Malaysia moots Bill that could make gig workers formal employees

In a first of its kind, the federal government will debate on an amendment Bill that could redefine the relationship of gig workers and tech companies.
By: | March 3, 2022

The landmark Bill could potentially lead to tech companies which employ gig workers to accord the latter with rights and privileges enjoyed by formal staff.

The amendment Bill proposes six criteria that would help define an employee and his or her relation to the employer under the Employment Act 1955, a key provision that may force many internet-based companies to compensate gig workers with benefits that come with formal employment, like health insurance and pension contributions.

Under Section 101C, the Bill proposes that a worker will be considered an “employee” if the manner and the hours of work are subject to the control or direction of another person.

Any worker will also be deemed to be an employee if he or she is provided with tools, materials or equipment by another person to execute work, where the work constitutes an integral part of another person’s business, and if the work is performed solely for the benefit of another person.

Under the last subsection of the proposed Section 101C(1), any payment received for a gig work and constitutes the majority of the worker’s income, would automatically make the person an employee.

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The amendment Bill will also expand the definition as to who constitutes an employer using the same set of criteria that define an employee. This means, among other things, anyone who controls or directs the manner of work of another person, or controls or directs the hours of work of another person, is considered an employer, according to Malay Mail.