The new decade began with an unprecedented global pandemic, transforming employment through accelerated digitalisation. As the economy faces further challenges, digitalisation has become essential for organizations to operate and survive in this new landscape. This shift from physical to digital workspaces is reshaping traditional employment, thus these changes bring legal implications for employment contracts and business operations, which remain rooted in older frameworks despite the digitalisation shift. Many still favour traditional physical spaces; however, digitalisation is now a permanent and integral feature, leaving no choice but to adapt. This study assesses the flexibility of Malaysia’s current employment laws and regulations in addressing digitalisation’s impact on both employer and employees. This study adopt doctrinal approach is applied to examine employment contracts,: terms and conditions, safety at work, and the protections offered to digital employees and entrepreneurs. Findings indicate a need for legislative reform to accommodate the evolving digital landscape and support the rights and benefits parties in the employment. A holistic approach that embraces digitalisation in employment is proposed to ensure comprehensive protections and opportunities.