Gig Workers Act 2025 comes into force today


-Bernama filepic

PUTRAJAYA: The Gig Workers Act 2025 (Act 827), which takes effect on Tuesday (March 31), introduces a dedicated legal framework to regulate and protect workers in Malaysia’s gig economy.

Human Resources Minister Datuk Seri R. Ramanan said the law is intended to provide basic legal safeguards for an estimated 1.64 million individuals engaged in platform-based and other forms of gig work.

Under the Act, gig workers may file complaints regarding issues such as payments, account suspensions and alleged breaches of service agreements. Complaints can be lodged through the Human Resources Ministry’s e-Aduan system on its website, or at any department or agency under the ministry.

According to the ministry, all complaints will be reviewed, recorded and directed to the relevant agencies for follow-up. Complainants will be able to track the status of their cases, which are targeted for resolution within 21 working days.

If disputes cannot be settled through internal channels or conciliation at the Industrial Relations Department, they may be referred to a newly established Gig Workers Tribunal, which is tasked with providing an independent avenue for resolving such cases.

The Act also provides for the creation of a Gig Advisory Council comprising 26 members from various backgrounds, representing the government, gig workers and contracting entities. The council is scheduled to begin operations on Wednesday (April 1).

The council’s role includes advising on matters such as minimum income rates, formulas and standards that may differ across sectors, regions and types of services. It is also expected to serve as a forum for dialogue and consultation on policies and issues affecting the gig sector.

In addition, the Malaysian Gig Economy Commission (SEGiM) has been established under the Act as the statutory body responsible for overseeing the sector. SEGiM is mandated to regulate the gig economy and support the implementation of measures related to the rights and welfare of gig workers.

Details on specific regulations, enforcement mechanisms and implementation timelines under the Act are expected to be announced in subsequent guidelines and subsidiary legislation.

 

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