Malaysia’s Gig Workers Bill 2025: Verbal contracts now legally binding in entertainment sector
Article Date: 2025-09-10T10:03:44+00:00
Article URL: https://www.humanresourcesonline.net/malaysia-s-gig-workers-bill-2025-verbal-contracts-now-legally-binding-in-entertainment-sector
Article Image:
Summary
Malaysia’s Gig Workers Bill 2025, passed by the Dewan Rakyat on 28 August and published on 10 September 2025, extends legal protections to more than 1.2 million gig workers across sectors including the creative and entertainment industries. The law explicitly defines a “service agreement” to include written, verbal, express or implied arrangements, meaning verbal contracts can be relied on in grievance proceedings and tribunals.
Key measures include the right for part-time and freelance workers to request payslips and income statements (Section 13.1), criminal penalties for non-compliance (Section 13.3) of up to two years’ imprisonment or a RM50,000 fine, mandated SOCSO contributions, and the creation of a Tripartite Consultative Council to negotiate pay rates and minimum contract standards. The Bill also prioritises gig workers’ wages in insolvency situations involving producers or investors.
Key Points
- The Bill defines service agreements as written, verbal, express or implied, making verbal contracts legally actionable.
- Verbal agreements common in the creative sector can now be used in grievance proceedings and tribunals.
- Gig workers can request payslips and official income statements; failure to comply risks up to two years’ jail or a RM50,000 fine under Section 13.3.
- The legislation proposes a Tripartite Consultative Council to set payment rates and minimum contract standards between workers and hiring entities.
- SOCSO contributions are mandated, giving gig workers enhanced welfare protections.
- Gig worker wages are to be prioritised if producers or investors become insolvent.
- The Bill aims to protect over 1.2 million gig workers and covers a broader range of sectors than some phased approaches adopted elsewhere.
Context and relevance
This Bill is part of a broader global trend to regulate the gig economy and extend basic labour protections to non-traditional workers. For Malaysia, the move recognises that gig work isn’t limited to e-hailing or delivery services — the creative and entertainment sectors frequently rely on verbal arrangements that left workers exposed. By formalising verbal contracts and enforcing payslip/income statement rights, the law reduces ambiguity in disputes and strengthens enforcement tools against non-compliant hiring entities.
Employers, producers and HR professionals in entertainment and creative industries will need to review engagement practices, record-keeping and payment processes to ensure compliance and avoid severe penalties. The Tripartite Consultative Council could also reshape negotiation dynamics around pay and contract minimums.
Why should I read this?
Quick and simple: if you work gigs or hire freelancers in Malaysia, this changes the game. Verbal agreements now carry legal weight, you can demand payslips and income statements, and there are real penalties if hiring entities ignore those requests. Read it so you don’t get caught out.
Author note
Punchy take: this is a significant shift — protecting 1.2m+ workers and bringing creative-sector gig work into the same legal frame as other labour. If you’re involved in contracts, production or talent management, it’s essential reading: policies and paperwork will need updating fast.