Malaysia tables landmark gig workers bill to safeguard 1.2 million workers

Malaysia has taken a decisive step towards formalising protections for its rapidly growing gig economy, with the Gig Workers Bill 2025 tabled for its first reading in the Dewan Rakyat, the lower house of Malaysia’s bicameral parliament, on Monday.

The legislation, which Human Resources Minister Steven Sim hailed as a “historic milestone”, seeks to safeguard the rights and welfare of 1.2 million gig workers while providing long-awaited legal clarity for a sector that has operated in a vacuum for years.

The bill was introduced following Prime Minister Datuk Seri Anwar Ibrahim’s call during the Bumiputera Economic Congress in March 2024 for stronger protection for gig workers. Since then, the Ministry of Human Resources has worked with Universiti Malaya on a policy and legal study before forming a dedicated drafting committee involving ministry representatives and the Attorney-General’s Chambers. Between October 2024 and August this year, the ministry conducted 37 engagement sessions with more than 3,800 stakeholders, including platform operators, worker associations, unions, state governments, and employers.

Sim emphasised that the bill reflects the voices of those who will be directly impacted, noting that while it cannot meet every demand, it represents the most comprehensive framework Malaysia has ever developed for gig workers.

Key provisions of the bill include requirements for contracts between gig workers and platforms to clearly outline terms of service, obligations, and payment details, with any conditions less favourable than those enshrined in law deemed void. Workers are guaranteed timely payments, protection from discrimination and unfair termination, and access to dispute resolution through a new Gig Workers Tribunal. The tribunal’s decision will carry the weight of a Sessions Court, though appeals may be made to the High Court.

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The legislation also mandates social security coverage under the Self-Employment Social Security Scheme, with contributions to be deducted and remitted by platform providers and introduces occupational safety obligations for contracting entities.

Industry groups have broadly welcomed the bill, with Gabungan eHailing Malaysia (GEM) urging lawmakers to expedite its passage. Jose Rizal, GEM Chief Activist, said the bill represents recognition of the gig workforce as an integral part of Malaysia’s labour market, though he noted that issues such as a minimum income floor and flexible retirement savings remain unresolved. He described the bill as a “game changer” that should continue to evolve to address emerging gaps and strengthen protections over time.

Sim expressed hope for bipartisan support, underscoring the bill’s role in balancing flexibility with fairness, reported New Straits Times. If passed, it would mark the first time gig workers in Malaysia are formally acknowledged in law, setting a precedent for the region in shaping the future of work.