What employment rights are denied to Malaysian gig workers by the new Act?

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Malaysian Gig Workers Act 2025 Denies Standard Employment Protections

The Malaysian Gig Workers Act 2025 denies gig workers fundamental employment rights typically afforded to traditional employees. Specifically, the Act does not mandate a minimum monthly wage, paid annual leave, or medical leave for gig workers. Furthermore, it excludes them from statutory employer contributions to the Employees Provident Fund (EPF).
Lack of Minimum Wage and Leave Entitlements

Under the Gig Workers Act 2025, gig workers are not guaranteed a legally mandated minimum monthly wage. This contrasts with traditional employment where minimum wage laws provide a baseline income floor. Additionally, the Act does not grant gig workers access to paid annual leave or paid medical leave, meaning they do not receive compensation when taking time off for vacation or illness.
Exclusion from Statutory Provident Fund Contributions

The legislation also fails to ensure that gig workers benefit from statutory employer contributions to the Employees Provident Fund (EPF). In conventional employment, employers are legally obligated to contribute a percentage of an employee's salary to their EPF accounts, forming a crucial part of long-term retirement savings. The Gig Workers Act 2025 omits this employer responsibility for gig economy platforms.
Independent Contractor Status Reinforces Exclusions

A central tenet of the Gig Workers Act 2025 is its explicit definition of a "service agreement" as distinct from an employment contract. This reinforces the classification of gig workers as independent contractors, thereby exempting platforms from providing the aforementioned employment protections and contributions. This legal framing creates a "third worker category" that shields tech platforms from the responsibilities associated with traditional employer-employee relationships.

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What employment rights are denied to Malaysian gig workers by the new Act?

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