Fixed Term Employment Contract for Malaysia

Fixed Term Employment Contract Template for Malaysia

A Fixed Term Employment Contract governed by Malaysian law establishes a temporary employment relationship for a specified duration. This comprehensive agreement outlines the terms and conditions of employment in compliance with the Employment Act 1955 and other relevant Malaysian legislation. The document covers essential elements including job responsibilities, compensation, benefits, working hours, leave entitlements, and statutory contributions. It incorporates specific provisions for fixed-term employment while ensuring adherence to local labor laws, social security requirements, and minimum wage regulations.

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What is a Fixed Term Employment Contract?

The Fixed Term Employment Contract is designed for situations where organizations in Malaysia require temporary or project-based employment arrangements with a clearly defined duration. This document type is commonly used for project-specific roles, seasonal work, temporary replacements, or specific funding-dependent positions. It ensures compliance with Malaysian employment law, particularly the Employment Act 1955 and related regulations, while clearly defining the temporary nature of the employment relationship. The contract includes comprehensive terms covering all aspects of employment, from basic salary and benefits to statutory contributions and termination procedures, tailored to the fixed-term nature of the engagement. It's essential for protecting both employer and employee interests while maintaining legal compliance in the Malaysian jurisdiction.

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

1. Parties: Identification of the employer and employee with complete details

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Details of the position and specific duration of the fixed-term contract

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

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

7. Working Hours: Standard working hours, rest days, and overtime arrangements

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

9. Leave Entitlements: Annual, medical, and other statutory leave entitlements

10. Medical Benefits: Healthcare coverage and medical examination requirements

11. Statutory Contributions: EPF, SOCSO, and EIS contributions

12. Confidentiality: Protection of company confidential information

13. Intellectual Property: Ownership of work created during employment

14. Code of Conduct: Expected behavior and compliance with company policies

15. Termination: Conditions for early termination and notice periods

16. Final Settlement: Process for final payment and return of company property

17. Governing Law: Application of Malaysian law and jurisdiction

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

1. Probation Period: Include if there is an initial probation period within the fixed term

2. Non-Competition: Include for senior positions or roles with access to sensitive information

3. Non-Solicitation: Include for client-facing roles or management positions

4. Relocation Terms: Include if the role requires relocation

5. Performance Bonus: Include if role includes performance-based incentives

6. Remote Working: Include if role allows for remote work arrangements

7. International Travel: Include if role requires international travel

8. Commission Structure: Include for sales or commission-based positions

9. Training Requirements: Include if specific training or certifications are required

10. Language Requirements: Include if specific language proficiency is required

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

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

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

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

4. Schedule 4 - Confidential Information: Definition and examples of confidential information

5. Appendix A - Statutory Benefits: Summary of statutory benefits under Malaysian law

6. Appendix B - Leave Policy: Detailed leave application and approval procedures

7. Appendix C - Code of Conduct: Detailed company code of conduct and ethics

8. Appendix D - IT Policy: Company IT usage policies and guidelines

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 legal definitions
Clauses
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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