KUALA LUMPUR: Malaysia has become the 16th country globally to enact special legislation for the gig economy sector following the passage of the Gig Workers Bill 2025.
Human Resources Minister Steven Sim confirmed the bill’s approval by the Dewan Rakyat, positioning Malaysia at the forefront of gig worker empowerment.
“We are the 16th country in the world to have such legislation, which means we are at the forefront in empowering this sector,” he stated during a press conference at Parliament.
Sim emphasised that this legislative framework would boost foreign investor confidence by demonstrating Malaysia’s commitment to international labour standards.
The Ministry of Human Resources will conduct nationwide tours to ensure stakeholders fully understand and comply with the new legal requirements.
A Tripartite Consultative Council will address wage and payment uncertainty issues among gig economy workers through collaborative discussions.
“In the council, it is not the government that determines the rate or formula, it is not the company that determines the rate or formula like now, but the workers and employers are sitting together on platform,” Sim explained.
This approach provides gig workers with a legal channel to negotiate payment rates directly, which they previously lacked.
The legislation also protects gig workers from arbitrary termination, suspension, or deactivation by platform providers and contracting entities.
Sim clarified that gig workers maintain their freelancer status with job choice rights, distinguishing them from traditional employees under the Employment Act 1955.
Gig workers operate under a ‘contract for service’ rather than a ‘contract of service’, preserving their independent working arrangements.
The Gig Workers Bill 2025 aims to safeguard the welfare of Malaysia’s 1.2 million gig workers through four fundamental components.
These components encompass precise definitions of gig workers, established wage mechanisms, regulated payment rates, and enhanced social security provisions. – Bernama
