Malaysia's HR ministry is looking to get gig workers covered under the Employment Act

This amendment proposal is part of the Government's efforts to clarify future employment relationships such as those with the gig economy, Deputy Human Resources Minister Datuk Awang Hashim has said.

Malaysia's Ministry of Human Resources (Kementerian Sumber Manusia, MOHR) is in the process of amending the Employment Act (Act 265) to include a new section, 101(c), which allocates the specification of "employees" and "employers".

This amendment proposal is part of the Government's efforts to clarify future employment relationships such as those with the gig economy, Deputy Human Resources Minister Datuk Awang Hashim said on Thursday (2 December 2021).

As cited by Malaymail, speaking in Parliament, Deputy Minister Awang said: "The government acknowledges that currently, workers in the p-hailing sector are not covered under labour laws such as the Employment Act 1955 and Act 265. The coverage of Act 265 is specific to workers defined under the first schedule of Act 265, who enter into a contract of service and agree to serve the employer."

He explained that the Act does not cover a contract-for-service relationship assigned by an employee involved in an independent contract, or a contract for service such as the p-hailing sector.

However, he added, in order to safeguard the welfare of these gig workers, they are provided a social safety net under the Self-employment Social Security Scheme (SKSPS). 

As shared further by Malaymail, the deputy minister noted that the ministry is currently holding engagement sessions with stakeholders, including service providers and industry players, to study if there is a need for a "new legislation specifically to protect and safeguard the interests and welfare of those involved in the gig economy."

[ALSO READ: Case study: How foodpanda Malaysia is driving workforce DEI, from women employees to delivery riders]

Photo / Deputy HR Minister Datuk Awang Hashim's Facebook