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Employment Agreement Malaysia Sample

An employment agreement is an essential legal document that outlines the terms and conditions of employment between an employer and an employee. While the terms of an employment agreement may vary depending on the job position, industry, and location, there are specific provisions that must be included in an employment agreement in Malaysia.

In Malaysia, a valid employment agreement must comply with the Employment Act 1955, which governs the rights and responsibilities of employers and employees in the country. An employment agreement must be in writing, signed by both parties, and must cover the following essential terms:

1. Job Title and Description

The agreement must clearly state the job title and description of the employee`s role. This includes the duties and responsibilities of the employee as well as the reporting structure.

2. Remuneration and Benefits

The agreement must outline the employee`s salary, allowances, bonuses, and any other benefits such as medical coverage, retirement plans, and leave entitlement.

3. Working Hours

The agreement must specify the employee`s working hours, including the number of days and hours worked per week. It should also include provisions on overtime pay, rest periods, and public holidays.

4. Termination and Resignation

The agreement must outline the process for termination of employment by either party, including the notice period and any compensation payable. It should also include provisions on the employee`s right to resign and the notice required.

5. Confidentiality and Intellectual Property

The agreement must contain provisions on confidentiality and intellectual property, including non-disclosure clauses and restrictions on the use of company information.

6. Dispute Resolution

The agreement must outline the process for resolving disputes between the employer and the employee, including mediation, arbitration, or legal action.

To ensure that an employment agreement meets all legal requirements in Malaysia, it is advisable to seek legal advice when drafting or reviewing the agreement.

Employment Agreement Malaysia Sample

Below is a sample employment agreement that covers the essential terms outlined above. It is important to note that this sample is for informational purposes only and should not be used as a template without seeking legal advice:

Employment Agreement

This agreement is made on (Date) between (Employer Name), a company registered in Malaysia, and (Employee Name) as the employee.

Position and Description

The employee`s position shall be (Job Title), and the job description will be attached to this agreement as Schedule A.

Remuneration and Benefits

The employee`s remuneration shall be (Salary Amount) per month, payable on the last day of each month. The employee shall also be entitled to the following benefits:

– Medical coverage

– Retirement plan

– Annual leave of (Number of Days)

– Public holidays as per the Employment Act 1955

Working Hours

The employee`s working hours shall be (Number of Hours) per day, from (Start Time) to (End Time), from (Days) to (Days), with (Number of Rest Days) rest days per week. The employee shall be entitled to overtime pay for working beyond the normal working hours.

Termination and Resignation

Either party may terminate this agreement by giving (Notice Period) notice in writing. The employer may terminate this agreement without notice for gross misconduct or repeated breaches of company policies. Upon termination, the employee shall be entitled to receive any outstanding salary and benefits up to the date of termination.

The employee may resign by giving (Notice Period) notice in writing. The employee shall not be entitled to any compensation for early termination of the agreement.

Confidentiality and Intellectual Property

The employee shall maintain the confidentiality of all company information and trade secrets and shall not disclose such information to any third party without the employer`s prior written consent. The employee shall also assign all intellectual property rights to the employer for any work or inventions created within the scope of employment.

Dispute Resolution

Any dispute arising out of or in connection with this agreement shall be resolved in accordance with the laws of Malaysia and through arbitration under the rules of the Malaysian Arbitration Centre.

Signed for and on behalf of the employer: (Employer Signature)

Signed by the employee: (Employee Signature)

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