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Short Employment Contract for Malaysia

Short Employment Contract Template for Malaysia

A concise employment agreement designed for use in Malaysia, compliant with the Employment Act 1955 and related Malaysian employment legislation. This document establishes the fundamental terms of employment between an employer and employee, including essential provisions for appointment, duties, compensation, working hours, leave entitlements, and termination conditions. The contract is structured to meet all statutory requirements while maintaining brevity and clarity, making it particularly suitable for standard employment relationships in Malaysian businesses.

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What is a Short Employment Contract?

This Short Employment Contract template is designed for use in Malaysian business contexts where a straightforward yet comprehensive employment agreement is needed. It incorporates all essential elements required by the Employment Act 1955 and other relevant Malaysian legislation while maintaining a concise format. The document is particularly useful for small to medium-sized enterprises, standard employment relationships, and positions where complex employment terms are unnecessary. This contract type is commonly used for initial employment agreements, fixed-term positions, or when converting temporary staff to permanent status. The document ensures compliance with Malaysian employment law while remaining accessible and easily understandable for both employers and employees.

What sections should be included in a Short Employment Contract?

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Job title, employment status (permanent/fixed-term), and commencement date

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

6. Working Hours: Standard working hours, rest days as per Employment Act requirements

7. Remuneration and Benefits: Salary, mandatory contributions (EPF, SOCSO), and basic benefits

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

9. Termination: Notice periods and grounds for termination

10. Confidentiality: Basic confidentiality obligations

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

12. Execution: Signature blocks and witness provisions

What sections are optional to include in a Short Employment Contract?

1. Probation Period: Include when the employment is subject to an initial probation period

2. Non-Competition: Include for senior positions or when dealing with sensitive business information

3. Intellectual Property: Include when employee may create IP during employment

4. Remote Work: Include when allowing work from home or remote working arrangements

5. Commission Structure: Include for sales positions or performance-based roles

6. Training Requirements: Include when specific training or qualifications are required

7. Transfer Clause: Include when employee may be required to relocate or transfer between locations

What schedules should be included in a Short Employment Contract?

1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Reference to key company policies that form part of the employment terms

4. Appendix A - Statutory Benefits: Summary of mandatory benefits under Malaysian law

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

Employment Contract

Cost

Free to use
Relevant legal definitions




















Clauses






















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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