Fixed Term Employment Agreement for Malaysia

Fixed Term Employment Agreement Template for Malaysia

A Fixed Term Employment Agreement governed by Malaysian law is a legally binding contract that establishes a temporary employment relationship for a specific duration or project. The agreement complies with the Malaysian Employment Act 1955 and related employment legislation, incorporating mandatory provisions for working hours, leave entitlements, EPF contributions, and SOCSO benefits. This document outlines the terms and conditions of employment, including duties, compensation, benefits, and termination provisions, while ensuring compliance with local labor laws and regulations. It provides both employer and employee with clear guidelines on their rights and obligations throughout the fixed-term period.

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What is a Fixed Term Employment Agreement?

The Fixed Term Employment Agreement is designed for situations where an organization requires temporary staffing for a specific duration, project, or seasonal work in Malaysia. This document is commonly used for project-based roles, temporary replacements, or when organizations need specialized expertise for a defined period. The agreement must comply with Malaysian employment law, particularly the Employment Act 1955, and includes essential terms covering remuneration, working hours, leave entitlements, and statutory benefits. It provides protection for both employer and employee by clearly defining the employment relationship's scope, duration, and termination conditions, while ensuring all statutory requirements are met. This agreement type is particularly relevant for industries with project-based work structures or seasonal business fluctuations.

What sections should be included in a Fixed Term Employment Agreement?

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief context of the employment arrangement and purpose of the fixed-term contract

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Details of the position, employment duration, and any probation period

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Hours of Work: Working hours, overtime arrangements, and rest days as per Malaysian law

8. Remuneration and Benefits: Salary, allowances, bonuses, and statutory benefits including EPF and SOCSO

9. Leave Entitlements: Annual, medical, and other types of leave as per Malaysian employment law

10. Termination: Notice periods, grounds for termination, and end of fixed term provisions

11. Confidentiality: Protection of company confidential information

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

13. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and notices

What sections are optional to include in a Fixed Term Employment Agreement?

1. Intellectual Property: Required when employee will be creating IP or handling sensitive company IP

2. Non-Competition: Added when restricting post-employment competition is necessary, subject to Malaysian law limitations

3. International Travel: Include when role requires international travel or overseas assignments

4. Performance Targets: Used when employment continuation is linked to specific performance metrics

5. Training Requirements: Include when specific training or certifications are required for the role

6. Remote Work Provisions: Added when allowing work from home or remote working arrangements

7. Data Protection: Required when employee will handle personal data subject to PDPA

8. Language Requirements: Include when specific language proficiency is essential for the role

What schedules should be included in a Fixed Term Employment Agreement?

1. Schedule 1 - Job Description: Detailed description of roles, responsibilities, and key performance indicators

2. Schedule 2 - Remuneration Package: Detailed breakdown of salary components, benefits, and allowances

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Benefits Summary: Detailed description of all employee benefits and eligibility conditions

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Confidential Information: Specific details of what constitutes confidential information

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 Contract

Cost

Free to use
Relevant Industries

Technology

Construction

Education

Healthcare

Manufacturing

Professional Services

Media and Entertainment

Financial Services

Retail

Hospitality

Energy

Telecommunications

Research and Development

Non-Profit Organizations

Agriculture

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Research & Development

Information Technology

Marketing

Production

Quality Assurance

Administration

Compliance

Relevant Roles

Project Manager

Contract Software Developer

Interim CFO

Temporary Teacher

Research Assistant

Construction Site Supervisor

Contract Medical Officer

Seasonal Operations Manager

Interim HR Manager

Technical Consultant

Contract Marketing Specialist

Temporary Production Supervisor

Project Coordinator

Visiting Professor

Contract Business Analyst

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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