The Employee Undertaking Agreement serves as a crucial legal instrument in Malaysian employment relationships, typically executed at the commencement of employment or during significant role changes. This document is essential for protecting an organization's confidential information, intellectual property, and business interests while ensuring compliance with Malaysian employment laws, including the Employment Act 1955 and related legislation. It is particularly important in situations where employees have access to sensitive information, valuable intellectual property, or key client relationships. The agreement should be tailored to specific roles while maintaining enforceability under Malaysian law, considering both statutory requirements and common law principles.
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1. Parties: Identifies the employer and employee with their full legal names and addresses
2. Background: Sets out the context of employment and purpose of the undertaking
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Intellectual Property', and 'Company Property'
4. Duration and Term: Specifies when the undertaking comes into effect and its duration
5. Confidentiality Obligations: Details the employee's obligations regarding confidential information, including during and after employment
6. Intellectual Property Rights: Covers ownership and assignment of IP created during employment
7. Company Property: Addresses handling and return of company property and documents
8. Non-Solicitation: Prevents solicitation of company employees, clients, or customers
9. Acknowledgments: Employee's confirmation of understanding and agreement to terms
10. General Provisions: Standard clauses including governing law, severability, and entire agreement
11. Execution: Signature blocks and execution formalities
1. Non-Competition: Restrictions on working for competitors - only include if reasonable and necessary for business protection
2. Data Protection: Specific obligations regarding personal data handling - include if employee will handle sensitive data
3. Social Media Policy: Guidelines for social media use - include for customer-facing or senior roles
4. Moral Rights Waiver: Waiver of moral rights in creative works - include for creative/technical roles
5. Training Obligations: Commitment to complete specific training - include if specialized training is required
6. Post-Employment Cooperation: Obligation to assist with transitions/investigations after leaving - include for senior roles
1. Schedule 1 - Confidential Information: Detailed list of types of confidential information specific to the role
2. Schedule 2 - Intellectual Property: List of existing IP employee brings to role and/or specific IP obligations
3. Schedule 3 - Company Property: Inventory of company property provided to employee
4. Appendix A - Acknowledgment Form: Separate signature page for specific acknowledgments
5. Appendix B - Compliance Policies: Reference to relevant company policies the employee must comply with
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