EOR Master Service Agreement (MSA)

EOR Master Service Agreement (MSA)

Here is a comprehensive draft for an Employer of Record (EOR) Master Service Agreement (MSA) tailored for Malaysia.

This draft is structured to protect the interests of the Service Provider while clearly defining the scope, compliance parameters under Malaysian labor laws (such as the Employment Act 1955), and payment terms.

MASTER SERVICE AGREEMENT (EMPLOYER OF RECORD SERVICES)

This Master Service Agreement (the "Agreement") is entered into and made effective as of [Effective Date] (the "Effective Date"), by and between:

BESTAR CONSULTING SDN. BHD. (Company No. [Insert No.]), a company incorporated under the laws of Malaysia, with its registered address at [12A-10 Plaza Permata, 6 Jalan Kampar, Sentul Selatan, 50400 Kuala Lumpur, Malaysia (hereinafter referred to as the "Service Provider" or "Bestar"); and

[CLIENT COMPANY NAME] (Company No. / Registration No. [Insert No.]), a company incorporated under the laws of [Country], with its registered address at [Insert Address] (hereinafter referred to as the "Client").

Bestar and the Client shall collectively be referred to as the "Parties" and individually as a "Party."

RECITALS

WHEREAS, Bestar provides professional Employer of Record (EOR), payroll, and corporate secretarial services in Malaysia; WHEREAS, the Client desires to engage Bestar to act as the Employer of Record for certain personnel engaged by the Client to perform services in Malaysia; and WHEREAS, Bestar agrees to provide such EOR services subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, the Parties agree as follows:

1. DEFINITIONS & STRUCTURE

• "Assigned Employee" means any individual recruited or selected by the Client and employed by Bestar for the sole purpose of performing services for the Client under a relevant Statement of Work (SOW).

  
  

• "Employment Contract" means the employment agreement entered into between Bestar and the Assigned Employee, compliant with the Malaysian Employment Act 1955 (and any subsequent amendments).

  
  

• "Service Fees" means the monthly management fees charged by Bestar for managing each Assigned Employee, as specified in the SOW.

  
  

• "Employment Costs" means the total gross salary, allowances, bonuses, statutory contributions (including but not limited to EPF, SOCSO, EIS, and HRD Corp levy), medical insurance, and any other employment-related expenses or severance pay payable to or on behalf of the Assigned Employee.

  
  

• "Statement of Work" or "SOW" means the supplementary document executed by both Parties under this Agreement detailing the specific terms of engagement for an Assigned Employee (e.g., salary, role, specific allowances).

2. SCOPE OF SERVICES (EOR ROLES)

2.1 Bestar’s Obligations

Bestar shall act as the legal Employer of Record for the Assigned Employees in Malaysia and shall be responsible for:

1. Executing local Employment Contracts with the Assigned Employees based on the parameters agreed upon with the Client.

   
   

2. Processing and administering monthly payroll, generating payslips, and ensuring compliance with local tax regulations.

   
   

3. Remitting all required statutory contributions to the relevant Malaysian authorities, including the Employees Provident Fund (EPF), Social Security Organisation (SOCSO), Employment Insurance System (EIS), and the Inland Revenue Board (LHDN) for Monthly Tax Deductions (PCB).

   
   

4. Assisting, where agreed and applicable, with the application for relevant employment passes or work permits for expatriate talent.

2.2 Client’s Obligations

The Client shall retain day-to-day operational control and supervision over the Assigned Employees. The Client is solely responsible for:

1. Directing the daily tasks, work schedules, output, and professional conduct of the Assigned Employees.

   
   

2. Providing a safe working environment compliant with the Malaysian Occupational Safety and Health Act (OSHA).

   
   

3. Ensuring that the Assigned Employees' day-to-day operations do not violate any local laws or regulations.

3. FEES, INVOICING, AND PAYMENTS

3.1 Fee Structure

The Client agrees to pay Bestar the following amounts monthly for each Assigned Employee:

• The actual Employment Costs incurred; plus

  
  

• The agreed Service Fee (as set out in the SOW).

3.2 Invoice Schedule & Currency

All invoices shall be issued in Ringgit Malaysia (MYR) unless otherwise specified in an SOW.

1. Advance Invoice: Bestar shall issue an estimated invoice for the upcoming month's Employment Costs and Service Fees on or before the [e.g., 15th] day of the preceding month.

   
   

2. Payment Due Date: The Client must clear the invoice within [e.g., 5 or 7] business days of receipt, ensuring funds clear into Bestar's account no later than the [e.g., 22nd] day of the month, prior to local payroll processing deadlines.

   
   

3. Adjustments: Any variances (e.g., overtime, expense claims, unpaid leave) will be reconciled and adjusted in the subsequent month's invoice.

Important Note on Delays: Timely payment is critical. If the Client fails to remit funds by the due date, Bestar reserves the right to suspend services, withhold payroll distribution, or terminate the respective Employment Contract, with any resulting legal or statutory penalties being borne entirely by the Client.

3.3 Security Deposit

Before the onboarding of any Assigned Employee, the Client shall pay Bestar a refundable Security Deposit equivalent to 2 months of the total estimated Employment Costs and Service Fees. This deposit will be held as security for the performance of the Client’s payment obligations and will be refunded upon termination of this Agreement, net of any outstanding amounts owed.

4. TERM AND TERMINATION

4.1 Agreement Term

This Agreement shall commence on the Effective Date and remain in force for an initial period of twelve (12) months, automatically renewing for successive twelve-month periods unless terminated by either Party in accordance with Section 4.2.

4.2 Termination for Convenience

Either Party may terminate this Agreement or an individual SOW by giving at least [e.g., 30 / 60 / 90] days' written notice to the other Party, provided that such notice aligns with the notice period required under the Assigned Employee's local Employment Contract.

4.3 Termination for Cause

Either Party may terminate this Agreement immediately upon written notice if:

1. The other Party commits a material breach of this Agreement and fails to remedy it within fourteen (14) days of receiving written notice of the breach.

   
   

2. The other Party becomes insolvent, enters into liquidation, or makes an assignment for the benefit of creditors.

4.4 End of Employment Liabilities

In the event of termination of an Assigned Employee's contract (whether initiated by the Client or due to the end of an SOW), the Client shall indemnify and bear all associated statutory costs, including pay-in-lieu of notice, termination benefits under the Employment Act 1955, or encashment of unutilized annual leave.

5. INTELLECTUAL PROPERTY & INDEMNIFICATION

5.1 Intellectual Property (IP) Rights

Bestar acknowledges that all intellectual property, work product, inventions, or data created by the Assigned Employee during the course of their engagement with the Client belongs exclusively to the Client. Bestar hereby assigns, and will ensure that the Assigned Employee assigns in their Employment Contract, all rights, titles, and interests in such IP directly to the Client.

5.2 Indemnification

The Client agrees to defend, indemnify, and hold harmless Bestar, its directors, and employees against any claims, losses, liabilities, legal costs, or fines resulting from:

1. The operational directives, actions, or omissions of the Assigned Employee.

   
   

2. Any claims of wrongful dismissal, discrimination, or labor disputes raised by an Assigned Employee, provided Bestar followed the explicit operational instructions of the Client and remained in compliance with local legal advice.

   
   

3. Any breach of workplace safety regulations at the premises where the Assigned Employee performs their duties.

6. CONFIDENTIALITY & DATA PROTECTION

6.1 Confidential Information

Each Party agrees to hold in confidence all confidential business, financial, or proprietary information disclosed by the other Party during the term of this Agreement and shall not disclose it to any third party without prior written consent.

6.2 Personal Data Protection Act (PDPA) Compliance

Both Parties acknowledge that they will handle personal data relating to Assigned Employees. The Parties agree to comply strictly with the provisions of the Malaysian Personal Data Protection Act 2010 (PDPA). Bestar acts as a data processor regarding employee data managed on behalf of the Client, and the Client agrees to obtain all necessary consents from candidates prior to passing data to Bestar for onboarding.

7. GOVERNING LAW AND JURISDICTION

This Agreement and any dispute or claim arising out of it shall be governed by and construed in accordance with the laws of Malaysia. The Parties irrevocably agree that the courts of Malaysia shall have exclusive jurisdiction to settle any dispute or claim arising under this Agreement.

8. MISCELLANEOUS

• Entire Agreement: This Agreement, along with any executed SOWs, constitutes the entire understanding between the Parties regarding EOR services and supersedes all prior agreements or arrangements.

  
  

• Amendments: No variation or modification of this Agreement shall be valid unless made in writing and signed by authorized representatives of both Parties.

  
  

• Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

IN WITNESS WHEREOF, the Parties hereto have executed this Master Service Agreement as of the date first written above.

For and on behalf of

BESTAR CONSULTING SDN. BHD.

Name: _____________________

Title: _____________________

Date: _____________________

For and on behalf of

[CLIENT COMPANY NAME]

Name: _____________________

Title: _____________________

Date: _____________________

APPENDIX A: TEMPLATE STATEMENT OF WORK (SOW)

This SOW is issued pursuant to the Master Service Agreement dated [Date] between Bestar Consulting Sdn. Bhd. and [Client Name].

Item	Details
Assigned Employee Name	[Employee Name]
Job Title / Role	[e.g., Senior Software Engineer]
Target Start Date	[Date]
Gross Monthly Salary	MYR [Amount]
Allowances / Fixed Bonuses	[e.g., Transport Allowance MYR 500 / Phone MYR 150]
Statutory Contributions	Employer EPF, SOCSO, EIS, HRD Corp Levy (As per Malaysian Statutory Rates)
Bestar Monthly Service Fee	[e.g., MYR 500 / USD 150 per month OR X% of Gross Salary]
Required Security Deposit	MYR [Amount, typically 1-2 months of total payroll costs]
Notice Period	[e.g., 30 days written notice by either party]

A Few Quick Pointers:

1. Termination Rules: Malaysia has strict labor protections under the Employment Act 1955. If a client wants to terminate an employee without cause, it can lead to costly "unfair dismissal" claims at the Industrial Court. Section 5.2 (Indemnification) is highly critical here to ensure that if a client insists on firing someone without valid grounds, the client absorbs the legal liabilities, not Bestar.

   
   

2. Currency Fluctuations: If the client requests billing in USD, ensure you add a buffer clause or adjust the exchange rate calculation monthly so Bestar isn't caught short when paying the statutory boards in MYR.

Would you like to customize any specific sections, such as adding a specific clause for the recruitment/onboarding phase or setting an exact penalty rate for late payments?

Elevate Your Enterprise: How Bestar Malaysia Can Help Scale Your Business In 2026

Expanding into or managing a business in Malaysia offers massive growth opportunities, but navigating the regulatory landscape can feel like a full-time job. Between strict statutory timelines, evolving tax brackets, and local compliance demands, you need a high-velocity strategic partner to handle the heavy lifting.

As a leading multinational professional services firm, Bestar Malaysia stands at the intersection of traditional professional excellence and future-ready innovation. Operating out of Kuala Lumpur, Bestar serves as your single point of contact, eliminating cross-border friction for high-growth startups, SMEs, and multinational corporations (MNCs).

1. Corporate Secretarial & Seamless Market Entry

Setting up a Sendirian Berhad (Sdn Bhd) or a foreign subsidiary requires meticulous coordination with the Companies Commission of Malaysia (SSM). Missing a compliance window or filing incorrect corporate governance paperwork can result in hefty fines.

How Bestar Helps:

• End-to-End Company Incorporation: We manage your entire setup, from name reservation to drafting corporate constitutions.

  
  

• Proactive Corporate Secretarial Services: Led by industry compliance experts, our corporate secretarial department keeps your business fully compliant with the Malaysian Companies Act 2016, managing statutory books, annual returns, and Anti-Money Laundering (AML) risk frameworks.

  
  

• Licensing & Special Permits: We take the guesswork out of getting specialized industry and wholesale, retail, and trade (WRT) licenses.

2. Global Mobility, HR, and EOR Services

Securing the right talent and navigating local employment laws can stall your expansion if not handled correctly.

How Bestar Helps:

• Immigration & Visa Management: Streamlined processing for Employment Passes (EP) and professional visit visas so you can place global talent exactly where you need them.

  
  

• Employer of Record (EOR) & Payroll Outsourcing: If you want to hire local Malaysian staff without setting up a legal entity right away, Bestar can act as your legal EOR. We manage monthly payroll distribution, employee onboarding, and HR consulting.

  
  

• Statutory Compliance Mastery: We handle automated calculations and timely distribution of all local statutory contributions, including the Employees Provident Fund (EPF), Social Security Organisation (SOCSO), Employment Insurance System (EIS), and the Human Resources Development Corporation (HRD Corp) levy.

3. Financial Advisory, Bookkeeping, & Tax Optimization

In a fast-moving economic hub, real-time financial clarity is the difference between surviving and scaling.

[ Traditional Accounting ]  ➔  Slow, backward-looking data.
[ Bestar Digital Accounting ]  ➔  Real-time visibility, automated tax readiness.

How Bestar Helps:

• Accurate Bookkeeping & Compilation: Our dedicated accountants ensure your financial records are meticulously maintained and fully compliant with Malaysian Financial Reporting Standards (MFRS).

  
  

• Tax Advisory & LHDN Liaison: We proactively manage your Monthly Tax Deductions (PCB) and corporate tax positioning to avoid double taxation while maximizing local tax incentives.

  
  

• Audit & Assurance Support: From statutory audits to specialized IT audits and risk management assessments, we prep your books to face regulatory reviews with absolute confidence.

4. Mergers, Acquisitions (M&A), and Strategic Valuation

For companies looking to scale through corporate acquisitions, divestitures, or joint ventures, executing due diligence requires deep localized financial intelligence.

How Bestar Helps:

• Corporate Valuation & Due Diligence: We uncover the hard facts behind target company assets, legal standing, and liabilities.

  
  

• M&A Advisory & Brokerage: Backed by specialized transactional experience, we help negotiate, structure, and draft airtight advisory agreements that safeguard your investment capital and future commercial interests.

Why Choose Bestar as Your Regional Hub?

Feature	Fragmented Agencies	The Bestar Advantage
Point of Contact	Multiple disconnected vendors	Single, unified regional contact
Regional Reach	Limited to local domestic market	Direct coverage across SG, MY, HK, & KR
Reporting Standard	Disjointed financial data	Standardized, cross-border reporting
Compliance Management	Reactive (fixing errors late)	Proactive AML, SSM, and LHDN monitoring

The Power of an Integrated Network: Managing separate agencies across different countries often creates operational blind spots. Bestar aligns your financial reporting cycles and tax strategies seamlessly across your Singapore, Malaysia, and Hong Kong entities, simplifying regional audits and optimizing your cross-border transfer pricing.

Ready to Accelerate Your Growth in Malaysia?

Stop managing administrative friction and start focusing on your core business strategy. Let our dedicated team handle your entity setup, statutory compliance, and payroll roadmap.

• Office Address: 12A-10 Plaza Permata, 6 Jalan Kampar, Sentul Selatan, 50400 Kuala Lumpur, Malaysia

• Central Inquiry Email: admin@bestar-asia.com

• Sales Hotline (WhatsApp): +65 88364489

Want to schedule a consultation with our local corporate advisory team?