KUALA LUMPUR, Dec 2 — The government will amend the Employment Act 1955 to more clearly define employers and employees in order to account for the rise of the gig economy, said Deputy Human Resources Minister Datuk Awang Hashim.

However, he did not tell Parliament if such what classes of workers would be included and for what purpose, when he said a new section would be added to the Employment Act (Act 265) for this reason.

“The ministry is currently in the process of amending Act 265. Among the proposed amendments to the Act is to include a new Section 101(c) which provides a definition of employee and employer. The proposed amendment is one of the government’s efforts to clarify employment relations in the future, like the gig economy.

“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.


“Act 265 does not cover a contract for service relationship as signed by an employee involved in an independent contract, or a contract for service such as the p-hailing sector.

“However, in order to safeguard their welfare, social safety net for p-hailing sector workers are provided under the Self-employment Social Security Scheme, namely SKSPS,” Awang said.

He later said that his ministry was holding engagement sessions with stakeholders such as service providers and industry players, in order to study whether there is a need to for new legislation specifically to protect and safeguard the interests and welfare of those involved in the gig economy.


“The government will also refine the additional forms of protection required by workers in the economy gig covering the p-hailing sector, to ensure that these groups receive appropriate protection,” he added.

Awang was replying to Machang MP Datuk Ahmad Jazlan Yaakub, who had asked to state the measures to be implemented by the ministry in addressing the issue of p-hailing workers not having social security, fixed salaries, proof of employment, and other legal protections accorded to traditional workers.