HR COMPLIANCE ON BENEFITS, WAGES, AND COMPENSATION FOR CONTINGENT WORKERS: A CRITICAL ANALYSIS OF MALAYSIA'S LEGAL FRAMEWORK

Abstract

The exponential growth of contingent work arrangements in Malaysia's digital economy has exposed significant gaps in the nation's labor law framework. This paper critically examines human resource compliance concerning benefits, wages, and compensation for contingent workers including freelancers, gig workers, and independent contractors within Malaysia's regulatory landscape. Drawing upon statutory analysis, case law examination, and comparative regulatory approaches, this study argues that the Employment Act 1955's binary classification system (employee versus independent contractor) is fundamentally inadequate for addressing the realities of contemporary contingent work. The paper critiques recent legislative developments, including the Gig Workers Act 2026, while proposing comprehensive reforms to ensure equitable protection for Malaysia's contingent workforce. The analysis reveals that current compliance mechanisms place disproportionate burdens on workers while providing employers with ambiguous safe harbors, ultimately perpetuating systemic vulnerabilities among approximately 1.2 million Malaysian gig workers.