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Staffing Agency Contract for Malaysia

Staffing Agency Contract Template for Malaysia

A comprehensive agreement governed by Malaysian law that establishes the legal relationship between a staffing agency and a client company for the provision of temporary workforce solutions. The document encompasses key provisions required under Malaysian employment legislation, including the Employment Act 1955 and Private Employment Agencies Act 1981, while detailing service terms, payment structures, compliance requirements, and risk allocation. It addresses worker placement procedures, statutory obligations, confidentiality requirements, and dispute resolution mechanisms within the Malaysian legal framework.

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Staffing Agency Contract

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What is a Staffing Agency Contract?

This Staffing Agency Contract is essential for businesses operating in Malaysia that engage temporary workers through employment agencies. The document is specifically designed to comply with Malaysian employment laws, including the Employment Act 1955 and Private Employment Agencies Act 1981, while protecting both the staffing agency's and client company's interests. It should be used whenever a company plans to engage a staffing agency for temporary workforce solutions, covering crucial aspects such as worker placement procedures, payment terms, compliance requirements, and liability allocation. The contract addresses specific Malaysian regulatory requirements while providing a comprehensive framework for managing the three-way relationship between the staffing agency, client company, and temporary workers.

What sections should be included in a Staffing Agency Contract?

1. Parties: Identification of the staffing agency and the client company, including full legal names and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of staffing services to be provided by the agency

5. Agency Obligations: Core responsibilities of the staffing agency including recruitment, screening, and compliance with employment laws

6. Client Obligations: Responsibilities of the client company including workplace safety, supervision, and communication

7. Fees and Payment Terms: Pricing structure, payment terms, and invoicing procedures

8. Compliance with Laws: Commitment to comply with relevant Malaysian employment laws and regulations

9. Confidentiality: Protection of confidential information and trade secrets

10. Liability and Indemnification: Allocation of risks and responsibilities between parties

11. Term and Termination: Duration of the agreement and conditions for termination

12. General Provisions: Standard legal clauses including notices, amendments, and governing law

What sections are optional to include in a Staffing Agency Contract?

1. Non-Solicitation: Restrictions on hiring temporary staff directly, used when the agency wants to protect its workforce

2. Insurance Requirements: Specific insurance coverage requirements, included when additional risk management is needed

3. Performance Metrics: Service level agreements and KPIs, used for larger or more complex staffing arrangements

4. Data Protection: Detailed PDPA compliance procedures, included when significant personal data processing is involved

5. International Placement: Additional provisions for international worker placement, used when foreign workers are involved

6. Dispute Resolution: Specific dispute resolution procedures, included for high-value or complex arrangements

What schedules should be included in a Staffing Agency Contract?

1. Schedule A - Fee Structure: Detailed breakdown of all fees, markup percentages, and payment terms

2. Schedule B - Required Worker Qualifications: Specific qualifications, skills, and experience requirements for different positions

3. Schedule C - Service Level Requirements: Detailed performance metrics and service standards

4. Schedule D - Compliance Checklist: List of required compliance documents and certifications

5. Schedule E - Standard Operating Procedures: Detailed procedures for worker requisition, replacement, and management

6. Appendix 1 - Required Forms: Standard forms for worker requisition, timesheets, and performance evaluation

7. Appendix 2 - Insurance Certificates: Copies of required insurance policies and certificates

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

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions






























Clauses



























Relevant Industries

Manufacturing

Construction

Information Technology

Healthcare

Hospitality

Retail

Financial Services

Oil and Gas

Electronics

Agriculture

Logistics

Professional Services

Relevant Teams

Human Resources

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Facility Management

Project Management

Relevant Roles

Human Resources Director

Procurement Manager

Legal Counsel

Operations Manager

HR Business Partner

Talent Acquisition Manager

Compliance Officer

Finance Director

Contract Administrator

Risk Manager

Facility Manager

Project Manager

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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