Permanent Employment Contract for Malaysia

Permanent Employment Contract Template for Malaysia

A comprehensive employment agreement governed by Malaysian law that establishes a permanent employment relationship between an employer and employee. This contract incorporates all essential terms and conditions required under the Employment Act 1955 and related Malaysian employment legislation, including provisions for remuneration, working hours, leave entitlements, and statutory benefits. The document ensures compliance with local labor laws while protecting both employer and employee interests through clear articulation of rights, obligations, and expectations in the employment relationship.

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What is a Permanent Employment Contract?

This Permanent Employment Contract template is designed for use in establishing long-term employment relationships in Malaysia. It serves as a fundamental document for formalizing the employment arrangement between organizations and their full-time employees, ensuring compliance with Malaysian employment laws, particularly the Employment Act 1955 and related legislation. The contract encompasses essential elements required by law, including working hours, leave entitlements, benefits, and termination provisions, while also addressing modern employment considerations such as data protection and intellectual property rights. It is structured to protect both employer and employee interests while maintaining flexibility for customization based on specific industry requirements, position seniority, and company policies.

What sections should be included in a Permanent 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 agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Position title, employment status, and commencement date

5. Duties and Responsibilities: Main job duties, reporting structure, and performance expectations

6. Place of Work: Primary workplace location and potential for relocation

7. Hours of Work: Standard working hours, overtime provisions, and rest periods as per Employment Act

8. Remuneration and Benefits: Salary, allowances, statutory contributions (EPF, SOCSO), and other benefits

9. Leave Entitlements: Annual, medical, maternity/paternity, and other statutory leave provisions

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

11. Termination: Notice periods, grounds for termination, and post-employment obligations

12. Governing Law: Application of Malaysian law and jurisdiction

What sections are optional to include in a Permanent Employment Contract?

1. Probation Period: Terms of probationary period if applicable for new employees

2. Non-Competition: Restrictions on working with competitors, used for senior positions

3. Intellectual Property: IP rights assignment, relevant for technical or creative roles

4. Remote Work: Terms for working from home or remote locations if applicable

5. Commission Structure: Details of commission calculation for sales roles

6. International Assignment: Terms for international postings if relevant

7. Share Options: Employee share scheme participation for eligible employees

8. Performance Bonus: Structure and conditions of performance-based bonuses

What schedules should be included in a Permanent Employment Contract?

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

2. Schedule 2 - Compensation Package: Detailed breakdown of salary components and benefits

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

4. Schedule 4 - Code of Conduct: Expected behavioral standards and ethical guidelines

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

6. Appendix B - Privacy Notice: Personal data protection notice as required by PDPA 2010

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

Manufacturing

Technology

Financial Services

Healthcare

Education

Retail

Construction

Professional Services

Hospitality

Telecommunications

Energy

Transportation

Agriculture

Mining

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Customer Service

Administration

Production

Quality Assurance

Supply Chain

Business Development

Project Management

Relevant Roles

Chief Executive Officer

Managing Director

General Manager

Department Head

Senior Manager

Manager

Executive

Officer

Administrator

Specialist

Analyst

Engineer

Technician

Sales Representative

Customer Service Representative

Accountant

Human Resources Executive

Marketing Executive

Operations Manager

Project Manager

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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