The gig economy has become a defining force in today’s labour market. Built on digital platforms, flexible hours, and short-term engagements, it has opened doors to income opportunities for many. But behind that flexibility lies a harsh reality income instability, unclear employment status, and growing risks shifted onto workers, particularly young and economically vulnerable individuals.
Malaysia’s Gig Workers Bill 2025 signals a historic turning point. Once fully legislated, it will formally recognise gig workers as a protected third category of labour, bridging long-standing legal gaps and bringing dignity, structure, and safeguards to platform-based work.
This move reflects Malaysia’s broader commitment to international standards, including the United Nations Guiding Principles on Business and Human Rights (UNGPs), Responsible Business Conduct (RBC), the Sustainable Development Goals, and Malaysia’s National Action Plan on Business and Human Rights. RBC pushes businesses to go beyond minimum legal compliance and take responsibility for how their operations affect people. The Gig Workers Bill translates these global principles into practical, enforceable protections.
The Bill can be understood through four key RBC pillars that reshape how gig work is regulated in Malaysia.
Pillar 1: Clear and Fair Contracts
Gig workers often operate under vague or one-sided terms, leaving them exposed to hidden risks. The Bill addresses this by legally defining both “gig worker” and “contracting entity.” It recognises service agreements in any form written, oral, express, or implied ensuring that platforms cannot escape responsibility through technicalities.
Most importantly, it requires minimum contractual terms, including clear and transparent payment details. This reduces information gaps and helps balance the unequal power relationship between platforms and workers.
Pillar 2: Income Protection and Fair Treatment
Unpredictable income is one of the biggest challenges in gig work. The Bill strengthens economic security by requiring contracting entities to disclose payment rates upfront and provide earnings statements upon request, allowing workers to verify their pay and plan their finances.
If a contract fails to specify payment terms, the law introduces a default rule: workers must be paid within seven days of completing their service. The Bill also protects workers from unfair treatment by prohibiting termination or platform deactivation without “just cause or excuse.”
Pillar 3: Social Protection and Occupational Safety
Flexibility should not come at the cost of safety or social security. The Bill makes registration under the Self-Employment Social Security Scheme (PERKESO SPS-Gig) mandatory. Platforms must integrate with PERKESO systems to automatically collect contributions at 1.25% of earnings, ensuring workers are covered in case of injury or accidents.
Beyond financial protection, the Bill imposes occupational safety and health (OSH) responsibilities on contracting entities. These include conducting risk assessments, providing training, ensuring proper equipment, setting emergency procedures, and reporting workplace accidents. Regulators are also given enforcement powers to ensure compliance.
Pillar 4: Access to Remedies and Stronger Governance
A key feature of responsible business conduct is giving workers real avenues to seek justice. The Bill requires platforms to establish internal grievance mechanisms and resolve written complaints within 30 days.
If disputes remain unresolved, cases can move to conciliation under the Director General of Industrial Relations, and ultimately to the newly established Gig Workers Tribunal. This specialist body can issue binding decisions, with criminal penalties for non-compliance.
The Bill also creates a Tripartite Consultative Council, bringing together workers, industry players, and government to shape sector standards and ensure ongoing dialogue.
A New Chapter for Fair Work in Malaysia
The Gig Workers Bill 2025 marks a shift from reactive, piecemeal regulation to a forward looking governance model grounded in responsible business principles. It preserves the flexibility that defines gig work while embedding essential protections for those who power the platforms.
By turning global human rights principles into enforceable legal duties, Malaysia is positioning itself as a regional leader in fair gig economy regulation. The real test, however, will lie in effective enforcement, institutional capacity, and shared commitment from businesses, government, and society.
If implemented well, this law will not just regulate platforms it will restore balance, dignity, and security to the future of work.
