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Labour Employment Contract for Malaysia

Labour Employment Contract Template for Malaysia

A comprehensive employment agreement governed by Malaysian law, specifically compliant with the Employment Act 1955 and related Malaysian employment legislation. This document establishes the formal employment relationship between an employer and employee, outlining all essential terms and conditions including job responsibilities, compensation, benefits, working hours, leave entitlements, and termination provisions. The contract incorporates mandatory requirements under Malaysian employment law while allowing for customization based on specific employment circumstances and industry requirements.

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Labour Employment Contract

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What is a Labour Employment Contract?

The Labour Employment Contract serves as the primary document establishing and governing the employment relationship between employers and employees in Malaysia. This contract type is essential for any formal employment arrangement and must comply with the Employment Act 1955 and other relevant Malaysian employment legislation. It should be used when hiring new employees or formalizing existing employment relationships, containing comprehensive details about employment terms, benefits, obligations, and rights of both parties. The document is particularly important in Malaysia where employment laws provide specific requirements for employment terms and conditions, making it crucial for both parties to have a clear, written agreement that meets all statutory requirements while protecting their respective interests.

What sections should be included in a Labour Employment Contract?

1. Parties: Identification of the employer and employee with complete details

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Duration: Position title, employment status (permanent/fixed-term), and commencement date

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

6. Place of Work: Primary workplace location and any mobility requirements

7. Hours of Work: Standard working hours, rest days, and overtime provisions

8. Remuneration: Basic salary, payment schedule, and method of payment

9. Benefits: Statutory and additional benefits including medical, insurance, and allowances

10. Leave Entitlements: Annual, sick, maternity/paternity, and other leave entitlements

11. Probation Period: Duration and terms of probationary period

12. Termination: Notice periods and grounds for termination

13. Confidentiality: Protection of company confidential information

14. Governing Law: Specification of Malaysian law as governing law

What sections are optional to include in a Labour Employment Contract?

1. Non-Competition: Restrictions on working with competitors, used for senior positions or roles with access to sensitive information

2. Non-Solicitation: Restrictions on soliciting employees or customers, typically for sales or management roles

3. Intellectual Property: IP rights assignment, necessary for creative or technical roles

4. Remote Work: Terms for working from home or remote locations, for flexible working arrangements

5. Commission Structure: Details of commission-based compensation, for sales roles

6. International Travel: Terms for international assignments or travel, for roles requiring overseas work

7. Training Requirements: Mandatory training and professional development commitments, for regulated professions or specialized roles

8. Share Options: Employee share option schemes, typically for executive positions

9. Bonus Scheme: Performance-based bonus structures, for management or sales roles

What schedules should be included in a Labour Employment Contract?

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

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria

5. Schedule 5 - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix B - IT Policy: Rules regarding use of company IT systems and equipment

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

Retail

Healthcare

Education

Construction

Professional Services

Hospitality

Telecommunications

Energy

Agriculture

Mining

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Administration

Business Development

Product Management

Quality Assurance

Supply Chain

Corporate Communications

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Project Manager

Software Engineer

Financial Analyst

Human Resources Executive

Sales Representative

Marketing Coordinator

Administrative Assistant

Operations Manager

Research Scientist

Legal Counsel

Account Manager

Product Manager

Customer Service Representative

Technical Support Specialist

Business Development Executive

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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