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Permanent Employment Agreement Template for Malaysia

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Key Requirements PROMPT example:

Permanent Employment Agreement

"I need a Permanent Employment Agreement for a Senior Software Engineer position in our Kuala Lumpur office, starting March 1, 2025, which should include strong IP protection clauses and provisions for hybrid working arrangements."

Document background
This Permanent Employment Agreement is designed for use in establishing formal, ongoing employment relationships in Malaysia. It serves as a crucial document for both employers and employees, ensuring compliance with Malaysian employment law, particularly the Employment Act 1955 and related legislation. The agreement should be used when hiring permanent employees in Malaysia, regardless of industry or position level. It includes mandatory provisions required by Malaysian law, such as working hours, leave entitlements, and statutory contributions, while also covering standard employment terms like confidentiality, intellectual property rights, and termination procedures. The document is structured to protect both parties' interests while maintaining flexibility for specific industry requirements and company policies.
Suggested Sections

1. Parties: Identifies the employer and employee with their full legal names and addresses

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

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Duration: Details of the position, effective date, and permanent nature of employment

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

6. Place of Work: Primary workplace location and potential for relocation or remote work

7. Hours of Work: Standard working hours, rest days, and overtime provisions as per Malaysian law

8. Remuneration and Benefits: Salary, mandatory benefits, bonuses, and other compensation elements

9. Leave Entitlements: Annual, medical, maternity/paternity, and other statutory leave provisions

10. Medical Benefits: Healthcare coverage and related benefits

11. Statutory Contributions: EPF, SOCSO, and other mandatory contributions

12. Confidentiality: Obligations regarding company confidential information

13. Intellectual Property: Ownership of work created during employment

14. Termination: Notice periods and grounds for termination

15. Company Policies: Adherence to company policies and procedures

16. Governing Law: Malaysian law as governing law and jurisdiction

17. Entire Agreement: Standard boilerplate about agreement superseding prior arrangements

Optional Sections

1. Probation Period: Include if the company wishes to implement an initial probation period despite permanent status

2. Non-Competition: Include for senior positions or roles with access to sensitive information

3. Non-Solicitation: Include for client-facing roles or senior positions

4. Share Options: Include if employee is eligible for company share schemes

5. International Travel: Include if role requires frequent international travel

6. Performance Bonus: Include if role has specific performance-based incentives

7. Training Obligations: Include if specific training requirements or bonds are applicable

8. Flexible Working: Include if hybrid or flexible working arrangements are offered

Suggested Schedules

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

2. Schedule 2 - Remuneration Package: Detailed breakdown of salary and benefits

3. Schedule 3 - Company Policies: List of applicable company policies

4. Schedule 4 - Confidential Information: Specific details of what constitutes confidential information

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

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

7. Appendix B - IT Policy: Company's IT usage and security policies

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

Technology

Manufacturing

Financial Services

Healthcare

Education

Retail

Professional Services

Construction

Hospitality

Energy

Telecommunications

Agriculture

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Transportation

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Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Administration

Engineering

Product Development

Quality Assurance

Supply Chain

Public Relations

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Manager

Executive

Officer

Administrator

Specialist

Analyst

Engineer

Accountant

Sales Representative

Customer Service Representative

Technical Support Specialist

Human Resources Officer

Marketing Executive

Research Analyst

Operations 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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