Gig Workers Bill Deems Verbal Contracts Valid, Covers Entertainment Industry

Kuala lumpur: The Gig Workers Bill 2025, passed by the Dewan Rakyat on Aug 28, will extend legal protection to more than 1.2 million gig workers in Malaysia, including those in the entertainment industry, even in the absence of written contracts. Human Resources Minister Steven Sim Chee Keong said verbal agreements are common in the creative sector, often leaving workers unprotected in cases of dispute.

According to BERNAMA News Agency, the Bill defines a service agreement as any arrangement, whether written, verbal, express or implied, addressing a longstanding issue in the arts sector where verbal or implied contracts will now be legally recognized during grievance proceedings, including at tribunals. Sim highlighted this during a press conference following a special briefing on the Bill at the National Film Development Corporation Malaysia (FINAS) today. Present at the briefing were Deputy Communications Minister Teo Nie Ching, FINAS chairman Datuk Hans Isaac, CEO Datuk Azmir Saifuddin Mutalib, and Malaysian Professional Film Workers Association (PROFIMA) president Khalil Saleh.

Sim stated that the Bill also mandates that employers provide payslips to part-time or freelance workers upon request, formally recognizing their rights. The absence of a clear legal definition for gig workers has left many vulnerable, with verbal contracts, wage-setting mechanisms, and payslip provisions among the key concerns raised by the sector. Under Section 13.1 of the Bill, gig workers can request income statements from hiring entities, which must comply under Section 13.2. Non-compliance constitutes an offence under Section 13.3, punishable by up to two years' imprisonment or a fine of up to RM50,000.

The Bill addresses payment rates and minimum contract standards through a proposed Tripartite Consultative Council, facilitating negotiations between hiring entities, such as producers, and workers. Sim noted that in bankruptcy cases, such as with film producers or investors, gig worker wages must take priority over payments to other creditors. He emphasized that Malaysia cannot adopt a phased implementation model, like Singapore, which initially focused only 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 is scheduled for tabling in the Dewan Negara tomorrow before being gazetted and enforced. It also mandates contributions to the Social Security Organisation (SOCSO) to enhance worker welfare.