If you are a gig worker, you need to know these things from the Gig Worker Bill that Parliament passed in August 2025.

Good news! The Malaysian government has recently passed the Gig Worker Bill after working on it for a long time. Many gig workers were previously in a grey area, because they worked but were not considered employees under Malaysian law. Hence, they lacked protection and rights.

With the passing of the new Gig Worker Bill, that status has now changed. Here are 7 must-know things you should know from the Gig Worker Bill.

#1: Gig Workers Formally Defined by the Government

This is perhaps the most important thing that came out of the bill. Before this, there was no consensus or agreement on what a gig worker is. And that’s one of the main reasons why they lack the protection and rights of a regular employee.

According to the bill, a gig worker is now defined as someone who:

  1. Is a citizen or permanent resident of Malaysia
  2. Has a service agreement with a platform provider (like ride-hailing, food delivery, etc) or non-platform provider (regular employer) defined under Section 2
  3. Receives money for his or her services rendered

If you work for any online or application platforms in Malaysia, you are a gig worker. For now, the Malaysian government defines you as a gig worker if you work for the following industry and job scopes:

  • Acting: Actor
  • Film: Film production crew
  • Music: Singer, musician, composer, lyricist
  • Aesthetic: Make-up artist, hair stylist, stylist
  • Translation: Sign interpreter, interpreter or translator, transcriber
  • Journalism: Journalist, stringer
  • Prenatal and postnatal care: Caregiver
  • Palliative, elderly and rehabilitation care: Caregiver
  • Photography and videography: Photographer, videographer

That said, there are still gaps and uncertainties. For example, if you work for UpWork or other overseas platforms, it is unsure whether you will be classified as a gig worker in Malaysia. Being a freelance writer/content creator could technically qualify you as a journalist but it could be argued that that is not the case. Freelance tuition teachers are probably not considered as gig workers in this context too.

However, the bill does allow the authorities to change and further define gig workers in the future.

#2: Some Basic Protection for Contracts

There is an important provision in the bill that could protect gig workers. If the contract that you sign with a platform or someone is worse than the basic rights and protections stated in the bill, then the contract will not be applicable.

This applies for BEFORE and AFTER the bill is introduced.

For example, if you signed a contract in the past and it doesn’t have the basic rights and protections, you can null it and get the agreement stated under the bill. We will get to what are the basic rights and protections later on.

This essentially provides a minimum standard for gig worker agreements and contracts that is provided by the government – a must-have for many current and future gig workers out there.

#3: Social Security Contributions for Gig Workers

Finally, some form of Social Security Organisation (SOCSO/PERKESO) protection. This applies to platform providers in Malaysia and a gig worker can now contribute to SOCSO/PERKESO through the provider’s systems.

The provider is obligated to ensure that the gig worker is

  1. Registered under the Self-Employment Social Security Scheme
  2. Given the ability to make deductions from his or her earnings to SOCSO/PERKESO

Before this, a gig worker would have to do all this by themselves. It was a pain point for many of them who struggle to make a living. Now, platform providers will assume that responsibility like a regular employer to help them contribute to SOCSO/PERKESO.

#4: No More Non-Compete Restrictions

It is an open secret in the gig industry that many platforms impose non-compete conditions. This effectively prevents them from working for other competitors, and has been a main source of stress for them to make ends meet.

Good news! The bill effectively says that a platform provider cannot impose non-compete conditions that restrains a gig worker’s rights to work for other companies/competitors.

If you find this condition or restriction in your contract, you can bring this up to the authorities.

#5: Gig Workers Can Unionize

Unions is a tricky subject in Malaysia. Unions in Malaysia are declining and the issue of course, is complicated. However, the bill does provide rights to gig workers to organise, form, and join unions.

If a contract with a platform provider contains terms and conditions that restricts the rights of the gig worker to join a union or their activities, it will be void.

For gig workers, this is especially important as they currently lack the rights and protection for a regular employer. So, the need to form a united union and front is more important than ever.

#6: Access to Legal and Mediation Services in Tribunal

The bill will establish a dedicated tribunal for gig workers called the Gig Workers Tribunal. It functions like a court for gig workers and employers to resolve their disputes.

Most importantly, a gig worker can now bring their grievances to a ‘conciliator’ where he or she will try to mediate the dispute. If that doesn’t work out, the conciliator will bring the matter to the tribunal.

The tribunal is probably a cost-effective alternative for gig workers if it functions like the Consumer Claims Tribunal where

  1. The filing fee is only RM5.00
  2. A consumer can represent himself or herself without any lawyer

If the tribunal is unable to resolve the dispute, a gig worker can bring the matter to the Malaysian high courts.

#7: A Council to Study, Propose, and Make Changes to the Bill

One of the stickiest points about the gig industry is that there are no established standards or requirements when it comes to minimum earnings rate. Think of this as having no minimum wage level for a regular employee.

The issue is of course, complicated as it involves many sectors and industries. That’s why the bill is proposing to have a ‘Council’ to study, propose and make recommendations to the government regarding the minimum earnings rate.

To make things clear, there are currently no minimum earnings rate yet. However, the council could suggest one in the future, and propose revising it every few years like what the National Wages Consultative Council does for minimum wages for Malaysian workers.

Conclusion

Things are looking up for gig workers with the passing for the Gig Workers Bill. If you are a gig worker, make sure you are well-acquainted with what the bill provides for you.

And if you are unhappy with it, make sure the ‘Council’ knows about it.

 

Let us know in the comments below what you think about the bill!

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