Verbal contracts valid under Gig Workers Bill 2025

Human resources minister Steven Sim says verbal deals are common in the creative sector, often leaving workers unprotected in cases of dispute.

Human resources minister Steven Sim said this provision in the bill addresses a long-standing issue in the arts sector. (Bernama pic)

PETALING JAYA:

 Even written contracts will be recognised under the Gig Workers Bill 2025, passed by the Dewan Rakyat on Aug 28.

The legislation will extend legal protection to more than 1.2 million gig workers in Malaysia, including those in the entertainment industry, Bernama quoted human resources minister Steven Sim as saying.

He said verbal agreements are common in the creative sector, often leaving workers unprotected in cases of dispute.

“While written contracts are the best practice, the bill defines a service agreement as any arrangement, whether written, verbal, expressed or implied,” he said.

Sim said this provision addresses a long-standing issue in the arts sector, adding that verbal or implied contracts will now be legally recognised during grievance proceedings, including at tribunals.

Sim attended 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 Hans Isaac, Finas CEO Azmir Saifuddin Mutalib and Malaysian Professional Film Workers Association president Khalil Saleh.

Sim said the bill also makes it mandatory for part-time and freelance workers to receive pay slips, granting formal recognition of their employment 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.

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.

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 (Perkeso) to enhance worker welfare. - FMT