Previously, gig workers fell into a grey area because they were not considered employees under Malaysian law despite engaging in work. Hence, they lacked protection and rights.

With the passing of the new bill, this has changed. Here are seven things you should know about the Gig Workers Bill.

1. Definition of ‘gig worker’

This is perhaps the most important development: a clear agreement on what a gig worker is. According to the bill, a gig worker is defined as someone who:

• is a citizen or permanent resident of Malaysia;
• has a service agreement with a platform provider (ride-hailing, food delivery, etc) or non-platform provider;
• receives money for services rendered.

For now, the government defines you as a gig worker if you work for the following industries and job scopes:

• actors and those involved in film activities;
• singers, musicians, composers, lyricists;
• make-up artists, stylists and hairstylists;
• sign-language interpreters, language interpreters or translators, transcribers;
• freelance journalists, stringers;
• pre/postnatal, palliative, elderly and rehabilitation caregivers;
• freelance photographers and videographers.

That said, there are still gaps and uncertainties – for example, if you work for an overseas platform, it is unclear whether you will be classified as a gig worker in Malaysia.

Being a freelance writer or content creator could technically qualify you as a journalist, but it could also be argued that this is not the case. In this context, freelance tuition teachers are probably not considered gig workers, either.

The bill, however, does allow the authorities to alter and refine the definition in the future.

2. Basic protection for contracts

One of the crucial provisions in the bill pertains to contracts signed with a platform, providing a minimum standard for gig-worker agreements. If the terms and conditions are “worse” than the basic rights and protections stated in the bill, then the contract will not be applicable.

This applies to contracts drawn up before and after the bill was introduced. So, if you signed a contract in the past that doesn’t offer you basic rights and protections, it can be declared null and void.

3. Socso contributions

Finally, social security protection for gig workers! A gig worker who has a service agreement with a platform provider can now contribute to Socso. The provider is obligated to ensure the worker is:

• registered under the self-employment social security scheme;
• given the ability to make deductions from his or her earnings to Socso.

Previously, a gig worker would have to take care of Socso contributions on their own or forego them altogether. Now, platform providers will assume that responsibility, not unlike a regular employer.

4. No non-compete conditions

It is an open secret in the gig industry that many platforms impose non-compete conditions, which prevent gig workers from signing up with other competitors. For many, this limits their ability to make ends meet.

Now, the bill effectively says a platform provider cannot impose conditions that restrain a worker’s right to work for other companies. So, if this condition or restriction is in your contract, you can bring this up with the authorities.

5. Gig workers can unionise

While unions are a tricky subject in Malaysia, the bill does provide rights to gig workers to organise, form, and join unions.

If a contract with a platform provider contains terms and conditions that restricts the rights of the gig worker to join a union or their activities, it will be void.

6. Legal and mediation services

As disputes can arise between a gig worker and a platform provider, a Gig Workers Tribunal has been established to help resolve them, providing an accessible alternative to court proceedings.

A gig worker can bring their grievances to a conciliator, who will try to mediate the dispute. If this doesn’t work out, the conciliator will bring the matter to the tribunal.

If the tribunal is unable to resolve the dispute, the gig worker can bring the matter to the Malaysian courts.

7. Council to study, propose, and make changes

One of the stickiest points about the gig industry is that there are no standards or requirements when it comes to minimum earnings. But the issue of minimum wage is complicated as the gig economy involves many sectors and industries.

As such, the bill proposes the formation of a council that will study, propose and make recommendations to the government regarding the minimum earnings rate.

This council would also be allowed to revise the rate every few years, just like the National Wages Consultative Council does for Malaysian workers and the minimum wage.

This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.

Read more articles from MyPF here.