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Employee Promissory Note Template for Malaysia

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Key Requirements PROMPT example:

Employee Promissory Note

"I need an Employee Promissory Note for a training bond worth RM 25,000, to be repaid in monthly installments over 24 months if the employee leaves before January 2025, with an interest rate of 5% per annum in case of default."

Document background
The Employee Promissory Note is commonly used in Malaysian business practice to formalize financial obligations between employers and employees. This document type is particularly relevant when companies provide advance payments, training investments, or other financial benefits that require repayment under certain conditions. It serves as a legally binding instrument under Malaysian law, combining elements of employment contracts and financial obligations. The document typically specifies the amount owed, payment schedule, interest terms if applicable, and consequences of default, while ensuring compliance with relevant Malaysian legislation including the Employment Act 1955 and Bills of Exchange Act 1949.
Suggested Sections

1. Parties: Identification of the employee (promissor) and employer (promissee) with full legal names and details

2. Promise to Pay: Clear statement of the unconditional promise to pay, including the exact amount in words and numbers

3. Payment Terms: Specification of payment schedule, installment amounts, and due dates

4. Interest Rate: Statement of any applicable interest rate and calculation method

5. Events of Default: Definition of circumstances that trigger immediate full payment requirement

6. Enforcement: Terms regarding the enforcement of the note and legal remedies available

7. Governing Law: Specification of Malaysian law as the governing law

8. Attestation: Space for signatures, witness details, and date of execution

Optional Sections

1. Security: Details of any collateral or security provided, used when the note is secured

2. Early Payment: Terms for early repayment options, included when prepayment is allowed

3. Related Employment Terms: Reference to employment agreement or training bond terms, used when the note is linked to specific employment conditions

4. Acceleration Clause: Terms for accelerating the full payment, included when specific triggers for immediate payment are needed

5. Assignment: Terms regarding transferability of the note, included when the employer wants the right to assign

6. Force Majeure: Provisions for unforeseen circumstances affecting payment ability, used in long-term payment arrangements

Suggested Schedules

1. Payment Schedule: Detailed breakdown of payment installments, amounts, and due dates

2. Interest Calculation: Methodology and examples of interest calculations if applicable

3. Related Employment Benefits: Details of training costs, advance payments, or other amounts forming the basis of the promissory note

4. Authentication Documents: Copies of identification documents and employment records referenced in the main document

Authors

Alex Denne

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

Relevant legal definitions



















Clauses



















Relevant Industries

Banking and Financial Services

Manufacturing

Technology and IT

Healthcare

Education

Professional Services

Retail

Construction

Telecommunications

Aviation

Hospitality

Relevant Teams

Human Resources

Legal

Finance

Payroll

Compliance

Training and Development

Corporate Secretarial

Employee Relations

Relevant Roles

Human Resources Director

Legal Counsel

Finance Manager

HR Manager

Payroll Manager

Compliance Officer

Training and Development Manager

Talent Acquisition Manager

Company Secretary

Chief Financial Officer

HR Business Partner

General Counsel

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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