Gig Workers Bill Deems Verbal Contracts Valid, Covers Entertainment Industry

KUALA LUMPUR, Sept 8 (Bernama) -- 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.

"While written contracts are best practice, the Bill defines a service agreement as any arrangement, whether written, verbal, express or implied," he said.

He said this addresses a longstanding issue in the arts sector, where verbal or implied contracts will now be legally recognised during grievance proceedings, including at tribunals.

He was speaking at a press conference following a special briefing on the Bill at the National Film Development Corporation Malaysia (FINAS) today.

Also present were Deputy Communications Minister Teo Nie Ching, FINAS chairman Datuk Hans Isaac, chief executive officer Datuk Azmir Saifuddin Mutalib and Malaysian Professional Film Workers Association (PROFIMA) president Khalil Saleh.

Sim said the Bill also stipulates that employers must provide payslips to part-time or freelance workers upon request, thereby formally recognising their rights.

He added that the lack of a clear legal definition for gig workers had 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 are required to comply under Section 13.2. Failure to do so constitutes an offence under Section 13.3, punishable by up to two years' imprisonment or a fine of up to RM50,000.

Payment rates and minimum contract standards will be addressed through a proposed Tripartite Consultative Council, allowing negotiations between hiring entities, such as producers, and workers.

Sim also noted that in bankruptcy cases, such as with film producers or investors, gig worker wages must take priority over payments to other creditors.

He stressed 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 it is gazetted and enforced. It also mandates contributions to the Social Security Organisation (SOCSO) to enhance worker welfare.

-- BERNAMA