The Workers Contract of Employment is a fundamental document required for establishing formal employment relationships in Malaysia. It is designed to comply with the Employment Act 1955 and other relevant Malaysian employment legislation, including the Minimum Wages Order 2022, Employees Provident Fund Act 1991, and Industrial Relations Act 1967. This contract should be used when hiring any employee in Malaysia, whether permanent or fixed-term, and must be executed before or at the commencement of employment. The document covers crucial aspects such as job scope, compensation, working hours, leave entitlements, statutory benefits, and termination procedures, while ensuring all mandatory requirements under Malaysian law are met. It serves as a vital reference point for both employers and employees throughout the employment relationship.
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1. Parties: Identification of the employer and employee with complete details as required by Malaysian law
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Appointment and Duration: Job title, employment status (permanent/fixed-term), and commencement date
5. Duties and Responsibilities: Main job duties, reporting structure, and work expectations
6. Place of Work: Primary workplace location and any mobility requirements
7. Working Hours: Standard working hours, rest periods, and overtime arrangements as per Employment Act
8. Remuneration: Salary, payment schedule, and method of payment
9. Benefits and Leave: Statutory leave entitlements, medical benefits, and other mandatory benefits
10. Statutory Contributions: EPF, SOCSO, and EIS contributions as required by Malaysian law
11. Termination: Notice periods, grounds for termination, and termination procedures
12. Confidentiality: Protection of company information and trade secrets
13. Governing Law: Confirmation of Malaysian law as governing law
14. Entire Agreement: Standard clause confirming the contract represents the complete agreement
1. Probation Period: Details of probationary period if applicable to new employees
2. Performance Review: Process for performance evaluation and salary review
3. Bonus and Commission: Include for roles with variable compensation components
4. Non-Competition: Restrictions on working with competitors (if appropriate for senior roles)
5. Intellectual Property: IP rights assignment for creative or technical roles
6. Remote Working: Include if flexible working arrangements are offered
7. Training and Development: Include if specific training requirements or opportunities are provided
8. Code of Conduct: Reference to company policies and expected behavior standards
9. Transfer Clause: Include if employee may be required to relocate or transfer between group companies
1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements
2. Schedule 2 - Compensation Details: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: List of applicable company policies and procedures
4. Schedule 4 - Leave Entitlements: Detailed breakdown of various leave types and entitlements
5. Appendix A - Statutory Benefits: Summary of statutory benefits and contributions
6. Appendix B - Performance Metrics: Specific KPIs or performance expectations if applicable
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Hospitality
Professional Services
Logistics
Agriculture
Mining
Telecommunications
Energy
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Information Technology
Sales
Marketing
Customer Service
Research and Development
Production
Quality Assurance
Procurement
Logistics
Facilities Management
Relevant Roles
Chief Executive Officer
Managing Director
General Manager
Department Head
Senior Manager
Manager
Executive
Administrator
Supervisor
Officer
Coordinator
Specialist
Analyst
Assistant
Technician
Entry Level Staff
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