Malaysia
Gig Workers Act 2025 gazetted
Impact date: Expected to come into force end of March 2026 Malaysia’s historic Gig Workers Act 2025 has been gazetted, marking the introduction of Malaysia’s first standalone legislative framework regulating the engagement and protection of gig workers.
The Act establishes a statutory regime governing the relationship between gig workers and platform operators, including provisions relating to registration, minimum standards of protection, social security coverage, dispute resolution mechanisms, and the establishment of a Gig Workers Council to oversee implementation.
While the Act has been gazetted, it has not yet come into force. The legislation will take effect on a date to be appointed by the Minister by notification in the Gazette. The Government has indicated that enforcement is expected to commence at the end of March 2026, following the completion of administrative and regulatory arrangements required for implementation.
The introduction of specific legislation for gig workers means that workers in the gig economy no longer fall through the gaps in terms of entitlement to basic legal rights.
Employer implications/action needed Parties who engage gig workers falling within the scope of the Act should review their existing contracts and engagement processes to ensure that they comply with the Act when it comes into force.
Employer risk Non-compliance may result in claims or regulatory action and penalties. The Act provides for penalties of up to a fine of RM50,000, or imprisonment of up to two years, or both.
Link
Gig Workers Act 2025: https://jtksm.mohr.gov.my/sites/default/files/2026-01/Act%20872%20-%20GIG%20WORKERS%20ACT%202025.pdf
Human Resources Ministry to set up one-stop labor centre in Penang
Impact date: Awaited, still no update in Q1 2026. The Human Resources Ministry will be setting up a one-stop labor centre in Penang. This pilot project will consolidate the work scope currently handled by numerous offices such as the labor office, Industrial Relations Department, Industrial Court, Trade Union Affairs Department, and Social Security Organization. The long-term plan is for similar one-stop centres to be opened nationwide.
Employer implications/action needed Once the one-stop centre is operational, employers in Penang will have to ensure that any employment administrative or regulatory matters are redirected accordingly.
Employer risk N/A
Link N/A
Employees’ Social Security (Amendment) Bill 2025 passed
Impact date: Awaited, still no update in Q1 2026. The Employees’ Social Security (Amendment) Bill 2025 was passed by the Dewan Rakyat (House of Representatives) in November 2025. The Bill seeks to amend the Employees’ Social Security Act 1969, introducing a new social security scheme — the “Non-Employment Accident Injury Scheme” — which will extend social security protection to employees for accidents which occur outside working hours, and which are not employment-related.
The Bill still has to be passed by the Dewan Negara (Senate), and then officially published in the Gazette, before an implementation date is fixed.
Employer implications/action needed All employers should monitor the progress of this Bill to ensure that they comply with the Bill when it comes into force.
Employer risk Non-compliance may result in claims or regulatory action and penalties.
Link List of Bills on Parliament website: https://www.parlimen.gov.my/bills-dewan-rakyat.html?uweb=dr&lang=en#
Employment Insurance System (Amendment) Bill 2025 passed
Impact date: Awaited, still no update in Q1 2026. TheThe Employment Insurance System (Amendment) Bill 2025 was passed by the Dewan Rakyat (House of Representatives) in November 2025. The Bill seeks to amend the Employment Insurance System Act 2017 to extend its scope to cover employment services to any person and to implement programs, schemes, measures, or financial assistance relating to the active labor market to any person. The Bill also seeks to improve the benefits to insured persons, and strengthen the governance, process and operation of the existing Act.
Other improvements proposed under the Bill include increased benefit rates, and the introduction of a new benefit — the Mobility Assistance Allowance — pursuant to which contributors who lose their jobs will be entitled to protection and training support of up to RM25,000. The Bill also proposes increases to the Early Re-employment Allowance, training allowances, and fees.
The Bill still has to be passed by the Dewan Negara (Senate), and then officially published in the Gazette, before an implementation date is fixed.
Employer implications/action needed All employers should monitor the progress of this Bill to ensure that they comply with the Bill when it comes into force.
Employer risk Non-compliance may result in claims or regulatory action and penalties.
Link List of Bills on Parliament website: https://www.parlimen.gov.my/bills-dewan-rakyat.html?uweb=dr&lang=en#
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