By Adrian Anthony Pereira

KUALA LUMPUR, Malaysia: North South Initiative notes that there are some quarters heeding a call to derail the Gig Workers Bill based on the assertion that the Bill will impose drastic and immediate cost increases on workers, consumers and platforms.

That claim is unfounded. NSI would like to set the record straight. We strongly urge the Members of Parliament to act in the interest of justice and economic fairness by passing this critical Bill without delay. 

We further recommend that the passing include a clear and phased implementation plan to ensure a smooth transition for all stakeholders.

The protection of gig workers rights cannot be postponed. The Bill creates clear rights and procedures (payslips, timing of payment, rules on deductions, deactivation safeguards, internal grievance and mediation routes) and establishes a ‘Tribunal’ and ‘Consultative Council’ to set sectoral standards on gig workers. 

It is primarily about legal clarity and dispute-resolution, which will not result in an immediate cost increase.

The draft explicitly protects workers’ rights to receive itemised payslips, limits arbitrary deductions, ensures work benefits, and requires fair processes for deactivations which are measures that reduce hidden costs (late-pay penalties, litigation, turnover) rather than create uncontrolled new burdens.

The Bill establishes a ‘Tribunal’ as a mechanism for grievance and mediation routes which is a targeted, low-cost dispute resolution mechanism that generally lowers enforcement and litigation costs for both workers and platforms. The Bill sets the path for gig workers to unionise in the future.

Current Practices of Other Countries

Malaysia is not inventing a new policy out of thin air; the Bill follows the current practice of phasing, consultation, and dispute resolution, tailored to the Malaysian context.

Singapore (Platform Workers / Platform Workers Act 2024): Singapore phased in social protection contributions and provided the Platform Workers CPF Transition Support (PCTS) mechanism to offset the initial impact on take-home pay for lower-income platform workers. 

This approach is an explicit example of phasing combined with targeted transitional support, rather than an abrupt cost
imposition. Adopting a similar phased support mechanism would protect low-income gig workers in Malaysia while allowing platforms to adapt.

European Union (Platform Work Directive 2024/2831): The EU Directive sets transparency obligations including algorithmic management. The EU approach emphasises clarity and phased national implementation, which reduces litigation and market confusion. Malaysia’s Bill mirrors that emphasis on clarity (payslips, Tribunal, Council) rather than sudden reclassification without safeguards. 

United Kingdom (Uber v. Aslam, 2021): Court ordering minimum guarantees (minimum wage for logged-on time, holiday pay) increased driver costs in the short term but resulted in normalized operating models and improved retention. In other words, the service continues to function without market collapse. The key lesson: clear rules drive adaptation, not collapse.

ILO Decent Work Agenda: Global tripartite labour body recommended extending social protection, improving algorithmic transparency, and creating tailored dispute-resolution mechanism for platform work to lower systemic social and business costs. Those recommendations align closely with the Bill’s architecture.

Call to Action

The Gig Workers Bill is not a sudden attack on Malaysia’s digital economy. It is a structured, rights based framework to end vague practices, provide speedy dispute resolution, and give both workers and platforms the legal certainty they need.

North South Initiative urges Members of Parliament to pass the Gig Workers Bill, while adopting a phased implementation plan, targeted transitional supports, and robust data transparency so Malaysia’s gig economy can be fairer, safer, and more sustainable.

*Adrian Anthony Pereira is the Executive Director/Co-Founder of the North South Initiative (NSI).*