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Contract of Employment


Contract of Employment | Bestar
Contract of Employment | Bestar


Contract of Employment


An employment contract in Malaysia is a legally binding agreement between an employer and an employee that outlines the terms and conditions of their employment. It is important to have a well-drafted contract to ensure both parties understand their rights and responsibilities.


Here's a summary of key points about employment contracts in Malaysia:


  • Mandatory for most employees: A written contract is required by law for any employment lasting longer than one month, with some exceptions (e.g., employees earning above RM2,000 monthly).

  • Key elements: Typically, a contract will include details like job title, responsibilities, salary, working hours, leave entitlements, termination procedures, and confidentiality clauses.

  • Following the law: The contract should comply with the Employment Act 1955, which governs most employment-related matters in Malaysia.

  • Oral contracts: While legally valid, oral contracts are difficult to enforce in case of disputes. Having a written contract is highly recommended.


It's important to remember that this is just a general overview, and you should always consult with a qualified professional for specific legal advice regarding your employment contract.


Creating Employment Contract


Creating a fully functional employment contract for Malaysia is complex requiring professional expertise and tailoring to specific situations.


Essential elements for an employment contract in Malaysia:


  • Parties involved:

  • Employer's name, address, and registration details.

  • Employee's name, identification number (NRIC/passport), and address.

  • Commencement of employment: Start date of employment.

  • Type of employment:

  • Permanent, fixed-term, part-time, etc.

  • Specify duration if fixed-term.

  • Probation period (optional):

  • Duration of probationary period.

  • Terms for extending or terminating the probation.

  • Job title and description:

  • Clearly outline the employee's role and responsibilities.

  • Remuneration:

  • Basic salary amount and payment frequency.

  • Include details on allowances, bonuses, EPF contributions, and other benefits (if applicable).

  • Working hours and overtime:

  • Standard working hours per day and week.

  • Overtime pay rate (if applicable).

  • Leave entitlements:

  • Annual leave, sick leave, maternity leave, etc., as per Malaysian regulations and company policy.

  • Termination clause:

  • Notice period required for termination by either party.

  • Grounds for termination with or without notice.

  • Severance pay details (if applicable).

  • Confidentiality clause (optional):

  • Defines confidential information and employee's obligations regarding it.

  • Dispute resolution:

  • Preferred method for resolving disagreements (e.g., mediation, arbitration).

  • Signatures:

  • Both parties (employer and employee) must sign and date the agreement.


Additional considerations:


  • Ensure the contract complies with the Employment Act 1955 and other relevant Malaysian labor laws.

  • Use clear and concise language that both parties can understand.

  • Avoid including any unfair or discriminatory terms.


Resources for further information:


  • Ministry of Human Resources Malaysia provides a sample contract template for domestic workers (although not a substitute for a professional contract).

  • Lawyers or legal professionals: They can help you draft a customized and legally sound employment contract considering your specific circumstances.


Remember, this information is for general guidance only. Always consult with a qualified lawyer before finalizing and using an employment contract in Malaysia.


How Bestar can Help


How Bestar can assist with creating an employment contract in Malaysia:


Bestar is able to help you with:


  • Drafting a customized employment contract: We can tailor the contract to your specific needs and the requirements of Malaysian employment law. This includes incorporating details like job title, duties, salary, leave entitlements, and termination clauses.

  • Ensuring compliance with legal regulations: Bestar has the expertise to ensure the contract adheres to the Employment Act 1955 and other relevant Malaysian labor laws.

  • Providing guidance on best practices: They might offer advice on best practices for drafting and implementing employment contracts in Malaysia, considering factors like fairness, clarity, and enforceability.

  • Addressing specific concerns: If you have any particular concerns or questions regarding your employment contract, Bestar might be able to provide legal advice and guidance tailored to your situation.


To get the most accurate and up-to-date information on how Bestar can assist you with creating an employment contract in Malaysia:


  • Visit Bestar's website: Look for a dedicated page outlining our employment contract services or contact information.

  • Contact Bestar directly: Reach out to us via phone, email, or our website contact form to inquire about our services and how we can specifically help you with your employment contract needs.


By directly contacting Bestar, you can get personalized information regarding our services, pricing, and how we can address your specific requirements for creating an employment contract in Malaysia.




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