General Manager Contract Template for Malaysia

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Key Requirements PROMPT example:

General Manager Contract

"I need a General Manager Contract for a manufacturing company in Malaysia, starting March 1, 2025, with strong emphasis on KPI-based performance bonuses and oversight of international operations in Southeast Asia."

Document background
The General Manager Contract serves as a crucial legal document for organizations operating in Malaysia that need to formalize the employment relationship with their senior management personnel. This contract type is essential when appointing individuals to general management positions, requiring careful articulation of executive responsibilities, performance expectations, and compensation packages while ensuring compliance with Malaysian employment laws. It typically includes comprehensive provisions covering areas such as strategic decision-making authority, profit center responsibilities, team leadership, and protection of company interests. The document is particularly important in the Malaysian context where employment relationships at the management level must balance local statutory requirements with international best practices in executive employment.
Suggested Sections

1. Parties: Identification of the employer company and the General Manager, including full legal names and addresses

2. Background: Brief context of the appointment and the company's business

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, appointment effective date, and duration (fixed-term or permanent)

5. Duties and Responsibilities: Detailed description of the GM's role, reporting relationships, and key performance areas

6. Place of Work: Primary work location and any travel requirements

7. Hours of Work: Expected working hours while acknowledging flexibility required for the role

8. Remuneration and Benefits: Base salary, bonuses, allowances, and other benefits

9. Leave Entitlements: Annual leave, medical leave, and other types of leave

10. Confidentiality: Protection of company confidential information and trade secrets

11. Intellectual Property: Ownership of work created during employment

12. Non-Competition and Non-Solicitation: Post-employment restrictions on competing activities

13. Termination: Grounds for termination, notice periods, and procedures

14. Company Policies: Compliance with company policies and procedures

15. Governing Law: Malaysian law as the governing law and jurisdiction

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

Optional Sections

1. Probation Period: Include if the GM will be subject to an initial probation period

2. International Travel: Include if role requires significant international travel

3. Stock Options/Share Schemes: Include if the GM will participate in company share schemes

4. Relocation Package: Include if the GM is being relocated for the position

5. Performance Metrics: Include if specific KPIs are to be contractually binding

6. Garden Leave: Include if the company wants the right to place the GM on garden leave

7. Change of Control: Include provisions relating to company ownership changes

8. Expatriate Benefits: Include for international hires requiring visa sponsorship

9. Secondment Terms: Include if the GM may be seconded to related companies

Suggested Schedules

1. Schedule 1 - Compensation Package: Detailed breakdown of salary, bonuses, and benefits

2. Schedule 2 - Job Description: Detailed description of duties, responsibilities, and reporting lines

3. Schedule 3 - Performance Bonus Scheme: Details of performance metrics and bonus calculations

4. Schedule 4 - Company Policies: Key company policies applicable to the position

5. Schedule 5 - Benefits Summary: Comprehensive list of benefits and entitlements

6. Appendix A - Restricted Activities: Detailed list of prohibited competitive activities

7. Appendix B - Company Group Structure: List of related companies covered by various provisions

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

Clauses
Relevant Industries

Manufacturing

Retail

Hospitality

Technology

Financial Services

Healthcare

Construction

Education

Telecommunications

Professional Services

Real Estate

Logistics

Energy

Consumer Goods

Agriculture

Relevant Teams

Human Resources

Legal

Board Secretariat

Executive Leadership

Compensation & Benefits

Corporate Governance

Talent Management

Risk & Compliance

Operations Management

Strategic Planning

Relevant Roles

General Manager

Regional General Manager

Country General Manager

Division General Manager

Business Unit General Manager

Operations General Manager

Commercial General Manager

Plant General Manager

Branch General Manager

Project General Manager

Acting General Manager

Deputy General Manager

Assistant General Manager

General Manager (Operations)

General Manager (Administration)

Industries
Employment Act 1955: The primary legislation governing employment relationships in Malaysia, covering terms of employment, minimum benefits, and working conditions. Although GMs might be above the wage threshold, certain fundamental provisions still apply.
Companies Act 2016: Relevant for defining director and officer duties, as General Managers often have significant management responsibilities and may be considered company officers under the law.
Industrial Relations Act 1967: Governs the relationship between employers and employees, including dispute resolution mechanisms and unfair dismissal provisions.
Employees Provident Fund Act 1991: Mandates contributions to the retirement savings scheme for employees in Malaysia, including management staff.
Personal Data Protection Act 2010: Relevant for handling personal data and confidentiality clauses, particularly important for management positions with access to sensitive information.
Employees' Social Security Act 1969: Covers social security protection and insurance for employees, including workplace injury coverage.
Income Tax Act 1967: Relevant for structuring compensation packages and ensuring compliance with tax regulations for executive remuneration.
Occupational Safety and Health Act 1994: Establishes duties for employers and employees regarding workplace safety, including management responsibilities for ensuring compliance.
Competition Act 2010: Relevant for non-compete clauses and restrictions on post-employment activities, particularly important for senior management positions.
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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