From wage regulation to dispute resolution: How the Gig Workers Bill offers safeguards for 1.2 million Malaysians

KUALA LUMPUR, Sept 2 — The Ministry of Human Resources (Kesuma) on August 25 tabled the Gig Workers Bill 2025, which it described as a major milestone in the bid to regulate gig work and protect millions of workers.

The Bill, which was passed on August 28, came after years of protests over what workers alleged to be exploitative practices by internet-based companies, fuelling demand for safeguards in a multi-billion-ringgit industry that largely operates outside laws governing formal employment.

About 1.2 million Malaysians currently earn through gig work, with e-hailing emerging as the most prominent sector, according to Kesuma data.

What is the Gig Workers Bill 2025?

The ministry said the Gig Workers Bill 2025 provides a clear legal framework to protect the rights and welfare of gig economy workers, starting with a clearer and broader definition of what constitutes gig work and which types of workers are protected under this law.

Who qualifies as a gig worker under the new law?

Any individual who:

1. Has entered into a service agreement with an entity or platform provider

2. Performs services for a platform provider or earns income through the following activities:

  • Acting or singing
  • Film production crew work
  • Lyric writing or music composition
  • Make-up artistry
  • Hairdressing or styling
  • Freelance journalism
  • Care services
  • Videography
  • Photography

Why is the Bill important?

This Bill is considered a significant step because it seeks to address several key issues faced by gig workers.

This includes the lack of legal recognition — gig workers do not have a clear legal definition, making it difficult to seek legal recourse in disputes — as well as the absence of social protection.

The new law makes social security contributions — such as those to Perkeso and EPF — mandatory for service providers, giving gig workers a safety net they previously lacked.

The law also establishes a formal dispute resolution mechanism, including a Gig Workers Tribunal, to handle complaints in a structured and transparent way.

When can gig workers escalate complaints for mediation?

Under the Bill, gig workers may seek mediation in cases involving:

1. Issues with individuals or sole proprietors who engage them

  • Decisions by a platform provider that affect them, such as:
  • Deactivation of their access

2. Alleged misconduct

3. Absence of an internal grievance mechanism by the contracting entity

4. Dissatisfaction with the outcome of an internal grievance process, if one exists

The Bill also addresses income protection by seeking to regulate payment terms that would require companies to clearly define how they will remunerate those they hire. 

The Bill would also prohibit arbitrary deductions.

What are the weaknesses of the Bill?

The Human Rights Commission of Malaysia (Suhakam), for one, said the Bill is still missing provisions for wage guarantees, timelines for payment and transparency in deductions. 

The law prohibits arbitrary deductions, but allows exceptions for overpayments and other legally authorised cases — a provision critics say lacks clarity and may be open to misuse.

Suhakam had also raised concerns about privacy and data protection — the Bill does not explicitly protect a gig worker’s right to privacy and does not prevent the misuse of personal data in rating or scoring systems by platform providers.

It also argued that legal aid and collective bargaining rights are indispensable for ensuring fairness in the gig economy.

Various groups, including e-hailing and p-hailing workers, have called for the Bill to be reviewed by a Parliamentary Select Committee and not rushed through Parliament.

Zahiid, S. J. (2025, September 2). From wage regulation to dispute resolution: How the Gig Workers Bill offers safeguards for 1.2 million Malaysians. Malay Mail. https://www.malaymail.com/news/malaysia/2025/09/02/from-wage-regulation-to-dispute-resolution-how-the-gig-workers-bill-offers-safeguards-for-12-million-malaysians/189234

  • THE HEART WORK REVOLUTION
    TEN years after its inception, the Life at Work Awards (LAWA) 2025 marked not just a milestone but a movement that celebrates how Malaysia’s workplaces are evolving with compassion, flexibility and purpose. Hosted by Talent Corporation Malaysia Bhd (TalentCorp), the gala night honoured organisations leading the way in shaping a fairer, more progressive, human-centred world […]
  • Group wants clear framework, pilot projects before expanding EIS to gig workers
    PETALING JAYA: The Malaysian Industrial, Commercial and Service Employers Association (Micsea) has called on the government to set a clear policy framework and run pilot projects before expanding the Employment Insurance System (EIS) to gig and platform-based workers. The association said the plan, announced by human resources minister Steven Sim in the Dewan Rakyat on […]
  • Employer group seeks clarity on foreign worker pay rules after court ruling
    KUALA LUMPUR (Nov 3): The Malaysian Industrial Commercial & Service Employers Association (MICSEA) is calling on the Ministry of Human Resources (MOHR) to issue clear and structured guidelines on wage payment timelines for foreign workers, following a recent court ruling that employers must pay wages from the moment these workers arrive in Malaysia. The call […]
  • HR minister: Court backpay ruling a warning for employers over unpaid migrant wages
    PUTRAJAYA: Human Resources Minister Steven Sim said the Shah Alam High Court’s ruling on unpaid wages to foreign workers should serve as a clear warning to employers, as withholding salaries is a serious breach of Malaysia’s labour laws. Referring to the ruling delivered on Friday, he said the Human Resources Ministry would not compromise with […]
  • Malaysia steps up efforts to ensure fair, dignified worker housing, says HR minister
    GEORGE TOWN, Oct 28 — Malaysia is committed to ensuring that accommodation provided to workers meets international standards. Human Resources Minister Steven Sim Chee Keong said the government is taking a firm stand to regulate and enforce the Workers’ Minimum Standards of Housing, Accommodations and Amenities Act 1990. He said compliance with ESG requirements is […]
  • Gig workers can be represented by family members, associations in disputes, says HR Minister
    KUALA LUMPUR: Gig workers who are unable to represent themselves during dispute mediations in the Tripartite Council can be represented by family members or a body such as an association of gig workers, says Steven Sim. The Human Resources Minister also stated that unions can represent gig workers in the Tripartite Council only if they […]
  • Malaysia reaffirms commitment to workers’ welfare, regional solidarity at 14th Asean Labour Conference
    GEORGE TOWN: Malaysia has underscored its firm commitment to upholding workers’ welfare, human dignity and regional cooperation during the 14th Asean Labour Inspection Conference. Human Resources Minister Steven Sim said Malaysia is committed to ensuring that the accommodation provided to workers is in line with international standards. He said the firm stand of the government […]
  • ILO chief begins inaugural official visit to Malaysia on Oct 20
    PUTRAJAYA: International Labour Organisation (ILO) director-general Gilbert F. Houngbo will undertake a two-day working visit to Malaysia from Monday (Oct 20). The Human Resource Ministry said this marks the first official visit by an ILO director-general since Malaysia joined the organisation in 1957. “This visit signifies recognition of Malaysia’s active role and continued commitment to […]
  • Govt allows case-by-case foreign worker approvals until year-end, says Home Minsitry
    PUTRAJAYA, Oct 14 — The government has agreed to grant facilitation for foreign worker quota applications on a case-by-case basis to three sectors, namely plantation, agriculture, and mining and quarrying, as well as ten subsectors, until December 31 this year, the Home Ministry announced. The subsectors are security services, metal and scrap materials, cleaning and […]
  • Malaysia to join Global Coalition for Social Justice next year
    KUALA LUMPUR: Malaysia intends to join the Global Coalition for Social Justice at the 114th International Labour Conference (ILC) next year. The Human Resources Ministry in a statement on Tuesday (Oct 21) said the matter was revealed by its minister, Steven Sim Chee Keong, during a casual meeting with the Director-General of the International Labour […]