Key information that employers need to know on the Gig Workers Bill 2025.

No. A gig worker is defined as a Malaysian citizen or permanent resident who enters into a service agreement with a contracting entity and earns income from providing services. They are a distinct category of workers that is separate from employees and independent contractors. They do not fall under the purview of the Employment Act or Labour Ordinances.

Some examples of gig workers are e-hailing drivers and freelancers in various industries. They may work with platform providers (e.g., Grab, Foodpanda) or non-platform providers (e.g., freelance photography, translation, journalism, music, care services, beauty, and media). 

A contracting entity refers to any company, organisation, or individual that engages a gig worker to perform services. A platform provider, on the other hand, is a digital intermediary system that connects gig workers with customers.

A contract for service is a contractual arrangement between a principal and an independent contractor, where the contractor undertakes to carry out the whole or part of the work related to the principal’s trade or business. This relationship is typically direct between the company and the contractor, and the contractor retains control over how the work is performed, subject only to the agreed deliverables.

Gig workers, on the other hand, are individuals who earn income by performing short-term, on-demand tasks or services, usually facilitated through digital or platform providers. The engagement is often task-based and flexible, with workers deciding when and how often they provide services, while the platform mediates the transaction between the customer and the worker.

Yes. Written service agreements are mandatory. Each agreement must clearly state:

• Parties involved

• Duration of engagement

• Services to be provided

• Obligations of both parties

• Payment terms and method

• Benefits, tips, or rewards

The Bill does not impose a statutory minimum wage. Instead, it establishes a Tripartite Consultative Council comprising representatives from the government, gig workers, and contracting entities. This council will be responsible for negotiating pay structures, commission rates, and addressing algorithm-related concerns within the industry. Gig workers are provided with a formal platform to negotiate rates on an equal footing with companies.

Gig workers are now covered under the Self-Employment Social Security Act 2017 (Act 789). Under the Bill, gig workers have the right to social security contributions deducted by the contracting entity and access to their contribution records through platform providers’ digital systems. Platform providers must register gig workers under the scheme, make contributions on their behalf, ensure mandatory deductions, and provide options for workers to adjust or top up their contributions if needed.

A gig worker must first raise any grievance internally with the platform provider to allow the matter to be resolved directly. If the grievance remains unresolved, the next step is mediation between the gig worker and the platform provider (or contracting entity), conducted by the Director General of Industrial Relations or an appointed officer. Should the mediation fail, the grievance may then be escalated to the Gig Workers Tribunal, established under the Bill, which has the authority to hear complaints, order compensation or reinstatement, and enforce the payment of any outstanding earnings.

In contrast, the Labour Department’s scope is limited to hearing complaints from employees or monetary claims arising from an employment contract, while the Industrial Relations Department deals with cases of unfair dismissal within an employment relationship. Although the Industrial Relations Department will play a role in facilitating mediation for gig workers, the final authority to adjudicate grievances rests with the Gig Workers Tribunal.

Yes. Under the Gig Workers Bill 2025, any person who contravenes any provision of the Bill, or any summons, order or direction issued under it, where no specific penalty is expressly provided, commits an offence and shall be liable on conviction to imprisonment for a term not exceeding two years, or to a fine not exceeding RM50,000, or to both.

Specifically, any person who fails to comply with an award made by the Gig Workers Tribunal within the specified period commits an offence and shall be liable to a fine not exceeding RM50,000, or to imprisonment for a term not exceeding two years, or to both. In addition, any party who fails to pay the required SOCSO contributions in accordance with the provisions of the Bill shall also be liable, upon conviction, to imprisonment for a term not exceeding two years, or to a fine not exceeding RM10,000, or to both.

While waiting for the Bill to be passed by Dewan Negara and to come into force, companies engaging gig workers should look into reviewing and updating the service agreements with gig workers, establishing an internal dispute resolution mechanism for gig workers and preparing to register gig workers with SOCSO.