The Guarantor Letter For New Employee is commonly used in Malaysian business practice as a risk mitigation tool when hiring new employees, particularly for positions involving financial responsibilities or access to valuable company resources. This document establishes a legally binding guarantee under Malaysian law, where a third party (typically a family member or established professional) assumes responsibility for certain obligations or potential liabilities of a new employee. The letter is structured in accordance with Malaysian contract law principles and typically includes details of all parties involved, the scope of the guarantee, financial obligations, and the duration of the guarantee period. It serves as an additional layer of security for employers while facilitating employment opportunities for individuals who might otherwise face challenges in securing certain positions.
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1. Date and Addresses: Full details of the employer company and the guarantor's addresses
2. Guarantor Details: Complete identification details of the guarantor including full name, NRIC number, and relationship to the employee
3. Employee Details: Full name and identification details of the employee being guaranteed
4. Employment Position Reference: Details of the position and role the employee is being hired for
5. Guarantee Declaration: Clear statement of the guarantee being provided and its scope
6. Financial Obligations: Specific details of the financial amounts or obligations being guaranteed
7. Duration of Guarantee: Period for which the guarantee remains valid
8. Guarantor's Undertaking: Specific obligations and commitments the guarantor is agreeing to
9. Signature Block: Space for guarantor's signature, witness details, and company representative signature
1. Multiple Guarantors Clause: Required when more than one guarantor is providing the guarantee, defining joint and several liability
2. Specific Performance Conditions: Used when guarantee is tied to specific performance metrics or conditions of the employee
3. Early Release Conditions: Include when there are specific conditions under which the guarantor can be released early from obligations
4. Guarantee Limit: Optional cap on the maximum amount the guarantor could be liable for
5. Governing Law: While Malaysian law is implied, this section can be added for extra clarity especially for international companies
1. Schedule A - Employment Terms: Summary of key employment terms and conditions relevant to the guarantee
2. Schedule B - Guaranteed Obligations: Detailed list of specific obligations or amounts being guaranteed
3. Appendix 1 - Required Documents: List of documents to be attached including guarantor's identification and proof of relationship
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Retail
Manufacturing
Technology
Healthcare
Education
Government and Public Sector
Telecommunications
Construction
Professional Services
Logistics and Transportation
Hospitality
Relevant Teams
Human Resources
Legal
Compliance
Risk Management
Finance
Operations
Administration
Corporate Secretariat
Talent Acquisition
Relevant Roles
Human Resources Manager
Legal Counsel
Compliance Officer
Recruitment Manager
HR Director
Company Secretary
Finance Manager
Risk Management Officer
HR Business Partner
Talent Acquisition Specialist
Employment Law Specialist
Operations Manager
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