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12 Months Fixed Term Contract for Malaysia

12 Months Fixed Term Contract Template for Malaysia

A Malaysian fixed-term employment contract template designed to establish a defined-period employment relationship in compliance with the Employment Act 1955 and related Malaysian employment legislation. This document outlines the terms and conditions of employment for a specific duration of twelve months, including statutory requirements for benefits, working hours, leave entitlements, and termination provisions. The contract incorporates Malaysian-specific elements such as EPF contributions, SOCSO coverage, and EIS requirements, while maintaining flexibility to accommodate various industries and role types.

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What is a 12 Months Fixed Term Contract?

This document serves as a standardized template for creating 12 Months Fixed Term Contract employment agreements in Malaysia. It is specifically designed for situations where employers need to engage staff for a predetermined period, such as project-based work, seasonal requirements, or temporary replacements. The template ensures compliance with Malaysian employment laws, including the Employment Act 1955, Minimum Wages Order, and social security regulations. It includes all mandatory provisions required by Malaysian law while maintaining flexibility to be customized for different industries and position levels. The document is particularly useful for companies establishing fixed-term employment relationships where the duration and terms need to be clearly defined from the outset.

What sections should be included in a 12 Months Fixed Term Contract?

1. Parties: Identification of the employer and employee with complete details as required under Malaysian law

2. Background: Context of the employment relationship and basis for the fixed-term arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Duration of contract, position title, and employment classification

5. Duties and Responsibilities: Main responsibilities, reporting structure, and performance expectations

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Hours of Work: Standard working hours, overtime provisions, and rest days as per Employment Act

8. Remuneration: Salary, payment schedule, and statutory deductions (EPF, SOCSO, EIS, income tax)

9. Leave Entitlements: Annual, medical, and other statutory leave entitlements

10. Medical Benefits: Healthcare benefits and medical examination requirements

11. Termination: Notice periods and grounds for termination

12. Company Policies: Adherence to company policies and procedures

13. Governing Law: Malaysian law as governing law and jurisdiction

What sections are optional to include in a 12 Months Fixed Term Contract?

1. Probation Period: Include if there is an initial probation period within the fixed term

2. Confidentiality: Include for roles with access to sensitive information

3. Non-Competition: Include for senior positions or roles with access to trade secrets

4. Intellectual Property: Include for creative, technical, or R&D roles

5. Remote Work: Include if remote working arrangements are permitted

6. Commission Structure: Include for sales or commission-based roles

7. Performance Bonus: Include if performance bonuses are part of compensation

8. International Travel: Include if role requires international travel

9. Training Requirements: Include if specific training or certifications are required

What schedules should be included in a 12 Months Fixed Term Contract?

1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements

2. Schedule 2 - Compensation Details: Detailed breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Performance Metrics: Specific KPIs or performance evaluation criteria

5. Appendix A - Statutory Benefits: Summary of statutory benefits under Malaysian law

6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations if applicable

7. Appendix C - Employee Handbook Reference: Key sections of employee handbook incorporated by reference

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
































Clauses






























Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Hospitality

Energy

Agriculture

Media and Entertainment

Logistics

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Marketing

Sales

Research and Development

Customer Service

Administration

Production

Quality Assurance

Business Development

Project Management

Compliance

Relevant Roles

Project Manager

Software Developer

Research Assistant

Financial Analyst

Marketing Specialist

HR Coordinator

Operations Manager

Sales Representative

Technical Consultant

Administrative Assistant

Customer Service Representative

Content Writer

Data Analyst

Quality Control Specialist

Business Development Manager

Construction Site Supervisor

Laboratory Technician

Legal Assistant

Production Supervisor

Event Coordinator

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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