Gig Worker Agreement (Malaysia)
GIG WORKER AGREEMENT
Contracts Act 1950 (Act 136) | Self-Employment Social Security Act 2017 (Act 789) | Personal Data Protection Act 2010 (Act 709) | Road Transport Act 1987 (Act 333)
THIS GIG WORKER AGREEMENT is made on [Agreement Date]
BETWEEN:
(1) [Platform Name] of [Platform Address] (hereinafter referred to as the "Platform"); AND
(2) [Worker Name] (MyKad No: [Worker NRIC]), contact: [Worker Contact] (hereinafter referred to as the "Worker").
1. INDEPENDENT CONTRACTOR STATUS
1.1 The Worker is engaged as an independent contractor under a contract for services governed by the Contracts Act 1950 (Act 136). The Worker is not an employee, agent, or partner of the Platform, and this Agreement does not create an employment relationship under the Employment Act 1955 (Act 265) or the Industrial Relations Act 1967.
1.2 The Worker may provide services to multiple platforms and clients simultaneously. The Platform does not have exclusivity over the Worker's services.
1.3 The Worker is responsible for their own income tax reporting to LHDN under the Income Tax Act 1967, EPF voluntary contributions under the i-Saraan scheme, and PERKESO self-employed scheme registration under the Self-Employment Social Security Act 2017 (Act 789). SOCSO Registration Status: [SOCSO Registration].
2. SERVICES AND FEES
2.1 Service Type: The Worker agrees to provide [Service Type] services through the Platform's app or system.
2.2 Task Acceptance: [Task Acceptance].
2.3 Fee Structure: [Fee Structure].
2.4 Vehicle/Equipment: [Vehicle/Equipment]. The Worker is responsible for maintaining all required licences, insurance, and permits for their vehicle or equipment.
3. OBLIGATIONS
3.1 The Worker shall comply with the Platform's code of conduct: [Code of Conduct].
3.2 The Worker shall maintain any vehicle or equipment used for service delivery in roadworthy condition, with valid road tax, a motor insurance policy covering commercial use (hire and reward), and all applicable JPJ and APAD licences under the Land Public Transport Act 2010 (Act 715).
3.3 The Worker shall comply with the Personal Data Protection Act 2010 (Act 709) when handling customer data and shall not disclose or misuse customer information obtained through the Platform.
3.4 The Platform shall process the Worker's personal data in accordance with the Personal Data Protection Act 2010 (Act 709) for the purpose of operating the Platform.
4. DEACTIVATION
4.1 The Platform may deactivate the Worker's account for the following reasons: [Deactivation Grounds].
4.2 The Worker may cease using the Platform at any time without penalty by notifying the Platform through the app or in writing.
4.3 Upon deactivation or cessation, the Platform shall pay all outstanding fees accrued but unpaid to the Worker within 14 days.
5. GOVERNING LAW
5.1 This Agreement is governed by the laws of Malaysia. Disputes shall be referred to the courts of Malaysia. The Parties note the Ministry of Human Resources Malaysia's Gig Economy Worker Code of Conduct as a reference framework for fair platform practices.
Platform Representative
________________
Signature
Gig Worker
________________
Signature
Witness
________________
Signature
What Is a Gig Worker Agreement (Malaysia)?
A Gig Worker Agreement in Malaysia sets out the rights and obligations the parties agree to be bound by.
Gig workers in Malaysia are generally classified as self-employed independent contractors under a contract for services governed by the Contracts Act 1950 (Act 136). As independent contractors, gig workers were historically excluded from the statutory protections available to employees under the Employment Act 1955 (Act 265). However, the Malaysian government has taken progressive steps to extend social protection to gig workers. The Employees' Social Security Act 1969 (Act 4) was amended to establish the Self-Employment Social Security Scheme (Skim Perlindungan Sosial Pekerjaan Sendiri, SKSPS) under PERKESO (Social Security Organisation), making certain categories of self-employed and gig workers eligible for SOCSO employment injury benefits.
In 2023, Malaysia enacted legislation to further formalise gig worker protections. The Employment Amendment Act 2022 introduced provisions addressing platform workers, and the Ministry of Human Resources (MOHR) published the Gig Economy Worker Code of Conduct, encouraging platform operators to provide minimum standards of transparency, earnings guarantees, and accident protection. Under the Self-Employment Social Security Act 2017 (Act 789), gig workers in listed occupations — including e-hailing drivers and food delivery riders — are required to contribute to SOCSO under the self-employed scheme.
The fundamental legal question in any gig worker arrangement is whether the worker is genuinely an independent contractor or a de facto employee. Malaysian courts and the Industrial Court apply the multi-factor test from Malaysian cases including Petroliam Nasional Berhad v Nik Ramli Nik Hassan [2004] 2 MLJ 288 to assess the true nature of the relationship, irrespective of the contractual label.
The legal framework governing the Gig Worker Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Gig Worker Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Act 1955 (Act 265) sets the foundational requirements.
When Do You Need a Gig Worker Agreement (Malaysia)?
A gig worker agreement is needed in Malaysia whenever a business or platform engages individuals on a task-based, on-demand, or project basis without creating a conventional employment relationship.
A gig worker agreement is required when a food delivery platform — such as Foodpanda, Grabfood, or Shopee Food — engages delivery riders to complete delivery orders on a per-delivery fee basis, where the rider uses their own motorcycle or car, bears their own fuel and maintenance costs, and works flexible hours of their choosing.
A gig worker agreement is needed when an e-hailing platform (Grab, AirAsia MOVE, MyCar) engages drivers as independent operators, where the driver provides rides through the platform's app and receives a per-trip commission, subject to the Land Public Transport Act 2010 (Act 715) e-hailing vehicle permit requirements and JPJ licensing.
A gig worker agreement is required when a digital services marketplace engages freelance graphic designers, writers, web developers, or SEO specialists for client projects through a platform such as Upwork, Freelancer, or a local marketplace, where work is assigned digitally and delivered remotely.
A gig worker agreement is needed when a home services company engages handymen, plumbers, electricians, or cleaners on a per-job basis through an app-based platform — common in Malaysia's growing home services market through platforms such as Kaodim or ServisHero.
A gig worker agreement is required when a logistics company engages last-mile delivery drivers as owner-operators for e-commerce fulfilment from Shopee, Lazada, or Zalora warehouses in Shah Alam, Subang, or Kuala Lumpur, where the driver signs up for delivery slots and is paid per completed delivery.
Parties in Malaysia should prepare a Gig Worker Agreement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Gig Worker Agreement (Malaysia)
A complete Malaysia gig worker agreement must include the following elements.
Parties and independent contractor status: Full legal names and MyKad numbers of the platform operator and the gig worker. An express statement that the gig worker is an independent contractor, not an employee, and that the agreement does not create an employment relationship under the Employment Act 1955 or the Industrial Relations Act 1967. The agreement should acknowledge the gig worker's right to work for multiple platforms simultaneously.
Nature of services and task allocation: The type of services (delivery, driving, freelance work, home services), the mechanism for task allocation (app-based assignment, bidding, direct assignment), and the gig worker's right to accept or decline individual tasks. Genuine independent contractor status requires the worker to have meaningful freedom to accept or reject work.
Fees and payment terms: The per-task rate, per-hour rate, or commission structure (stated in RM), the payment frequency (weekly, fortnightly, or monthly), and the payment method (bank transfer to the worker's Malaysian bank account — Maybank, CIMB, RHB, etc.). Any deductions for platform commission, insurance, or equipment rental must be clearly stated.
Self-Employment Social Security: Acknowledgement that the gig worker is responsible for registering with PERKESO under the Self-Employment Social Security Act 2017 (Act 789) if engaged in a listed occupation (e-hailing, food delivery), and for making the required monthly SOCSO self-employed contributions. The platform may support or require this registration as a condition of onboarding.
Vehicle and equipment: For delivery and e-hailing gig workers, confirmation that the worker provides their own vehicle, maintains valid road tax, motor insurance, and a Class D or GDL driving licence (as applicable), and complies with PUSPAKOM inspection requirements and Land Public Transport Commission (SPAD/APAD) e-hailing vehicle standards.
Data and platform terms: The gig worker's agreement to comply with the platform's data policies and user terms, and their obligations under the Personal Data Protection Act 2010 (Act 709) when handling customer data during service delivery.
Termination: The platform's right to deactivate the gig worker's account for breach of terms, fraudulent behaviour, or safety violations, and the gig worker's right to cease using the platform at any time without liability.
Additional compliance elements for a Gig Worker Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Gig Worker Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/contracts/gig-worker-agreement-malaysia
"Gig Worker Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/contracts/gig-worker-agreement-malaysia.
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author = {{Forms Legal}},
title = {Gig Worker Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/contracts/gig-worker-agreement-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}Also available for these jurisdictions:
Frequently Asked Questions
Gig workers in Malaysia classified as independent contractors are not entitled to mandatory employer EPF contributions under the Employees Provident Fund Act 1991 or employer SOCSO contributions under the Employees' Social Security Act 1969, as these statutory obligations apply only to employees under a contract of service. However, the Self-Employment Social Security Act 2017 (Act 789) established a mandatory SOCSO scheme for self-employed individuals in designated occupations — including food delivery riders and e-hailing drivers — requiring them to contribute to PERKESO's self-employed scheme for employment injury protection. Since 2022, EPF contributions have also been made available (and in some sectors mandatory) for self-employed gig workers under the EPF Amendment Act 2022 and the i-Saraan voluntary scheme. Gig workers are strongly encouraged to register with PERKESO and make EPF contributions independently.
Yes. The Industrial Court of Malaysia and the civil courts can reclassify a gig worker as an employee if the facts of the working relationship exhibit the hallmarks of employment — including exclusive or near-exclusive engagement with one platform, the platform controlling how, when, and where the work is done, the platform setting prices and conditions without negotiation, and the worker having no ability to run an independent business. In such cases, the platform (as deemed employer) could be liable for back EPF and SOCSO contributions with penalties, unpaid statutory leave entitlements, and reinstatement or compensation for unfair dismissal. The Employment (Amendment) Act 2022 introduced restrictions on the repeated use of fixed-term contracts for permanent work roles, and the Ministry of Human Resources Malaysia has indicated further gig worker reforms are under consideration.
A food delivery rider in Malaysia using a motorcycle or car for commercial delivery purposes must have a motor insurance policy that covers commercial use or hire and reward under the Road Transport Act 1987 (Act 333). Standard private use motor insurance policies (cover note from insurance companies such as Allianz Malaysia, AXA Affin, or Tokio Marine Malaysia) do not cover accidents occurring during commercial delivery operations — meaning a claim may be rejected if the rider was delivering food at the time of the accident. Most platforms (Grab, Foodpanda, Shopee Food) offer or require supplementary accident insurance or group personal accident (GPA) coverage for riders while on active delivery. The gig worker agreement should clearly state the insurance arrangements and each party's responsibilities for maintaining adequate coverage.
Yes. A gig worker in Malaysia who is a tax resident earning above the chargeable income threshold (RM 34,000 gross per year after relief under Section 16 of the Income Tax Act 1967) must register with the Inland Revenue Board of Malaysia (LHDN) and file an annual income tax return. Gig income is assessable as business income under Section 4(a) or professional income under Section 4(b) of the Income Tax Act 1967, depending on the nature of the work. Allowable business deductions include fuel, vehicle maintenance, mobile data costs, platform subscription fees, and self-employed SOCSO contributions. Tax is self-assessed under the Self-Assessment System (SAS) and the annual return (Form B) is due by 30 June each year. LHDN has been increasing scrutiny of gig economy income reporting since 2021.
E-hailing drivers in Malaysia must comply with the requirements of the Land Public Transport Act 2010 (Act 715) and the Commercial Vehicles Licensing Board Act 1987 as administered by the Agensi Pengangkutan Awam Darat (APAD). Requirements include: (1) holding an e-hailing vehicle permit from APAD; (2) holding a valid Vocational Driver's Licence (VDL) issued by the Road Transport Department (JPJ); (3) ensuring the vehicle passes the PUSPAKOM inspection for e-hailing (a separate inspection from standard private vehicle inspection); (4) maintaining a commercial vehicle insurance policy covering hire and reward; and (5) ensuring the vehicle meets the minimum vehicle age and condition standards set by APAD. The platform operator is also required to hold an e-hailing service provider permit. Failure to comply with these requirements exposes the driver to fines, licence suspension, and rejection of insurance claims.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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