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Retroactive Employment Contract Template for Malaysia

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Retroactive Employment Contract

"I need a Retroactive Employment Contract for a software developer who has been working informally since January 2025, following Malaysian law, as we're now formalizing all employment relationships after a recent company audit."

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What is a Retroactive Employment Contract?

The Retroactive Employment Contract is utilized in situations where formal documentation of an existing employment relationship needs to be established after the fact. This commonly occurs during corporate restructuring, after mergers and acquisitions, when regularizing informal employment arrangements, or when updating employment terms to comply with current legislation. Under Malaysian law, particularly the Employment Act 1955 and Contracts Act 1950, this document serves to formally recognize and validate the historical employment relationship while ensuring all statutory obligations, including EPF and SOCSO contributions, are properly documented. The contract includes comprehensive details about historical employment terms, salary adjustments, accumulated benefits, and leaves, while also establishing current employment conditions. It's particularly crucial for ensuring legal compliance, protecting both employer and employee rights, and providing clear documentation for administrative and regulatory purposes.

What sections should be included in a Retroactive Employment Contract?

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

2. Background: Context of the employment relationship, including original start date and reason for retroactive documentation

3. Definitions: Key terms used throughout the agreement

4. Confirmation of Past Employment: Explicit acknowledgment of the previous employment period and its retroactive formalization

5. Term of Employment: Original start date, confirmation of continuous service, and current employment status

6. Position and Duties: Job title, role description, and responsibilities during the relevant period

7. Remuneration: Salary, benefits, and any historical changes in compensation

8. Working Hours: Standard working hours, overtime arrangements, and any historical variations

9. Leave Entitlements: Annual, medical, and other leave types with historical accounting

10. Statutory Contributions: EPF, SOCSO, and other mandatory contributions, including historical payments

11. Confidentiality: Protection of company information and trade secrets

12. Governing Law: Confirmation of Malaysian law as governing law

13. Entire Agreement: Confirmation that this agreement supersedes all previous arrangements while validating past employment

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

1. Probation Period: Include if the original employment had a probation period that needs to be documented

2. Commission Structure: Include for sales or commission-based roles

3. Bonus Arrangements: Include if performance bonuses or other incentive schemes were in place

4. Intellectual Property: Include if employee created IP during employment period

5. Non-Competition: Include if role involved access to sensitive business information

6. Overseas Employment Terms: Include if employee worked overseas during the period

7. Stock Options/Share Schemes: Include if employee participated in company share schemes

8. Special Allowances: Include if specific allowances were provided (housing, transport, etc.)

What schedules should be included in a Retroactive Employment Contract?

1. Schedule 1 - Employment History: Detailed timeline of employment including position changes, salary adjustments, and location changes

2. Schedule 2 - Historical Compensation: Complete record of salary, benefits, and other compensation from start date

3. Schedule 3 - Benefits Summary: Comprehensive list of benefits provided throughout employment period

4. Schedule 4 - Historical Leave Records: Record of all leave taken and accumulated

5. Schedule 5 - Statutory Contribution Records: Documentation of EPF, SOCSO, and other statutory payments

6. Appendix A - Job Description: Detailed job descriptions for all positions held

7. Appendix B - Company Policies: Relevant company policies applicable during employment period

8. Appendix C - Performance Reviews: Summary of performance evaluations and achievements

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

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Relevant Industries

Manufacturing

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Relevant Teams

Human Resources

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Middle Management

Corporate Secretarial

Risk Management

Payroll

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Relevant Roles

Chief Executive Officer

Managing Director

Department Head

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Operations Manager

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Marketing Manager

Administrative Officer

Production Supervisor

Research Scientist

Account Manager

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Customer Service Manager

Quality Assurance Manager

Regional Director

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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