PETALING JAYA: Malaysia’s first-ever Gig Workers Bill, to be tabled in Parliament today, is seen as a landmark move to regulate the sector – but experts warn that without clear definitions and phased implementation, the law could end up hurting both workers and businesses.
Universiti Malaysia Kelantan human resource and industrial relations expert Prof Dr Balakrishnan Parasuraman said the first priority is to establish a legal definition of gig workers.
“The definition must be very clear. If gig workers are excluded from the contract of employment, they risk being denied recognition as employees.”
“Once they are considered employees, they fall under the Employment Act 1955, which was fully amended in the last two years. That would entitle them to protections, including the minimum wage order and other rights under labour law,” he told theSun yesterday.
Balakrishnan said legal clarity was essential to prevent discrimination.
“Without recognition, gig workers could face inequality in salary, job security and career development.
“Delivery platforms are the major players and internationally, countries and the International Labour Organisation are working to ensure gig workers are not left out of employment protections. If they are recognised as employees, they will at least receive basic safeguards such as minimum wage.”
He also called for a comprehensive framework covering working hours, flexible schedules, performance appraisal, overtime and statutory contributions.
“EPF and Socso are critical. If workers are classified as contractors, they will have to contribute on their own. But if they fall under the Employment Act, both employers and employees share the obligation. Short-term higher earnings should not compromise long-term protection such as retirement savings.”
From an economic standpoint, Universiti Teknologi Mara senior lecturer in economics Dr Mohamad Idham Md Razak said the Bill could impose significant costs on platforms.
“They would have to contribute to EPF, Socso and the Employment Insurance System, which are fixed expenses similar to salaries. This will raise costs for businesses, drive up prices for consumers and may limit competition.”
He warned that smaller or newer operators could be squeezed out, leaving the industry dominated by a few large players.
“This would create an oligopoly market, reducing consumer choice and stifling innovation.”
Idham also highlighted the complexity of handling workers engaged with multiple platforms.
“A centralised system could help pool contributions, with rates pegged to income and fairly split across platforms.”
He cautioned against pushing the Bill through before the proposed Malaysia Gig Economy Commission is established.
“Without a designated institution to provide guidance and interpretations, businesses will face uncertainty. Even if the law includes an annual review, sudden changes could result in cost overruns and business disruptions.”
Idham recommended phasing in the Bill to give platforms and workers time to adapt.
“Instead of hourly wages, a minimum earning per task could be considered. Most importantly, the Gig Economy Commission should be legally established with proper funding to support implementation.”
As the Bill moves forward, both experts agree that its success will depend on clarity of definitions, fair contribution mechanisms and gradual enforcement.
Without these, they warn Malaysia risks undermining the very workers it is seeking to protect while constraining the industry’s growth.
