The Basic Independent Contractor Agreement is essential for businesses operating in Malaysia that engage external service providers or freelancers. This document serves as a foundational legal framework for establishing non-employment working relationships, clearly distinguishing contractors from employees to comply with Malaysian labor laws. It addresses key aspects such as service scope, compensation, intellectual property rights, and confidentiality while incorporating necessary provisions from relevant Malaysian legislation including the Contracts Act 1950 and Income Tax Act 1967. The agreement is particularly relevant in today's dynamic business environment where companies increasingly rely on flexible workforce arrangements and specialized external expertise. It provides necessary legal protection for both parties while ensuring clarity in their professional relationship and compliance with local regulatory requirements.
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1. Parties: Identifies and provides full details of the contracting parties - the company/client and the independent contractor
2. Background: Briefly outlines the context of the agreement and the parties' intention to enter into an independent contractor relationship
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Scope of Services: Detailed description of the services to be provided by the contractor
5. Term and Termination: Specifies the duration of the agreement and conditions for termination by either party
6. Compensation and Payment Terms: Details the fees, payment schedule, and invoicing requirements
7. Independent Contractor Status: Explicitly establishes the relationship as independent contractor, not employment
8. Contractor's Obligations: Lists the contractor's key responsibilities and performance standards
9. Client's Obligations: Outlines the client's responsibilities and commitments
10. Intellectual Property Rights: Addresses ownership and rights to work product created during the engagement
11. Confidentiality: Protects confidential information shared during the engagement
12. Representations and Warranties: Basic warranties from both parties regarding capacity and authority to contract
13. Liability and Indemnification: Establishes liability limitations and indemnification obligations
14. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures
1. Non-Compete: Restricts contractor from competing with the client - include only if necessary for business protection and ensuring enforceability under Malaysian law
2. Insurance Requirements: Specifies required insurance coverage - include for high-risk services or when contractor needs professional liability insurance
3. Equipment and Resources: Details any equipment or resources provided by either party - include when specific tools or resources are central to service delivery
4. Performance Metrics: Establishes specific performance standards and KPIs - include for long-term or complex service arrangements
5. Dispute Resolution: Details specific dispute resolution procedures - include for high-value contracts or when alternative dispute resolution is preferred
6. Force Majeure: Addresses unforeseen circumstances preventing performance - include for long-term contracts or when service continuity is critical
7. Data Protection: Additional data handling and privacy requirements - include when personal data processing is involved
8. Subcontracting: Rules regarding use of subcontractors - include when subcontracting might be necessary
1. Schedule A - Service Description: Detailed specification of services, deliverables, and technical requirements
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule C - Service Levels: Specific performance standards, metrics, and quality requirements
4. Schedule D - Client Materials: List of any materials, information, or resources to be provided by the client
5. Appendix 1 - Contact Information: Key contact persons and their details for both parties
6. Appendix 2 - Required Qualifications: List of required certifications, qualifications, or credentials for the contractor
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Education
Healthcare
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Manufacturing
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Real Estate
Media and Entertainment
Marketing and Advertising
Information Technology
Engineering
Relevant Teams
Legal
Human Resources
Procurement
Operations
Finance
Compliance
Contract Administration
Project Management Office
Business Development
Risk Management
Relevant Roles
Legal Counsel
HR Manager
Procurement Manager
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