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12 Months Fixed Term Contract Template for Malaysia

A Malaysian fixed-term employment contract template designed to establish a defined-period employment relationship in compliance with the Employment Act 1955 and related Malaysian employment legislation. This document outlines the terms and conditions of employment for a specific duration of twelve months, including statutory requirements for benefits, working hours, leave entitlements, and termination provisions. The contract incorporates Malaysian-specific elements such as EPF contributions, SOCSO coverage, and EIS requirements, while maintaining flexibility to accommodate various industries and role types.

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What is a 12 Months Fixed Term Contract?

This document serves as a standardized template for creating 12 Months Fixed Term Contract employment agreements in Malaysia. It is specifically designed for situations where employers need to engage staff for a predetermined period, such as project-based work, seasonal requirements, or temporary replacements. The template ensures compliance with Malaysian employment laws, including the Employment Act 1955, Minimum Wages Order, and social security regulations. It includes all mandatory provisions required by Malaysian law while maintaining flexibility to be customized for different industries and position levels. The document is particularly useful for companies establishing fixed-term employment relationships where the duration and terms need to be clearly defined from the outset.

What sections should be included in a 12 Months Fixed Term Contract?

1. Parties: Identification of the employer and employee with complete details as required under Malaysian law

2. Background: Context of the employment relationship and basis for the fixed-term arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Duration of contract, position title, and employment classification

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

6. Place of Work: Primary workplace location and any flexibility arrangements

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

8. Remuneration: Salary, payment schedule, and statutory deductions (EPF, SOCSO, EIS, income tax)

9. Leave Entitlements: Annual, medical, and other statutory leave entitlements

10. Medical Benefits: Healthcare benefits and medical examination requirements

11. Termination: Notice periods and grounds for termination

12. Company Policies: Adherence to company policies and procedures

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

What sections are optional to include in a 12 Months Fixed Term Contract?

1. Probation Period: Include if there is an initial probation period within the fixed term

2. Confidentiality: Include for roles with access to sensitive information

3. Non-Competition: Include for senior positions or roles with access to trade secrets

4. Intellectual Property: Include for creative, technical, or R&D roles

5. Remote Work: Include if remote working arrangements are permitted

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

7. Performance Bonus: Include if performance bonuses are part of compensation

8. International Travel: Include if role requires international travel

9. Training Requirements: Include if specific training or certifications are required

What schedules should be included in a 12 Months Fixed Term Contract?

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

2. Schedule 2 - Compensation Details: Detailed breakdown of salary components and benefits

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

4. Schedule 4 - Performance Metrics: Specific KPIs or performance evaluation criteria

5. Appendix A - Statutory Benefits: Summary of statutory benefits under Malaysian law

6. Appendix B - Confidentiality Agreement: Detailed confidentiality obligations if applicable

7. Appendix C - Employee Handbook Reference: Key sections of employee handbook incorporated by reference

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Document Type

Employment Contract

Cost

Free to use

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