Over 1.2 million Malaysians currently earn a living through gig work, with e-hailing being the most prominent sector. Unlike traditional employees, gig workers are not afforded statutory protections under employment legislation such as the Employment Act 1955, Industrial Relations Act 1967 etc. As a result, they are exposed to risk of income instability, lack of social security and vulnerability to exploitation.
In a landmark move to address these issues, the Gig Workers Bill 2025 (“Bill”) was tabled for the first reading at Dewan Rakyat today (25.8.2025). The Bill broadly aims to: (a) protect the rights of gig workers; (b) regulate service agreements and impose obligations on contracting entities; (c) establish mechanisms for dispute resolution, including the Gig Workers Tribunal; and (d) establish the Consultation Council which will advise the Government on key policy areas involving gig workers.
The key provisions of the Bill are summarised below:
| Area | Summary | Reference in Bill | ||||||||||||||||||
| Definition of Gig Worker | (a) Gig Worker means among others any individual who:
(i) Has entered into a service agreement with an entity to perform services either:
(1) for a platform provider, or (2) listed in the Schedule which is not for a platform provider; and
(ii) Earns an income from providing those services.
(b) The services listed in the Schedule include the following:
|
Clause 2 | ||||||||||||||||||
| Definition of Platform Provider | A Platform Provider is any digital intermediary system that connects Gig Workers’ services to end-users. This includes businesses such as e-hailing and food delivery platforms.
|
Clause 2 | ||||||||||||||||||
| Requirement for Service Agreements | Every service agreement between a contracting entity and a Gig Worker must expressly state:
(a) the parties involved;
(b) duration of the agreement;
(c) services to be provided;
(d) obligations of both parties;
(e) payment rates and income details;
(f) payment method; and
(g) any benefits, tips, or rewards.
|
Clause 3 | ||||||||||||||||||
| Rights of Gig Workers | (a) The Bill captures the main rights of a Gig Worker. In short, they must:
(i) be informed of all agreed terms, services to be provided, income details, payment methods, benefits, tips, or rewards.
(ii) receive payment for services within the agreed timeframe.
(iii) be consulted and informed about any changes to their service agreements.
(iv) not have their engagement terminated without just cause or excuse.
(v) provided with access to dispute resolution mechanisms.
(vi) not be restricted from entering into service agreements with other parties.
(vii) not be subjected to discrimination in their work conditions, service assignments or payments.
(b) For Gig Workers specifically engaged by Platform Provider, they must be:
(i) informed about: (1) any automated monitoring and decision-making systems used by the platform provider to supervise and monitor their performance, including the consequences arising from such monitoring; (2) automated systems used by the platform to make decisions affecting their assignments, work conditions, or job allocation.
(ii) provided with a manual review mechanism for any decisions or assessments by these automated systems.
|
Clauses 8 – 9 | ||||||||||||||||||
| Payment terms | If a service agreement does not specify payment terms, the contracting entity must pay the Gig Worker within 7 days upon completion of the service.
|
Clause 11 | ||||||||||||||||||
| Limitations on deductions | Entities are not allowed to make deductions from a Gig worker’s income, tips, or rewards, except: (a) to correct for overpayments made within the last three months; (b) when it is allowed under the law; and (c) If authorised by the Director-General.
|
Clause 12 | ||||||||||||||||||
| Mechanism for platform providers to restrict or suspend access of Gig Worker
|
The Bill sets out a formal procedure for a Platform Provider to deactivate a Gig Worker’s access to their digital system if: (a) done in accordance with the service agreement; or (b) the Gig Worker commits misconduct while performing their services.
|
Clause 14 | ||||||||||||||||||
| Priority to Gig Workers’ income | Under the Bill, earnings of Gig Workers are given priority over other claims. For example, if a court order freezes or garnishes funds owed by the contracting entity which engages the Gig Worker, any proceeds from the sale, withholding, or garnishment must first be used to pay the Gig Worker’s outstanding income. This priority applies up to a maximum of four months’ earnings for any consecutive period of service.
|
Clause 15 | ||||||||||||||||||
| Introduction of a dispute resolution mechanism | (a) The Bill introduces a dispute resolution mechanism to resolve complaints by Gig Workers.
(b) Gig Workers can submit a written complaint to a contracting entity. Upon receiving the complaint, the contracting entity must initiate and resolve the dispute through its internal grievance mechanism in accordance with the service agreement, within 30 days of the complaint.
(c) Gig Workers can then escalate a dispute to a mediator relating to:
(i) issues with individuals or sole proprietors who engage them;
(ii) decisions taken by a Platform Provider towards the Gig Worker following the deactivation of their access or act of misconduct committed by them;
(iii) lack of an internal grievance mechanism by the contracting entity;
(iv) their dissatisfaction with the outcome of the internal grievance mechanism by the contracting entity as seen in (b) above; and
(v) the failure to resolve the Gig Worker’s complaint after 30 days upon receipt of the same as seen in (b) above.
(d) If the dispute is resolved, the mediator will record the terms of the settlement.
(e) If the mediator is satisfied that the dispute cannot be resolved, it will refer the same to the Gig Worker Tribunal.
|
Clauses 17 – 19 | ||||||||||||||||||
| Establishment of Gig Worker Tribunal
|
The Bill establishes a Gig Worker Tribunal with the power to hear and decide disputes or matters referred to it.
|
Clauses 21 – 45 | ||||||||||||||||||
| Social security rights and obligations | (a) Under the Bill, Gig Workers have the right to have social security contributions deducted from their income by the contracting entity and to access information concerning these contributions through the digital systems of Platform Providers.
(b) Platform Providers are required to register all Gig Workers under the Self-Employment Social Security Scheme, remit contributions on their behalf, implement mandatory deductions, and provide mechanisms for Gig Workers to adjust or top-up contributions if necessary.
|
Clauses 82 – 83 | ||||||||||||||||||
| Occupational Safety and Health Obligations | Under the Bill, contracting entities have a duty to ensure the safety and health of Gig Workers while performing their services. This includes:
(a) Conducting risk assessments to identify workplace hazards and implementing appropriate risk control measures.
(b) Ensuring adequate safety and health measures for any equipment or facilities provided to gig workers.
(c) Minimising risks arising from systems, processes, or calculations used by the contracting entity during the provision of services.
(d) Providing sufficient information, instructions, training, and supervision based on the risk assessment for the safe performance of services.
(e) Developing and implementing emergency procedures to address potential incidents while services are being performed.
(f) Reporting any work-related accidents or occupational illnesses to the Director-General.
|
Clause 103 |
A link to the Bill is seen here: Gig Workers Bill 2025
If you have any queries, please contact Partner Amardeep Singh Toor (ast@lh-ag.com) or Associate Wong Lien Taa (wlt@lh-ag.com)
Learn more about our partners who specialize in this area
