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The On Hire Labour Agreement is designed for situations where businesses in Malaysia require flexible workforce solutions through labor hire arrangements. This agreement is typically used when a company (the host company) needs to engage workers through a labor hire company rather than employing them directly, often for project-based work, temporary staffing needs, or specialized assignments. The document ensures compliance with Malaysian employment laws, including the Employment Act 1955, Industrial Relations Act 1967, and relevant regulations governing labor hire arrangements. It covers crucial aspects such as employment terms, workplace rights, remuneration, statutory benefits, and clearly defines the responsibilities of all parties involved. This type of agreement is particularly valuable in industries with fluctuating workforce requirements or when companies need to quickly scale their operations while minimizing administrative burden and employment risks.

1. Parties: Identifies and provides details of the three main parties: the labor hire company, the worker, and the host employer

2. Background: Sets out the context of the agreement and the intention to create an on-hire labor arrangement

3. Definitions: Defines key terms used throughout the agreement including 'Assignment', 'Services', 'Work Location', etc.

4. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions

5. Nature of Relationship: Clarifies the employment relationship between parties and confirms the worker's employment status

6. Duties and Obligations: Details the responsibilities of each party, including the worker's duties and compliance requirements

7. Working Hours and Location: Specifies standard working hours, overtime arrangements, and work locations

8. Remuneration and Benefits: Details salary, payment terms, statutory contributions (EPF, SOCSO), and other benefits

9. Leave Entitlements: Outlines various types of leave including annual, sick, and public holidays as per Malaysian law

10. Confidentiality and Data Protection: Covers confidentiality obligations and handling of personal data under PDPA

11. Health and Safety: Specifies workplace safety requirements and compliance with OSHA regulations

12. Termination: Details circumstances and procedures for termination of the agreement

13. Governing Law: Confirms Malaysian law as governing law and jurisdiction for disputes