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Deferred Salary Agreement
"I need a Deferred Salary Agreement for a senior software developer in our Malaysian tech startup, where we'll defer 30% of their monthly salary from January 2025 to June 2025, with payment to be made in full in July 2025 plus 5% interest."
1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, including the employment relationship and reason for salary deferral
3. Definitions: Key terms used throughout the agreement, including 'Deferred Salary', 'Deferral Period', and 'Payment Date'
4. Term and Deferral Period: Duration of the agreement and specific periods during which salary will be deferred
5. Salary Deferral Arrangement: Details of the deferral mechanism, including amount or percentage of salary to be deferred
6. Payment Terms: Specifics of when and how deferred salary will be paid, including any conditions precedent
7. Tax and Statutory Contributions: Treatment of EPF, SOCSO, and income tax obligations related to the deferred salary
8. Employee's Continuing Obligations: Ongoing employment duties and responsibilities during the deferral period
9. Termination: Circumstances under which the agreement can be terminated and consequences of termination
10. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
1. Interest on Deferred Amounts: Optional provisions for interest payment on deferred amounts, if applicable
2. Security Arrangements: Security provisions to guarantee payment of deferred salary, particularly relevant for high-value deferrals
3. Performance Conditions: Any performance-related conditions attached to the payment of deferred salary
4. Change of Control: Provisions dealing with change in employer ownership or control
5. Confidentiality: Provisions for maintaining confidentiality of the arrangement, if required
6. Non-Competition and Non-Solicitation: Restrictive covenants, if appropriate given the employee's position
7. Force Majeure: Provisions for unforeseen circumstances affecting the employer's ability to pay
1. Schedule 1 - Payment Schedule: Detailed schedule of deferral amounts and payment dates
2. Schedule 2 - Calculation Method: Formula or method for calculating deferred amounts and any applicable interest
3. Schedule 3 - Employee's Current Employment Terms: Reference to or summary of relevant terms from the main employment agreement
4. Appendix A - Consent Form: Employee's written consent to salary deferral arrangement
5. Appendix B - Tax Treatment Summary: Summary of tax implications and treatment of deferred salary
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Professional Services
Construction
Technology
Start-ups
Manufacturing
Real Estate Development
Consulting
Project Management
Financial Services
Education
Healthcare
Human Resources
Legal
Finance
Payroll
Compliance
Executive Management
Corporate Secretarial
Operations
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Legal Counsel
Finance Manager
Project Manager
Department Head
Senior Executive
Managing Director
Operations Director
Company Secretary
Senior Manager
Technical Director
Development Manager
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