Legislating the rights of independent contractors in Malaysia / Mas Ayu Amanina Mohd Anuwar … [et al.]

This paper presents the need to legislate the rights of independent contractor in Malaysia. The content will be focused on three main scopes specifically vicarious liability, termination of work and payment issues. This is because many local independent contractors have experienced problems in these areas mentioned. These situations are far worse when it comes to small companies which also fall within the terms of independent contractors. This problem actually involves the liability of the employer towards independent contractors. The study conducted through research found that these problems are due to the absence of statutory provisions to uphold the rights of independent contractors. Hence, this research also highlights on some importance to propose some recommendations to protect the rights of the independent contractors similar to the situation in the United States of America. Amongst the appropriate recommendation is the very need of legislating the rights of independent contractor, preparing a venue for a speedy dispute resolution mechanism, establishment of the specific association and payment of stipulated interest. Thus, we believe that perhaps it is very timely for Malaysia to introduce the Independent Contractors Act.