MTUC backs Gig Workers Act 2025 as key protection for gig economy


PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has expressed support for the Gig Workers Act 2025, saying the law offers much-needed basic protections for gig workers.

MTUC president Datuk Abdul Halim Mansor said the Act's main purpose is to safeguard gig workers' welfare and that having some legal protection is better than none. He rejected objections from some groups, saying their concerns were not based on the law's actual contents.

He said the Act provides protection by establishing a Gig Workers Consultative Council and a Gig Workers Tribunal to handle issues and disputes involving gig workers. He also stressed that the law does not remove gig workers' right to form or join unions.

He added that labour laws can be updated over time, citing the Employment Act 1955 and the Employees' Social Security (Socso) Act 1969 as examples of laws that were later strengthened to offer better protection.

He added that Malaysia is relatively advanced in regulating gig work and noted that the Human Resources Ministry's initiative had received positive feedback from the International Labour Organisation (ILO) director-general during a recent visit. The ILO is expected to discuss international standards on gig work in June 2026.

Recently, a coalition of 11 NGOs, reportedly involving factions within MTUC and its secretary-general Kamarul Baharin Mansor, called on the government to delay the Act, arguing that it was rushed and that there was insufficient consultation with labour groups.

Human Resources Minister Datuk Seri R. Ramanan responded by questioning MTUC's internal position on the issue. He said the Gig Workers Act, which came into force on March 31, is intended to provide gig workers with basic legal protections in line with changes in the job market.

Ramanan said that about 1.64 million people in Malaysia's gig economy are expected to benefit from clearer rights, more transparent contracts, formal dispute-resolution channels, and improved social security coverage under the Act.

 

 

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