The bill makes it clear that gig workers must get fair terms in their agreements, be told of their pay and tasks in advance, and their services cannot be terminated without good cause.
Workers must also be paid within seven days if no timeline is set in their agreement with platforms.
The bill, which is aimed at providing protection and recognition for workers in the sector, was tabled for its first reading on Monday by human resources minister Steven Sim.
It was passed with a voice vote.
Key elements include an official definition of gig workers, setting minimum compensation, establishing a complaints mechanism, and ensuring social security protection through mandatory contributions to Perkeso.
In his winding-up address, Sim said the government might eventually extend EPF contributions to gig workers.
“We recognise that for this first phase, the social protection tool is Perkeso. But in the future we can consider EPF, as suggested by the MPs,” he said.
Sim stressed that the bill had strong backing from unions, adding that the Malaysian Trades Union Congress (MTUC) and other groups representing about 1.4 million workers had given their support.
The bill also establishes a new consultative council for gig workers, where workers and firms can sit as equals to decide on fair pay and standards.
“Not the government, not the companies, but both sides will sit together,” Sim said.
He added that the government is also studying the formation of a Gig Economy Commission to support the law, but gave the assurance that this would not clash with existing regulations.
Sim reminded MPs that gig work was broader than food delivery and e-hailing. The new law also covers short-term workers in film, music, beauty, and media sectors that for decades had no legal protection.
On account suspensions, Sim said platforms could no longer deactivate workers without due process.
“This law brings to an end the time when platforms had full power to cut off accounts with no remedy. Now workers must receive notice, the right to be heard, and if cleared, half their daily pay.”
He also clarified that workers using multiple apps would not face double contributions.
“If you work for three platforms, all Perkeso payments go into a single account under your name.”
Sim dismissed claims that the law would harm the economy, citing global studies and Malaysia’s own record on minimum wage increases.
“Evidence shows no damage to jobs or growth. In fact, better pay leads to higher productivity,” he said.
“This bill is not to please big firms. It is to protect workers while keeping our economy strong.”