Cabinet approves Malaysian Gig Economy Commission

 The body will act as the primary authority to implement, coordinate, and monitor policies concerning freelance, casual, online and on-demand workers.

The commission will be set up to support the Gig Workers Act, expected to come into force this year, which provides protections for casual and freelance workers such as delivery riders.

PETALING JAYA:

 The Cabinet has approved the formation of the Malaysian Gig Economy Commission to look after the interests of freelance, casual and part-time workers such as delivery riders and drivers and those who work for on-demand platforms.

Approval was granted by the Cabinet at its meeting last week, deputy prime minister Ahmad Zahid Hamidi said.

The government had been studying the formation of the commission to support the Gig Workers Act 2025, which sets out protections such as Socso contributions for the estimated 1.2 million people who engage in freelance and casual work for digital and online on-demand platforms. The law was gazetted on Dec 31 and is expected to come into force this year.

The new commission will act as the primary authority to implement, coordinate, and monitor policies concerning the gig economy, while also supervising industry standards and promoting self-regulation among platforms.

The law allows the workers to form associations, prohibits discrimination, and requires clear contract terms to be provided, and payment for services rendered within seven days of completion, without unauthorised deductions. It also provides for a tribunal to be set up to resolve disputes, with binding awards that can include compensation or reinstatement. - FMT