity and the gig worker. The Bill also provides a dispute resolution mechanism and establishes the Consultative Council (“Council”) and the Gig Workers Tribunal (“Tribunal”) whose functions are summarised below.

As the proposed new law will have significant implications for gig workers and businesses in Malaysia that engage gig workers, we highlight 10 salient provisions below:
 
Key Features of the Bill

1.

Key Definitions   The Bill introduces statutory definitions for “gig worker”, “contracting entity”, “platform provider” and “service agreement”.   A “gig worker” means an individual who is a citizen or permanent resident of Malaysia, who enters into a service agreement with a contracting entity for the performance of services and receives earnings for the service. These include: services performed with any contracting entity who is a platform provider; or services specified in the Schedule to the Bill with any contracting entity who is not a platform provider such as acting, filming activities, music-related activities, aesthetic, translation, journalism, prenatal and postnatal care or treatment, palliative, elderly and rehabilitation care, and photography and videography.  A “contracting entity” means: an individual; any person, including a body of persons incorporated or registered under any written law; or any platform provider,  who engages a gig worker under a service agreement for the performance of services in exchange for payment of earnings.   A “platform provider” means any digital intermediary system provider who connects the service by a gig worker to a service user.        A “service agreement” means any agreement, whether oral or written, and whether express or implied, between a contracting entity and a gig worker who provides a service in Malaysia in exchange for earnings but does not include an employment contract.

2.

Terms and Conditions of Service Agreement to be specified   The Bill stipulates that every service agreement entered into between a contracting entity and a gig worker shall specify the following terms and conditions: parties to the agreement; period of the agreement; services to be provided by the gig worker; obligations of the parties; rate and details of earnings of the gig worker; method of payment of earnings; and any gig worker’s benefits or tips and gratuities, if any.  The Bill further provides that any less favourable terms than those prescribed in the Bill are void and shall be substituted with the terms as provided under the Bill.

3.

Rights of Gig Workers   The Bill also provides, amongst others, that a gig worker: shall be informed of the agreed terms of the service agreement and service to be performed; shall be informed of the agreed rate and details of earnings before the gig worker agrees to perform the service; shall be informed of the method of payment of earnings, tips and gratuities, and other benefits and shall receive the earnings within the agreed period (or where the same is not stipulated in the service agreement, within seven days from the date of completion of service); shall be consulted and informed if there is any variation of terms; shall be provided with a dispute resolution mechanism; has the right to enter into any agreement with parties other than the contracting entity; cannot be discriminated against in relation to conditions of work, assignment of service or payment of earnings; and shall not be terminated without just cause or excuse.  Additional protections for platform-based workers include transparency and the right to human review for automated monitoring and decision-making systems through electronic means.

4.

Dispute Resolution Mechanism   Under the Bill, a gig worker may lodge a complaint of a dispute in writing to a contracting entity (other than an individual or a sole proprietor). Upon receiving the said complaint, the contracting entity shall initiate and resolve the dispute by way of an internal grievance mechanism within 30 days from the day the complaint is lodged.   Where amongst others, the complaint of dispute is against a contracting entity who is an individual or a sole proprietor, or the gig worker is dissatisfied with the decision of the contracting entity, or the dispute is not resolved after the 30-day period has lapsed, the gig worker may lodge a complaint of dispute for a conciliation before the Director General for Industrial Relations, Deputy Director General for Industrial Relations and any appointed officer (“Conciliator”). If no settlement is reached between the parties, the matter will be referred to the Tribunal.

5.

Establishment of the Tribunal   The Bill provides for the establishment of the Tribunal, where the President or Deputy President thereof, or any member of the Tribunal selected by the President, shall hear and determine any dispute or matter referred to it by the Conciliator or the Minister of Human Resources. All hearings before the Tribunal shall be open to the public.   Under the Bill, the Tribunal shall issue its award, where practicable, within 30 days from the last day of the hearing. The said award shall be binding on all parties to the proceedings and be deemed to be an order of the Sessions Court. Non-compliance with an award may result in criminal penalty, including a fine of up to RM50,000 or imprisonment for a term not exceeding two years or both.

6.

Establishment of the Council The Bill also establishes the Council whose function is to advise and make recommendations to the Government on, amongst others, the minimum earnings rates, the formula to be applied, and the minimum standard to be applied in accordance with sectors, regional areas and type of gig worker or services.

7.

Supervision and Enforcement The Bill empowers the Director General of Labour to, amongst others, supervise compliance and enforce awards of the Tribunal. The investigation or enforcement officers appointed by the Director General of Labour shall have the power to, amongst others, enter in any premise and inspect any document, seize any document, record or other relevant thing and investigate the commission of any offence under the Bill.

8.

Social Security Protection The Bill requires platform providers (but not other contracting entities) to register gig workers under the Self-Employment Social Security Act 2017 and make mandatory deductions on the gig workers earnings and remit contributions to the social security scheme on their behalf. Failure to pay any contribution or deduct the contribution is an offence and on conviction, may result in imprisonment for a term not exceeding two years or a fine not exceeding RM10,000 or both. The Bill does not appear to impose an obligation on platform providers to make social security contributions for the benefit of their gig workers.

9.

Occupational Safety and Health   The Bill requires contracting entities to, amongst others: conduct risk assessment by evaluating the risks to safety and health arising out of hazards at work to determine and implement appropriate risk control measures; ensure adequate safety measures for any equipment and facility; ensure that the gig worker is not exposed to safety and health risk from work arrangements or processes; ensure that the gig worker has adequate information, training, instruction and supervision; develop and implement emergency procedures; and notify the Director General of Occupational Safety and Health of any occupational accident or diseases that may arise while the gig worker is performing his service.

10.

Saving of Existing Service Agreements Existing service agreements between contracting entities and gig workers entered into before the Bill comes into force will continue in force for their specified duration. However, if any terms and conditions (agreed before or after the coming into force of the Bill) are less favourable to the gig worker than those provided under the Bill, those terms are void and shall be substituted with the terms and conditions provided under the Bill.

Comments
 
The Bill aims to protect the well-being of about 1.2 million gig workers in Malaysia. Human Resources Minister, Steven Sim, said, “We are the 16^th country in the world to have such legislation, which means we are at the forefront in empowering this sector…. It will certainly give confidence to foreign investors because we respect labour practices with international standards.”¹
 
The Bill has been hailed by industry groups such as the Malaysian E-hailing Coalition (“GEM”) and the Malaysian Professional Film Workers Association as a significant step forward in safeguarding the rights of gig workers.² The GEM described it as “a bulwark against inequities that have haunted workers – unstable incomes, lack of social protection and systemic exploitation by vested interests”.³
 
However, MY Mobility Vision has cautioned that the Bill contains structural weaknesses that could potentially undermine its objectives and skew outcomes against gig workers.⁴
 
With the Bill poised to become law in the near future, businesses that are dependent on gig workers should start reviewing their current practices for compliance and to ensure that they continue to remain well-positioned for when the Bill comes into effect.
 
The Bill can be accessed here.
 
 
Alert by Foo Siew Li (Partner) and Eunice Soo (Associate) of the Employment Law Practice of Skrine.
 
 

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