Employee Transfer Agreement for Malaysia

Employee Transfer Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that facilitates the transfer of employees from one employer to another while maintaining continuity of employment. The document ensures compliance with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967, while protecting both employer and employee interests. It addresses crucial aspects such as preservation of employment terms, transfer of benefits, continuity of service, and handling of employee data, all within the Malaysian legal framework.

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What is a Employee Transfer Agreement?

The Employee Transfer Agreement is a crucial document used in Malaysia when employees need to be transferred from one employer to another, typically during corporate restructuring, mergers, acquisitions, or internal reorganizations. This agreement ensures compliance with Malaysian employment laws while protecting both employer and employee interests. It addresses key aspects such as the transfer of employment contracts, preservation of terms and conditions, continuity of service, benefits maintenance, and data protection requirements under Malaysian law. The document is particularly important as it helps prevent constructive dismissal claims and ensures smooth transition of employment relationships while maintaining compliance with the Employment Act 1955 and other relevant Malaysian legislation.

What sections should be included in a Employee Transfer Agreement?

1. Parties: Identification of the current employer (transferor) and new employer (transferee)

2. Background: Context of the transfer, including the business reason and general intent of the agreement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Transfer Date', 'Transferring Employees', 'Employment Benefits', etc.

4. Transfer of Employment: Core provisions regarding the transfer of employment relationships from transferor to transferee

5. Continuity of Employment: Provisions ensuring recognition of continuous service and preservation of existing terms and conditions

6. Employee Benefits and Entitlements: Details of how existing benefits, leave entitlements, and other rights will be maintained or compensated

7. Transfer Process: Step-by-step process of the transfer, including timing, notifications, and practical implementation

8. Employees' Data: Provisions regarding the transfer of employee records and personal data in compliance with PDPA

9. Representations and Warranties: Warranties from both parties regarding employment matters, compliance with laws, and disclosed information

10. Indemnities: Mutual indemnities covering pre and post-transfer liabilities

11. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

What sections are optional to include in a Employee Transfer Agreement?

1. Union Recognition and Consultation: Required when transferring employees are members of a trade union, addressing union recognition and consultation requirements

2. Intellectual Property Rights: Needed when transferring employees have created or manage intellectual property

3. Non-Competition and Confidentiality: Include when transferring employees have access to sensitive information or key client relationships

4. Pension Arrangements: Required when dealing with transfer of private pension schemes or additional retirement benefits

5. Property and Equipment: Include when dealing with transfer of employee-used assets or equipment

6. Training and Integration: Optional section detailing any specific training or integration programs for transferred employees

What schedules should be included in a Employee Transfer Agreement?

1. Schedule 1 - List of Transferring Employees: Detailed list of employees being transferred, including their current positions and key employment terms

2. Schedule 2 - Employment Terms and Conditions: Detailed terms and conditions of employment being transferred, including salary structures and benefits

3. Schedule 3 - Employee Benefits: Comprehensive list of current benefits and how they will be maintained or replaced

4. Schedule 4 - Outstanding Claims and Liabilities: List of any outstanding employment-related claims or liabilities

5. Schedule 5 - Transfer Timeline: Detailed timeline of the transfer process, including key dates and milestones

6. Appendix A - Employee Communication Template: Template for formal communication to employees regarding the transfer

7. Appendix B - Consent Forms: Template forms for employee consent to transfer of employment and personal data

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

Transfer Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Manufacturing

Financial Services

Technology

Retail

Healthcare

Professional Services

Construction

Education

Telecommunications

Logistics

Energy

Hospitality

Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Employee Relations

Operations

Executive Leadership

Payroll

Benefits Administration

Relevant Roles

Human Resources Director

Legal Counsel

HR Manager

Employment Lawyer

Compliance Officer

HR Business Partner

Chief Human Resources Officer

Industrial Relations Manager

Talent Acquisition Manager

Benefits Manager

Corporate Lawyer

Chief Legal Officer

Operations Director

Chief Executive 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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