The long-awaited Gig Workers Bill 2025 (“Bill”) was tabled for first reading in the House of Representatives of Malaysia on 25 August 2025. The Bill marks a significant legislative development, aiming to extend statutory protections to gig workers, a segment of the workforce previously excluded from formal legal safeguards.
The key provisions of the Bill are summarised as follows:
(1) Definition of gig worker: According to the Bill, a gig worker is defined as a Malaysian citizen or permanent resident who earns income by providing services under a service agreement (whether such agreement is entered into orally or in writing and whether express and implied) with either:
- a platform provider; or
- any contracting entity which is not a platform provider, in respect of services such as acting, filming activities, music-related activities, aesthetics, journalism, translation, pre-natal and postnatal care or treatment, palliative, elderly and rehabilitation care and photography and videography1.
(2) Service agreements: Every service agreement entered into after the Bill comes into force must specify certain terms and conditions such as the period of the agreement, the services to be provided, the obligations of the parties, the rate and details of earnings, the method of payment of earnings and any benefits or tips and gratuity2. Existing service agreements which were lawfully entered into shall remain legally binding3, although any terms and conditions which were entered into before or after the coming into force of the Gig Workers Act (“Act”) which are less favourable than the terms and conditions provided for under the Act shall be void4 and substituted by the terms and conditions under the Act5.
(3) Non-compete clauses: The Bill expressly prohibits contracting entities from imposing clauses restraining the rights of gig workers to enter into any agreement with other parties6.
(4) Termination: The Bill states that gig workers cannot be terminated without just cause or excuse7, although what amounts to “just cause or excuse” in the context of a service agreement has not been defined.
(5) Gig workers’ associations: The Bill gives rights to gig workers to join, participate in, or establish a gig workers’ association8.
(6) Dispute resolution: The contracting entity is required to have an internal grievance mechanism (which shall be set out in the service agreement) to address any complaints from a gig worker9. If the dispute is not resolved or there is no internal grievance mechanism, the gig worker may lodge a complaint for a conciliation to the Director General for Industrial Relations, the Deputy Director General for Industrial Relations or any officer appointed under the Industrial Relations Act 1967 (acting as the “Conciliator”)10. If the Conciliator is satisfied that there is no likelihood of the dispute being settled, the Conciliator shall refer the matter to the Gig Workers Tribunal11.
(7) Gig Workers Tribunal (“Tribunal”): The Tribunal shall have jurisdiction to hear and determine any dispute or matter referred to it by the Conciliator or the Ministry of Human Resources and can grant awards it deems fair12, including consequential losses or damages13. The Tribunal’s decision can be appealed to the High Court14.
(8) Gig Workers Consultative Council (“Consultative Council”): A Consultative Council shall be established15. The functions of the Consultative Council includes, inter alia, advising and making recommendations to the Government on matters such the minimum earnings rates, the formula to be applied in relation to the minimum earnings rate and the minimum standards to be applied in respect of the different sectors16.
(9) Mandatory social security protection: Gig workers will be required to contribute to the Social Security Organisation (PERKESO) and be entitled to social security benefits in the event of work-related injuries or permanent disability17. The contracting entity shall be required, inter alia, to submit the gig worker’s information to PERKESO, ensure the gig worker is registered with the Self-Employment Social Security Scheme and implement the mandatory contribution deduction from the gig worker’s wages18. This requirement only applies to contracting entities which are platform providers19.
(10) Occupational safety and health: Contracting entities (other than individuals20) now have obligations in respect of the health and safety risks posed to the gig workers. This includes conducting risk assessments of hazards at work, determining and implementing appropriate measures for risk control and ensuring that the gig workers have adequate information and training and are not exposed to safety and health risks21. The contracting entity will also be required to notify the Director General of Occupational Safety and Health of any occupational accident or occupational diseases occurred while the gig worker is performing the service22.
What’s Next?
Companies should assess whether their arrangements with any individuals (who are not employees) fall under the wide definition of gig workers. For example, under the current drafting of the Bill, companies that are not platform providers that enter into service agreements with individuals to provide services such as acting, filming activities etc (even if on a one-off basis) would be regarded as a contracting entity. If the service agreement comes within the scope of the Bill, companies will need to consider their obligations under the Bill such as (i) reviewing the existing service agreements and future service agreements with such individuals; (ii) collecting the data required to register the gig worker with PERKESO; and (iii) reviewing and assessing the health and safety risks and policies of the company.
Following its first reading, the Bill will proceed to be debated by the House of Representatives and will likely be amended further before it is passed into law. Nonetheless, the Gig Workers Bill 2025 is a promising step towards protecting the rights of gig workers who play an increasingly important role in Malaysia’s economy.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
Footnotes
- Section 2 of the Bill and the Schedule ↩︎
- Section 3 of the Bill ↩︎
- Section 4 and Section 9(c) of the Bill ↩︎
- Section 5(1) of the Bill ↩︎
- Section 5(2) of the Bill ↩︎
- Section 9(a) of the Bill ↩︎
- Section 8(1)(g) of the Bill ↩︎
- Section 10 of the Bill ↩︎
- Section 17(2) of the Bill ↩︎
- Section 18(3) of the Bill ↩︎
- Section 19(5) of the Bill ↩︎
- Section 33(1) of the Bill ↩︎
- Section 33(3) of the Bill ↩︎
- Section 44 of the Bill ↩︎
- Section 46 of the Bill ↩︎
- Section 47(1) of the Bill ↩︎
- Section 82 of the Bill ↩︎
- Section 83 of the Bill ↩︎
- Section 81 of the Bill ↩︎
- Section 98 of the Bill ↩︎
- Section 103(1) of the Bill ↩︎
- Section 103(f) of the Bill ↩︎
