Malaysia approves landmark Gig Workers Bill

Malaysia’s Parliament on August 28 approved the Gig Workers Bill 2025, a landmark law that regulates the country’s rising gig economy and provides protections to 1.2 million workers across the country.

The bill, which was filed by Malaysia’s Ministry of Human Resources earlier in August, covers gig workers earning incomes through e-hailing, p-hailing, freelancing, and digital content creation platforms and recognizes them as a distinct labour category separate from traditional service and independent contractors.

Platform providers like Grab and FoodPanda are also required to sign written service agreements with gig workers under the new law. The agreement must outline minimum standards on pay terms, working arrangements, insurance coverage, and termination procedures. It also prohibits unfair practices such as unilateral rate changes, arbitrary account suspensions, and restrictions on working across multiple platforms.

A Gig Workers Tribunal will also be established to resolve disputes, with powers to order reinstatement, compensation, or recovery of unpaid wages. Gig workers will have the right to be heard before suspension and compensated with 50% of their average daily pay if found not at fault.

Other stipulations in the new bill include the creation of a registry under the Human Resources Ministry, coverage under the Self-Employment Social Security Act, and the right for gig workers to form associations to represent them in dispute resolution and collective negotiations.

Human Resources Minister Sim Chee Keong described the bill as a ‘historic milestone’ that was long overdue in addressing the gaps in labour protection for gig workers.

“For too long, 1.2 million Malaysians in the gig sector have worked daily without proper labour protection, as if their contributions to the economy did not deserve recognition. This bill ends that injustice,” Sim said in a speech to Parliament. 

“This law ensures that Malaysia’s digital economy remains competitive, while upholding justice for workers who have too long been left without protection.”

Sim added that the ministry is also considering an Employees Provident Fund program for gig workers, but emphasised that it will be done at a later phase as the current bill prioritises social security protections.

The law received support from industry bodies, including the Malaysian Trades Union Congress, the Film Workers’ Association of Malaysia, and the Malaysian Sign Language Interpreters and Translators National Organisation.