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Malaysia's Gig Workers Bill 2025: Verbal contracts now legally binding in entertainment sector

Malaysia's Gig Workers Bill 2025: Verbal contracts now legally binding in entertainment sector

The new legislation aims to protect over 1.2mn gig workers, including freelancers, even if they don’t have written contracts.

As reported by Bernama, Malaysia’s Gig Workers Bill 2025, passed by the Dewan Rakyat on 28 August, will extend legal protections to gig workers across multiple sectors.

Steven Sim Chee Keong, Human Resources Minister provided an insight into the development, saying verbal agreements are common in the creative sector, leaving workers vulnerable when disputes occur.

The Bill, thus, defines a service agreement as any arrangement, written, verbal, express, or implied. This means verbal contracts can now be used in grievance proceedings and tribunals.

The legislation also requires employers to provide payslips to part-time or freelance workers if requested.

Gig workers can request income statements from hiring entities under Section 13.1. Non-compliance is an offence under Section 13.3, punishable by up to two years in jail or a RM50,000 fine.

The Bill proposes a Tripartite Consultative Council. This is expected to allow workers and hiring entities, such as producers, to negotiate payment rates and minimum contract standards.

Minister Sim said gig worker wages must take priority if producers or investors go bankrupt.

He added that Malaysia cannot take a phased approach like Singapore, which initially focused on e-hailing and delivery riders.

“The gig economy isn’t limited to new sectors. It includes the creative industry, and these workers deserve equal protection,” he said.

The Bill was tabled in the Dewan Negara before being gazetted and enforced. It also mandates contributions to SOCSO, giving gig workers access to enhance worker welfare.


ALSO READ: KESUMA tables first reading of Gig Workers Bill 2025 in Parliament


Lead image / KESUMA Facebook

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