Gig Workers Bill 2025

On 9 September 2025, the Malaysia Senate passed the Gig Workers Bill 2025 (Bill), marking a pivotal moment in the regulation of gig workers and businesses in Malaysia. The Bill is currently awaiting royal assent, after which it will become law once gazetted and take effect on a date set by the Minister of Human Resources.

Key Highlights

The Bill seeks to introduce a comprehensive legal framework and safeguard the rights of gig workers, define the responsibilities of contracting entities, regulate the terms of service agreements and create new mechanisms for resolving disputes.

Statutory Definitions

The Bill introduces statutory definitions for several key terms, including:

• A "gig worker" is defined as a Malaysian citizen or permanent resident who performs services under a service agreement and receives payment. This includes services via digital platforms and specific types of work listed in the Bill's Schedule, such as creative, care, and media-related services.
• A "contracting entity" is defined as any individual, person, including a body of persons incorporated or registered under any written law; or 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" is defined as any agreement, whether oral or written, express or implied, between a contracting entity and a gig worker who provides a service in Malaysia.

Gig Worker Rights

Section 8 of the Bill sets out the various rights of gig workers. Amongst others, gig workers must be informed of the terms of service and payment details before accepting work. Gig workers shall also have the right to:

• be consulted on changes;
• receive their earnings within the agreed period, and receive earning slips if requested;
• have access to a dispute resolution mechanism;
• work and enter into agreements with other parties;
• join, participate in or establish gig workers' associations;
• be protected from discrimination and termination without just cause or excuse

Gig workers who provide services for a platform provider are also entitled to transparency and human oversight in automated decision-making.

Mandatory Service Agreement Terms

Section 3 of the Bill further provides that every service agreement between a contracting entity and a gig worker must specify details of the parties to the agreement, duration, nature of services to be provided, earnings and payment methods, and rights to benefits, tips, and gratuities (if any).

Any terms less favourable than those prescribed by the Bill will be void and automatically replaced with the minimum statutory requirements prescribed under the BIll. This applies even if the service agreement is entered into before the Bill's commencement.

Social Security Contributions

Under the Bill, Platform providers are required to register gig workers under the Self-Employment Social Security Scheme and make mandatory deductions and contributions from gig workers' earnings to the Social Security Organisation on their behalf. Failure to comply may result in penalties.

However, the Bill does not impose an obligation on platform provides to make social contributions for the benefit of their gig workers.

Occupational Health and Safety

Under the Bill, contracting entities will be subject to occupational health and safety obligations and required to:

• conduct risk assessment and implement appropriate risk control measures;
• ensure adequate safety measures for any equipment and facilities;
• ensure safe working conditions for gig workers, including developing and implementing emergency procedures
• report any occupational accident or diseases that may arise during gig workers' performance of services.
• assess risks, ensure safe working conditions, provide training, and report workplace accidents or illnesses.

Dispute Resolution and Gig Workers Tribunal

Part IV of the Bill establishes the Gig Workers Tribunal, which is designed to provide an accessible, affordable alternative to court proceedings for resolving disputes. The Bill also introduces a multi-tier dispute resolution mechanism for gig workers. Under the new mechanism:

• a gig worker can lodge a complaint of a dispute in writing to a contracting entity (excluding individuals or sole proprietors), who must resolve the dispute via internal grievance mechanisms within 30 days.
• If the dispute is unresolved, the matter may be escalated to the Industrial Relations Department or Ministry of Human Resources for conciliation, and subsequently to the Gig Workers Tribunal if necessary.

The Gig Workers Tribunal has the power to issue legally binding awards, including that a party complies with any term in the service agreement, compensation or recovery of earnings. Hearings before the Gig Workers Tribunal are public and any awards will be issued within 30 days of the hearing, where possible. Non-compliance with an award issued by the Gig Workers Tribunal may result in a maximum fine of up to RM50,000 and/or a 2 year imprisonment pursuant to Section 45(1) of the Bill.

Establishment of Consultative Council

The Bill provides for the establishment of a Consultative Council, whose function involves advising and making recommendations to the Government on key issues including minimum earnings rates and calculation formula, sector and regional-specific standards, and other regulatory matters affecting gig workers.

To ensure a balanced approach, membership of the Consultative Council will be comprised of public officials and representatives of contracting entities and gig workers.

Enforcement and Penalties

The Bill empowers the Director of General Labour to oversee compliance, investigate breaches and enforce Tribunal decisions, with investigation or enforcement officers appointed by the Director General of Labour being empowered to inspect premises, seize documents, and investigate offences.

The penalties for offences under the Bill range from fines to imprisonment. Notably, the Bill provides that if an offence is committed by a body corporate, a person who is its director, manager, secretary or officer responsible for management of the body corporate person may be charged jointly and severally with the body corporate. Such person shall be deemed to have committed the offence unless they can establish that:

• the offence was committed without their knowledge or connivance;
• they took all reasonable precautions; or
• they had exercised due diligence to prevent the commission of the offence

Key Takeaways

The Gig Workers Bill 2025 marks a transformative shift in Malaysia's approach to regulating the gig economy landscape, introducing statutory protections for approximately 1.2 million gig workers in Malaysia. Although the Bill has not received Royal Assent and is not yet in force, employers who fall within the definition of "contracting entity" or "platform provider" should take steps to familiarise themselves with the obligations and requirements and establish the necessary procedures, provide training for human resources personnel and managers as well as review existing service agreements to ensure their compliance with the provisions of the Bill from day one.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.