Gig workers in Malaysia could soon get a platform to formally challenge companies over commission payment. Malaysia’s gig economy has grown exponentially in the last decade, making up almost a fifth of the workforce in 2023, tracking a similar expansion in tech-based firms. However, there has been growing frustration among those working in the gig economy, as rising interest rates and increasing competition have led tech-companies in the sector to cut down on the once-generous payments from the early days of the sector.
As the companies argue that gig workers are self-employed contractors, this also means they do not have the same legal protections and avenues that formal workers have to challenge decisions by their employers.
Human Resources Minister Steven Sim described it as fundamental to ensure gig workers in Malaysia receive fair wages, social security protection and welfare assistance. The Ministry is understood to have already drafted a paper outlining out how the arbitration mechanism might look like and operate. The idea, one of the key proposals detailed out in an interim report for a policy framework for the setting up of a Gig Workers Commission, is set to be presented at Wednesday’s Cabinet meeting. Sim confirmed the matter yesterday and was reported saying the report aims to seek approval for a more detailed plan towards establishing the commission. The interim report will be the first document that would define the scope of the Gig Workers Commission, which Anwar plans to present in Parliament next month. However, Sim was reported saying that the final report may only be ready in August.
