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This document is essential for Malaysian employers when hiring new employees who need to undergo a probationary period before permanent employment confirmation. The Probationary Employment Agreement serves as a legally binding document that clearly defines the temporary nature of the initial employment relationship while ensuring compliance with Malaysian employment laws, particularly the Employment Act 1955. It is used to establish clear expectations, performance standards, and terms of employment during the probationary period, typically ranging from 3 to 6 months. The agreement includes crucial details about compensation, benefits, working conditions, evaluation criteria, and the process for converting to permanent employment, while incorporating necessary protections for both employer and employee interests.

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

2. Background: Brief context of the employment offer and agreement to enter into probationary employment

3. Definitions: Key terms used throughout the agreement

4. Appointment and Probationary Period: Details of the position and duration of probation period

5. Duties and Responsibilities: Main job responsibilities and reporting structure

6. Working Hours and Location: Standard working hours, work location, and flexibility requirements

7. Remuneration and Benefits: Salary, allowances, and statutory benefits during probation

8. Leave Entitlements: Annual, medical, and other leave entitlements during probation

9. Performance Review: Evaluation criteria and review process during probation

10. Confidentiality: Non-disclosure obligations regarding company information

11. Termination: Notice periods and grounds for termination during probation

12. Confirmation of Employment: Conditions and process for confirmation as permanent employee

13. Governing Law: Specification of Malaysian law as governing law

14. Entire Agreement: Standard clause confirming this document represents the complete agreement