The Employment Contract Policy is a fundamental document that establishes the framework for employment relationships within organizations operating in Malaysia. This document is essential for ensuring compliance with Malaysian employment laws, particularly the Employment Act 1955, Industrial Relations Act 1967, and other relevant legislation. It should be implemented when establishing new employment relationships or updating existing employment policies to reflect current legal requirements. The policy covers crucial aspects such as working hours, leave entitlements, compensation, benefits, disciplinary procedures, and termination processes. It serves as a primary reference point for both employers and employees, providing clarity on rights, obligations, and expectations within the employment relationship. Regular reviews and updates are necessary to maintain compliance with evolving Malaysian employment regulations and industry standards.
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1. Introduction: Purpose and scope of the employment policy, including its application and implementation
2. Definitions: Key terms used throughout the policy document
3. Employment Categories: Classifications of employees (permanent, temporary, contract, part-time, etc.)
4. Recruitment and Selection: Standard procedures for hiring new employees
5. Working Hours and Attendance: Standard working hours, overtime policies, and attendance requirements
6. Compensation and Benefits: Salary structure, mandatory benefits, and payment procedures
7. Leave Entitlements: Annual, sick, maternity/paternity, and other statutory leave policies
8. Employee Conduct and Discipline: Expected behavior, code of conduct, and disciplinary procedures
9. Performance Management: Performance evaluation procedures and criteria
10. Termination of Employment: Procedures for resignation, termination, and retirement
11. Grievance Procedures: Process for addressing employee complaints and disputes
12. Workplace Safety and Health: Safety policies and procedures in compliance with OSHA requirements
13. Confidentiality and Data Protection: Policies on handling confidential information and personal data
1. Remote Work Policy: Guidelines for working from home or remote locations, used when the company offers flexible working arrangements
2. International Assignment: Policies for employees posted overseas or in different states, included for companies with multiple locations
3. Sales Commission Structure: Detailed commission policies for sales roles, included when the company has sales positions
4. Industry-Specific Compliance: Additional requirements for regulated industries like banking or healthcare
5. Union Relations: Procedures for dealing with union matters, included when employees are unionized
6. Intellectual Property Rights: IP ownership and protection policies, important for technology or creative companies
7. Non-Competition and Non-Solicitation: Restrictions on post-employment activities, used for senior positions or sensitive roles
1. Schedule 1: Salary Scales: Detailed salary ranges and grades for different positions
2. Schedule 2: Leave Calculation Methods: Detailed formulas and examples for calculating various types of leave entitlements
3. Schedule 3: Benefits Summary: Comprehensive list of employee benefits and eligibility criteria
4. Schedule 4: Disciplinary Procedures: Detailed steps and processes for disciplinary actions
5. Schedule 5: Performance Evaluation Forms: Standard forms and criteria for performance assessments
6. Appendix A: Employee Code of Conduct: Detailed behavioral expectations and examples of misconduct
7. Appendix B: Safety Procedures: Detailed workplace safety protocols and emergency procedures
8. Appendix C: Statutory References: Reference to relevant sections of Malaysian employment laws
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