GIG WORKERS ACT 2025 A MILESTONE FOR WORKER PROTECTION - GEM

KUALA LUMPUR, March 31 (Bernama) -- The Gig Workers Act 2025 (Act 872), which came into effect today, is a historic step towards recognising and protecting the gig community’s welfare in the country, said the Malaysian E-Hailing Coalition (GEM).

GEM chief activist Masrizal Mahidin said the act’s implementation proves that labour reforms are underway, in line with Prime Minister Datuk Seri Anwar Ibrahim's commitment to build a fairer, more inclusive, and resilient employment ecosystem.

"Malaysia has the potential to become a model at both regional and global levels if the Act is implemented effectively and consistently.

bootstrap slideshow

"Let us together shape a future for gig workers that is better protected, sustainable, innovative, and competitive," he said in a statement today.

Masrizal also expressed GEM's appreciation to Human Resources Minister Datuk Seri R. Ramanan for introducing the Act, which is seen as a proactive step in championing the plight of p-hailing and e-hailing workers.

Passed in Parliament last year, the Act provides a legal framework to protect individuals working on e-hailing platforms, including access to social protection, dispute resolution mechanisms and fairer wage structures.

Its enforcement is expected to benefit about 1.64 million workers in the gig economy.

Prior to the enforcement of this act, gig workers operated under a contract-for-service arrangement, which classified them as self-employed individuals.

This resulted in a lack of protection under the Employment Act 1955, including the absence of mandatory contributions to the Employees Provident Fund (EPF) and the Social Security Organisation (Perkeso) by e-hailing platform companies.

-- BERNAMA