On 28.8.2025, the Dewan Rakyat passed the Gig Workers Bill (“Bill“), which was subsequently approved by the Dewan Negara on 10.9.2025.
Once it receives the Royal Assent, the Bill will become law, finally addressing the gap in protection for gig workers in Malaysia.
The Bill gives legal recognition and sets out the rights and protections for gig workers while also regulating how entities and platforms that engage them must operate.
In this article, we break down the key points that you need to know about this Bill.
Who is a Gig Worker?
A gig worker is defined as a person who provides services under a service agreement and receives earning, either:
a) through a platform provider (such as Grab, Foodpanda and other digital platforms); or
b) to a contracting entity who is not a platform provider, but only in certain specified industries.
For non-platform work, the Bill currently covers roles such as:
a. Actors
b. Film Production Crew
c. Singers, musicians, composer, lyricists
d. Make-up artist, hairdresser and stylist
e. Sign language interpreter, interpreters, translators or stenographers
f. Journalist and freelance reporters
g. Carers providing maternity, palliative, elderly or rehabilitation care.
h. Photographers and videographers
What is a service provider and contracting entity?
- Contracting entity: An individual, a company or a platform provider who engages and enters into a service agreement with a gig worker
- Platform provider: A system provider who connects gig worker to customers through an application or digital platform.
What is a Service Agreement and what must it contain?
A service agreement (“Agreement“) is the contract between a gig worker and a contracting entity. It may be written or oral, but the Bill sets out minimum terms that must be included such as:
a) Name of the parties
b) Duration of the agreement
c) Services to be provided
d) Obligations of each parties
e) Rate and details of earnings
f) Method of payment
g) Any benefits or tips and gratuities
Any term in the Agreement that is less favourable than the Bill shall be void and replaced with the protections under the Bill.
Parties are free to agree on terms that are more favourable to the gig worker.
Service agreements that has been entered before the coming into force of this Bill will remain valid, but they are subject to the protections under the Bill.
Rights of a Gig Worker
The Bill gives Gig Workers the following rights:
a) To be informed of the terms of the Agreement
b) To be informed of the agreed service to be performed
c) To be informed of the rate and details of earnings before performing the service
d) To be informed of the payment methods for earnings, tips and other benefits
e) To receive their earnings within the agreed period
f) To be consulted and informed of any changes to the terms of the Agreement
g) Not to be terminated of their service without just cause and excuse
h) To have access to dispute resolution mechanism
Additional Protections
The Bill also provides the following protections to gig workers:
a) Contracting entity cannot stop gig workers from working with other parties
b) No discrimination in conditions of work, assignment of service or payment
c) Gig-worker cannot be restricted from joining or participating in associations
d) If no payment date agreed, gig workers shall be paid within 7 days from completing their service.
e) No deductions from gig workers earnings unless:
– For overpayment of earnings (for preceding 3 months from deduction);
– Authorised by law; or
– Permitted by the Director General.
f) Gig workers earnings take priority over debts of the contracting entity.
g) Gig workers engaged by platform provider are entitled to social security contributions, which is deducted from the earnings.
h) Contracting entities ensure the health and safety of every gig worker.
Dispute Resolution
The Bill introduces a framework in resolving disputes between a gig worker and the contracting entity.
Internal Grievance
If the contracting entity is not an individual or a sole proprietor, disputes must be resolved first through an internal grievance mechanism provided under the service agreement.
The dispute must be resolved within 30 days from the date complaint is lodged.
Conciliation
If the matter is not resolved internally or where a dispute is against an individual or sole proprietor contracting party, a gig worker may file a complain for conciliation.
The conciliation is conducted by a Conciliator who will attempt to reach a settlement between parties. If settlement is reached, the terms will be recorded.
If the matter is not settled, it will be referred to the Gig Workers Tribunal.
Gig Workers Tribunal (“Tribunal”)
The Tribunal is able to hear and determine any disputes referred by the Conciliator.
Key points about the Tribunal:
a) Hearing date, time and place if fixed by the Registrar who will notify all parties.
b) Parties are entitled to appear and be heard. However, legal representation is not allowed, but parties can only be represented by the following person:
– Contracting Entity – a duly authorised employee; or
– Gig Worker – official or authorised member of the gig workers’ association or a family members.
c) The Tribunal must deliver its decision within 30 days from the last hearing date.
d) The decision is binding and reasons will for the decision will be provided in writing.
e) An aggrieved party may appeal the Tribunal’s decision to the High Court.
f) Any non-compliance with the Tribunal’s award can result in fines or imprisonment.
Moving Forward
It is only a matter of time before the Bill receives Royal Assent and becomes law.
In preparation:
1. Gig Workers should familiarise themselves with their rights and consider preparing standard service agreement for use with contracting entities
2. Contracting entities and platform providers should review any existing service agreements and internal policies to ensure compliance with the Bill.
The Gig Workers Bill marks a significant step towards providing fairer working conditions and legal certainty for this growing economy.
If you have any questions on this Bill, feel free to comment below or contact the law firm at legal@tnl.com.my
DISCLAIMER
This article is for informational and educational purposes only and should not be considered legal advice. For personalized guidance and advice, please consult a qualified lawyer.
Tristan & Partners 