Limited Term Employment Contract for Malaysia

Limited Term Employment Contract Template for Malaysia

A comprehensive employment agreement governed by Malaysian law, specifically designed for fixed-term employment relationships. This contract complies with the Employment Act 1955 and other relevant Malaysian employment legislation, establishing a definite period of employment with clear terms and conditions. The document covers essential employment terms including compensation, benefits, working hours, and termination provisions, while ensuring compliance with local statutory requirements and providing protection for both employer and employee interests.

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What is a Limited Term Employment Contract?

The Limited Term Employment Contract is essential for businesses operating in Malaysia that need to engage employees for a specific duration or project. This document is designed to comply with Malaysian employment law, particularly the Employment Act 1955 and related legislation, while providing clear terms for fixed-duration employment relationships. It's commonly used for project-based work, seasonal employment, temporary replacements, or specific business needs with a defined timeline. The contract includes all mandatory provisions required by Malaysian law, such as working hours, leave entitlements, and termination notice periods, while also protecting both parties' interests through clear terms regarding duties, compensation, and duration of employment.

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

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

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: Position title, employment duration, and contract renewal conditions

5. Duties and Responsibilities: Main job responsibilities and reporting relationships

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

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

8. Remuneration: Base salary, payment schedule, and other fixed monetary benefits

9. Benefits: Statutory and contractual benefits including leave entitlements

10. Probation Period: Duration and terms of the probationary period

11. Termination: Notice periods and grounds for contract termination

12. Confidentiality: Protection of company confidential information

13. Company Policies: Compliance with company policies and procedures

14. Governing Law: Application of Malaysian law and jurisdiction

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

1. Mobility Clause: Required if employee may need to relocate or travel frequently

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

3. Intellectual Property: Necessary for creative or technical roles involving IP creation

4. Performance Targets: Include for sales roles or positions with specific KPIs

5. Commission Structure: Required for sales positions with variable compensation

6. Work Permit: Include for foreign employees requiring work permits

7. Training Obligations: Add when specific training requirements or bonds are involved

8. Remote Work: Include if remote working arrangements are permitted

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

1. Schedule 1 - Job Description: Detailed breakdown of job responsibilities and requirements

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

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

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

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

6. Appendix B - Benefits Summary: Detailed description of all employee benefits

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

Manufacturing

Financial Services

Healthcare

Education

Retail

Construction

Professional Services

Hospitality

Energy

Telecommunications

Agricultural

Entertainment

Transportation

Mining

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Recruitment

Compliance

Employee Relations

Payroll

Management

Relevant Roles

Project Manager

Contract Software Developer

Temporary Administrative Assistant

Seasonal Operations Manager

Interim Financial Controller

Contract Teacher

Research Associate

Project Engineer

Temporary Sales Representative

Contract HR Specialist

Seasonal Production Supervisor

Interim Marketing Manager

Contract Business Analyst

Project Coordinator

Fixed-term Executive

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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