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Salaried Partner Agreement for Malaysia

Salaried Partner Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a professional services firm and a salaried partner. This document combines elements of both partnership and employment law, reflecting the hybrid nature of the salaried partner position. It addresses key aspects including appointment terms, remuneration structure, duties and obligations, profit sharing arrangements, and restrictive covenants, while ensuring compliance with Malaysian partnership laws, employment regulations, and relevant professional standards. The agreement is particularly important in Malaysian professional services firms where a tiered partnership structure is utilized.

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Salaried Partner Agreement

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What is a Salaried Partner Agreement?

The Salaried Partner Agreement is a crucial document used when a professional services firm wishes to appoint a senior professional to a partnership position while maintaining certain employment-like characteristics of the relationship. This agreement is particularly relevant in the Malaysian legal context, where it must comply with the Partnership Act 1961, Employment Act 1955, and various professional regulations. The document typically includes comprehensive provisions covering appointment terms, remuneration structures, profit sharing arrangements, duties and responsibilities, restrictive covenants, and termination provisions. It is especially important in firms transitioning professionals from employee to partner status, often as part of a career progression towards equity partnership. The agreement balances the need to give the salaried partner appropriate status and authority while protecting the firm's interests through carefully drafted restrictive covenants and confidentiality provisions.

What sections should be included in a Salaried Partner Agreement?

1. Parties: Identification of the partnership firm and the incoming salaried partner

2. Background: Context of the agreement, including the firm's structure and intention to appoint the salaried partner

3. Definitions: Key terms used throughout the agreement, including 'Partnership', 'Salaried Partner', 'Profit Share', etc.

4. Appointment and Status: Terms of appointment as salaried partner and clarification of status within the firm

5. Duration and Term: Period of appointment, including start date and any initial probationary period

6. Duties and Responsibilities: Detailed outline of the salaried partner's roles, obligations, and expected contributions

7. Remuneration and Benefits: Base salary, profit share arrangements, and benefits package details

8. Working Hours and Leave: Expected working arrangements and entitlement to various types of leave

9. Expenses and Resources: Provisions regarding business expenses, equipment, and resource allocation

10. Confidentiality: Obligations regarding firm and client confidential information

11. Intellectual Property: Ownership and rights regarding work product and intellectual property

12. Restrictions and Covenants: Non-compete, non-solicitation, and other restrictive covenants

13. Termination: Grounds and procedures for termination of the agreement

14. Post-Termination Obligations: Continuing obligations after termination of the agreement

15. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

What sections are optional to include in a Salaried Partner Agreement?

1. Professional Indemnity: Required for regulated professions like law or accounting, covering insurance and liability arrangements

2. International Assignments: Include if the firm has international offices and the salaried partner may work across jurisdictions

3. Client Development: Include if the salaried partner has specific business development responsibilities

4. Performance Metrics: Include if the firm uses specific KPIs or performance measurement systems

5. Equity Partnership Track: Include if there's a defined path to full equity partnership

6. Compliance with Religious Requirements: Include for firms operating under Shariah principles or other religious requirements

7. Secondment Provisions: Include if the salaried partner may be seconded to clients or other offices

8. Technology and Data Protection: Include detailed provisions if the firm handles sensitive digital assets or personal data

What schedules should be included in a Salaried Partner Agreement?

1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, profit share formula, and benefits

2. Schedule 2 - Performance Targets: Specific metrics and objectives for the salaried partner

3. Schedule 3 - Firm Policies: Key firm policies that form part of the agreement

4. Schedule 4 - Restricted Clients: List of clients covered by non-solicitation provisions

5. Schedule 5 - Equipment and Resources: List of firm resources provided to the salaried partner

6. Appendix A - Job Description: Detailed role profile and responsibilities

7. Appendix B - Benefits Summary: Comprehensive overview of all benefits and entitlements

8. Appendix C - Partnership Structure: Overview of the firm's partnership levels and governance

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 | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Cost

Free to use
Relevant legal definitions





































Clauses














































Relevant Industries

Legal Services

Accounting and Audit

Management Consulting

Architecture

Engineering

Medical Practice

Dental Practice

Financial Services

Tax Advisory

Business Advisory

Real Estate Services

Surveying Services

Insurance Services

Investment Management

Relevant Teams

Human Resources

Legal

Compliance

Partnership Board

Executive Committee

Operations

Finance

Professional Standards

Risk Management

Business Development

Professional Practice

Knowledge Management

Quality Assurance

Partner Services

Relevant Roles

Managing Partner

Senior Partner

Salaried Partner

Associate Partner

Junior Partner

Department Head

Practice Group Leader

Principal Consultant

Director

Senior Manager

Executive Director

Chief Operating Officer

Professional Practice Director

Regional Partner

Division Head

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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