Employee Guarantor Form for Malaysia

Employee Guarantor Form Template for Malaysia

A legally binding document under Malaysian law that establishes a guarantee relationship where a third party (Guarantor) assumes responsibility for certain obligations of an employee towards their employer. The document outlines the scope of guaranteed obligations, enforcement mechanisms, and remedies available to the employer in case of default. It includes specific provisions compliant with Malaysian contract law, particularly the Contracts Act 1950, and incorporates necessary elements for enforceability under Malaysian employment regulations.

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What is a Employee Guarantor Form?

The Employee Guarantor Form is a crucial legal instrument used in Malaysian business contexts where employers seek additional security for employee obligations. This document is typically required for positions involving financial responsibilities, handling of valuable company assets, or key operational roles where the risk of loss to the company needs to be mitigated. The form creates a legally binding guarantee relationship under Malaysian law, where a third party (usually a family member or trusted individual) agrees to be responsible for specific obligations or potential liabilities of the employee. The document must comply with Malaysian contract law principles and typically includes detailed sections on the scope of guarantee, enforcement mechanisms, and remedies available to the employer.

What sections should be included in a Employee Guarantor Form?

1. Parties: Identifies all parties: the Employer (Creditor), the Employee (Principal Debtor), and the Guarantor

2. Background: Explains the context of the guarantee - the employment relationship and why a guarantee is required

3. Definitions: Defines key terms used throughout the document including 'Guaranteed Obligations', 'Employment Agreement', etc.

4. Guarantee and Indemnity: Core section detailing the guarantee obligations and indemnity provided by the guarantor

5. Scope of Guarantee: Specifies exactly what obligations are being guaranteed (e.g., employee's performance, financial obligations, etc.)

6. Duration of Guarantee: Specifies how long the guarantee remains in effect and any conditions for termination

7. Guarantor's Representations and Warranties: Statements confirming the guarantor's capacity and authority to provide the guarantee

8. Enforcement and Remedies: Details the employer's rights and remedies if the guarantee needs to be enforced

9. Notices: Specifies how and where formal communications between parties should be made

10. Governing Law and Jurisdiction: Confirms Malaysian law governs the agreement and specifies jurisdiction for disputes

What sections are optional to include in a Employee Guarantor Form?

1. Multiple Guarantors: Section needed when there is more than one guarantor, defining joint and several liability

2. Security: Required if the guarantor is providing specific assets as security for the guarantee

3. Guarantee Limit: Optional cap on the guarantor's liability, if applicable

4. Assignment: Include if either party needs the right to assign the guarantee to others

5. Change of Employment Terms: Include if guarantee should remain valid despite changes to employment terms

What schedules should be included in a Employee Guarantor Form?

1. Schedule 1 - Employment Agreement: Copy or key terms of the underlying employment agreement being guaranteed

2. Schedule 2 - Guaranteed Obligations: Detailed list of specific obligations being guaranteed

3. Schedule 3 - Guarantor's Assets: If relevant, list of assets provided as security for the guarantee

4. Appendix A - Form of Demand: Template for making formal demands under the guarantee

5. Appendix B - Guarantor's Certificate: Required declarations and confirmations from the guarantor

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Employment Form

Cost

Free to use
Relevant Industries

Financial Services

Banking

Retail

Manufacturing

Logistics

Technology

Professional Services

Construction

Trading

Hospitality

Relevant Teams

Legal

Human Resources

Finance

Operations

Treasury

Risk Management

Compliance

Administration

Relevant Roles

Cash Handler

Treasury Manager

Store Manager

Warehouse Supervisor

Financial Controller

Sales Manager

Procurement Officer

Account Executive

Operations Manager

Inventory Controller

Chief Cashier

Branch Manager

Finance Director

Chief Financial Officer

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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