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Fixed Term Agreement for Malaysia

Fixed Term Agreement Template for Malaysia

This document is a comprehensive Fixed Term Employment Agreement governed by Malaysian law, designed to establish a definite-period employment relationship between an employer and employee. It incorporates all necessary elements required under the Malaysian Employment Act 1955 and related employment legislation, including specific terms of employment, duration, compensation, benefits, and termination provisions. The agreement ensures compliance with local labor laws while protecting both employer and employee interests through clear definition of rights, obligations, and expectations throughout the fixed-term period.

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What is a Fixed Term Agreement?

This Fixed Term Agreement template is designed for use in Malaysia when establishing employment relationships for a specific, predetermined period. It is particularly suitable for project-based work, temporary positions, or roles with a clearly defined end date. The document complies with Malaysian employment law, including the Employment Act 1955, Industrial Relations Act 1967, and other relevant legislation. It covers essential aspects such as employment terms, compensation, statutory benefits, working hours, leave entitlements, and termination provisions. This agreement type is commonly used in various industries for roles ranging from project managers to specialized consultants, ensuring both parties have clear understanding of the temporary nature of the employment relationship and their respective rights and obligations.

What sections should be included in a Fixed Term Agreement?

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

2. Background: Context of the agreement and brief description of the employment arrangement

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

4. Appointment and Term: Details of the position, employment duration, and any renewal provisions

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Location(s) where work will be performed

7. Working Hours: Standard working hours, overtime provisions, and rest periods as per Malaysian law

8. Remuneration and Benefits: Salary, allowances, statutory contributions (EPF, SOCSO), and other benefits

9. Leave Entitlements: Annual, medical, and other types of leave as per Malaysian employment law

10. Confidentiality: Obligations regarding confidential information and trade secrets

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

12. Termination: Grounds for termination, notice periods, and procedures

13. Post-Termination Obligations: Return of company property and continuing obligations after employment ends

14. Governing Law: Specification of Malaysian law as governing law and jurisdiction

15. General Provisions: Standard contract clauses including entire agreement, amendments, and notices

What sections are optional to include in a Fixed Term Agreement?

1. Probation Period: Terms of probationary period if applicable to the fixed-term position

2. Performance Reviews: Process and frequency of performance evaluations if regular reviews are implemented

3. Bonus and Incentives: Details of any performance-based compensation or incentive schemes

4. Medical Benefits: Additional medical coverage beyond statutory requirements

5. Training and Development: Professional development opportunities and training requirements

6. Mobility Clause: Provisions regarding potential workplace relocations or travel requirements

7. Non-Competition: Post-employment restrictions on working with competitors

8. Non-Solicitation: Restrictions on soliciting employees or clients after employment ends

9. Remote Working: Provisions for remote work arrangements if applicable

What schedules should be included in a Fixed Term Agreement?

1. Schedule 1 - Job Description: Detailed breakdown of role, responsibilities, and key performance indicators

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Key company policies and procedures applicable to the employment

4. Schedule 4 - Confidential Information: Definition and examples of confidential information covered by the agreement

5. Schedule 5 - Benefits Package: Detailed description of all employee benefits and eligibility criteria

6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix B - IT and Communications Policy: Rules regarding use of company IT systems and communication tools

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions






























Clauses































Relevant Industries

Technology

Construction

Education

Healthcare

Manufacturing

Professional Services

Financial Services

Retail

Hospitality

Media and Entertainment

Energy

Telecommunications

Agriculture

Mining

Transportation

Research and Development

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Recruitment

Compensation and Benefits

Employee Relations

Compliance

Administrative Services

Relevant Roles

Project Manager

Contract Engineer

Interim Executive

Temporary Administrator

Seasonal Worker

Contract Teacher

Research Associate

Technical Consultant

Development Specialist

Fixed-term Supervisor

Contract Account Manager

Project Coordinator

Interim Director

Temporary Financial Analyst

Contract Marketing Specialist

Research Fellow

Visiting Professor

Contract Healthcare Professional

Project Architect

Interim Operations 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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