Malaysia

Gig Workers’ Bill 2025 passed after seven years in the making

Gig economy enters a new chapter as the Dewan Rakyat passes the landmark Gig Workers’ Bill 2025, granting over 1.2 million workers the right to negotiate wages and working conditions for the first time

Updated 1 year ago · Published on 28 Aug 2025 5:58PM

Gig Workers’ Bill 2025 passed after seven years in the making
The Bill now carries a formal definition of gig workers, the establishment of a tripartite council to address income-related issues and a framework for dispute resolution - August 28, 2025

THE Dewan Rakyat has passed the Gig Workers’ Bill 2025, marking a historic turning point for Malaysia’s gig economy after seven years of legislative development.

Passed by voice vote on the final day of the Second Meeting of the Fourth Session of the 15th Parliament, the Bill introduces critical protections for more than 1.2 million gig workers across the country. These include the right to collectively negotiate pay and employment terms.

The Bill, comprising 112 clauses, was tabled by Human Resources Minister Steven Sim and debated by 23 Members of Parliament from both sides of the political aisle.

Four key elements underpin the legislation: a formal definition of gig workers, the establishment of a tripartite council to address income-related issues, a framework for dispute resolution, and provisions for social security protection.

During the winding-up of the debate, Sim took aim at opposition members, accusing them of inconsistency and placing corporate concerns above worker welfare.

“For instance, Rompin (Datuk Abdul Khalib Abdullah) asked us to study Spain’s model for gig work legislation, while Machang (Wan Ahmad Fayhsal Wan Ahmad Kamal) warned against following Spain for fear of deterring investors,” said the Bukit Mertajam MP.

“There are some who seem more worried about the corporate perspective, suggesting we delay the Bill unless it satisfies corporate interests. But we must understand — this Bill is designed to protect gig workers while ensuring the competitiveness of our economy.”

On the proposed formation of the Malaysian Gig Economy Commission (SEGiM), Sim clarified that it is a separate initiative and not in conflict with the new law.

“The Gig Workers’ Bill 2025 focuses on labour protection, while the government has decided that the SEGiM study will be led by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi,” he said.

“I’m confident he, as one of the foremost advocates for gig workers, will ensure SEGiM’s terms, powers, and scope complement the Bill.”

Sim also dismissed claims that the Bill lacks enforcement power.

“This is incorrect. Enforcement will be carried out by the Department of Labour, the Industrial Relations Department, the Gig Workers Tribunal, and SOCSO, all of which already have existing enforcement arms.”

He concluded by reiterating that the Bill and SEGiM are “two separate matters” and that the government is actively studying the establishment of the Commission. - August 28, 2025

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