Malaysia Oversight

New law set to safeguard gig workers

By NST in August 24, 2025 – Reading time 3 minute
New law set to safeguard gig workers


HAKIM MAHARI

KUALA LUMPUR: After more than a year of memorandums, consultations and heated debate, the long-awaited Gig Workers Bill is set to be tabled in Parliament by Human Resources Minister Steven Sim.

The bill, crafted after 37 engagement sessions with more than 3,800 stakeholders across government agencies, state authorities, platform operators, employers, unions and gig worker associations, aims to bring clarity to a sector that has for years existed in a legal vacuum.

One of the key elements of the bill, according to a Human Resources Ministry document, is the definition of gig workers, with contracts required to clearly state terms of service, obligations and payments.

Workers must be informed about the nature of their work, the income they are entitled to and how it will be paid.

The law also seeks to shield them from unfair practices, ensuring that they are not dismissed without reason or discriminated against in assignments or pay.

Any proposed changes to a contract must first be discussed with workers, ensuring that their consent and views are taken into account.

Platform-based workers will also be entitled to greater transparency in how technology governs their work.

They must be informed about how automated systems monitor, assign and evaluate their performance, and they will have the right to request a human review of any decision made by such systems.

The bill further affirms gig workers’ right to join or form associations, strengthening their ability to organise collectively.

They will also be entitled to request income slips for transparency in payments, a measure long demanded by workers seeking greater accountability from platforms.

SAFEGUARDS AGAINST EXPLOITATION

The issue of arbitrary deactivation, a long-standing complaint among platform workers, will also be addressed.

Under the proposed law, platforms must give written notice before suspending a worker, limit deactivation periods to 14 days and compensate them with half of their expected earnings if no wrongdoing is proven.

This provision is expected to bring a measure of security to thousands of riders and drivers who have long complained of sudden, unexplained account terminations.

SOCIAL PROTECTION AND SAFETY NETS

Beyond contractual protections, the bill extends social security coverage to gig workers through the Social Security Organisation (Perkeso).

Platform providers will be required to make deductions from payments and remit them, while workers will be obliged to select contribution plans.

This aims to ensure coverage for injury, illness and other risks long borne by workers alone.

The law also obliges contracting entities to safeguard health and safety, requiring them to conduct risk assessments, provide proper equipment and put in place emergency procedures.

Workers will be expected to comply with safety rules, but companies that fail to protect them could face hefty fines or even imprisonment.

Non-compliance could result in fines of up to RM50,000 or imprisonment.

MECHANISMS FOR JUSTICE

Dispute resolution, often an expensive and time-consuming process for gig workers, is another central feature of the bill.

A new three-stage system will be introduced, starting with internal grievance channels, followed by mediation through the Industrial Relations Department and ultimately the establishment of a Gig Workers Tribunal.

This tribunal is designed to offer workers a quicker, cheaper alternative to civil courts, with its awards binding on both parties.

Awards made by the tribunal will be binding, with penalties for non-compliance reaching RM50,000 or two years’ imprisonment.

© New Straits Times Press (M) Bhd



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