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Managerial Agreement Template for Malaysia

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Key Requirements PROMPT example:

Managerial Agreement

"I need a Managerial Agreement for a new Operations Director in our manufacturing company, starting March 1, 2025, with strong non-compete clauses and specific provisions for overseas travel to our facilities in Singapore and Thailand."

Document background
The Managerial Agreement serves as a crucial legal document for companies operating in Malaysia who need to formalize employment relationships with their management-level employees. This agreement is particularly important given recent amendments to Malaysian employment law that have expanded the scope of the Employment Act 1955 to cover managerial positions. The document addresses key aspects of the employment relationship including appointment terms, duties, compensation, benefits, and performance expectations, while ensuring compliance with Malaysian employment regulations. It's essential for protecting both employer and employee interests, establishing clear guidelines for the management role, and addressing specific requirements such as confidentiality, intellectual property rights, and post-employment restrictions. The agreement is typically used when hiring new managers or promoting existing employees to management positions, and can be customized based on the management level and specific industry requirements.
Suggested Sections

1. Parties: Identification of the employer company and the manager, including complete legal names and addresses

2. Background: Brief context of the agreement and the purpose of hiring the manager

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Appointment and Term: Details of the position, effective date, and duration of employment (fixed-term or permanent)

5. Duties and Responsibilities: Comprehensive outline of the manager's role, authority levels, and key performance areas

6. Place of Work: Primary work location and any requirements for travel or remote work

7. Hours of Work: Expected working hours, flexibility requirements, and overtime provisions if applicable

8. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits including medical, insurance, and leave entitlements

9. Performance Review: Performance evaluation process, frequency, and impact on compensation

10. Confidentiality: Obligations regarding company confidential information and trade secrets

11. Intellectual Property: Ownership and rights to work products and innovations created during employment

12. Termination: Conditions and procedures for ending the employment relationship

13. Post-Termination Obligations: Non-compete, non-solicitation, and other post-employment restrictions

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

15. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Probation Period: Details of initial probationary period if applicable for new managers

2. Stock Options/Share Schemes: Include when offering equity-based compensation

3. International Travel: Required for positions involving frequent international travel or overseas assignments

4. Subsidiary Board Positions: Include when manager will serve on boards of subsidiary companies

5. Change of Control: Provisions for scenarios involving company ownership changes

6. Garden Leave: Include when there's a need to protect sensitive information during notice periods

7. Training and Development: Include when specific professional development requirements exist

8. Relocation Terms: Required when position involves relocation

9. Crisis Management: Include for senior positions with crisis management responsibilities

Suggested Schedules

1. Schedule 1: Job Description: Detailed description of roles, responsibilities, and reporting relationships

2. Schedule 2: Compensation Structure: Detailed breakdown of salary components, bonus calculations, and benefits

3. Schedule 3: Company Policies: Key company policies applicable to managerial staff

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

5. Schedule 5: Restricted Activities: Detailed list of prohibited activities during and after employment

6. Appendix A: Benefits Summary: Comprehensive list of benefits and eligibility criteria

7. Appendix B: Expense Policy: Guidelines for business expense claims and approvals

8. Appendix C: Reporting Structure: Organizational chart showing reporting relationships

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

Manufacturing

Financial Services

Technology

Retail

Healthcare

Education

Construction

Hospitality

Telecommunications

Professional Services

Energy

Real Estate

Transportation

Agriculture

Mining

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Supply Chain

Customer Service

Business Development

Administration

Facilities Management

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Manager

Regional Manager

Operations Manager

Sales Manager

Finance Manager

Human Resources Manager

Project Manager

Branch Manager

Production Manager

Marketing Manager

Technical Manager

Business Development Manager

Quality Assurance Manager

Supply Chain Manager

IT Manager

Research and Development Manager

Facility Manager

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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