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Gig Workers Bill validates verbal contracts and covers entertainment industry

KUALA LUMPUR: The Gig Workers Bill 2025 extends legal protection to more than 1.2 million gig workers across Malaysia, including those within the entertainment industry.

Human Resources Minister Steven Sim Chee Keong confirmed that verbal agreements will now hold legal validity even without written contracts.

He explained that verbal arrangements are particularly common within the creative sector, where workers previously remained unprotected during disputes.

The Bill defines a service agreement as any arrangement, whether written, verbal, express or implied, addressing longstanding issues in the arts sector.

Verbal or implied contracts will now receive legal recognition during grievance proceedings, including at industrial tribunals.

The Minister made these remarks during a press conference following a special briefing at the National Film Development Corporation Malaysia.

The legislation also mandates that part-time and freelance workers must receive formal pay slips, granting them recognised employment rights.

Section 13.1 of the Bill allows gig workers to request income statements from hiring entities upon request, which must comply under Section 13.2.

Failure to provide income statements constitutes an offence under Section 13.3, punishable by up to two years imprisonment or fines reaching RM50,000.

Payment rates and minimum contract standards will be negotiated through a proposed Tripartite Consultative Council involving hiring entities and workers.

Gig worker wages will receive priority over other creditor payments in bankruptcy cases involving film producers or investors.

Minister Sim emphasised that Malaysia cannot adopt a phased implementation model like Singapore, which initially focused only on delivery and e-hailing riders.

The Bill mandates contributions to the Social Security Organisation to enhance overall worker welfare and protection.

It is scheduled for tabling in the Dewan Negara before being gazetted and enforced nationwide. – Bernama

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