Probation Employment Contract for Malaysia

Probation Employment Contract Template for Malaysia

A comprehensive employment contract specifically designed for the probationary period of employment in Malaysia, compliant with the Employment Act 1955 and related Malaysian employment legislation. This document outlines the terms and conditions of employment during the probationary period, including job responsibilities, working hours, remuneration, benefits, performance evaluation criteria, and conditions for confirmation of permanent employment. It incorporates essential provisions required by Malaysian law while protecting both employer and employee interests during the initial employment phase.

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What is a Probation Employment Contract?

The Probation Employment Contract serves as a crucial legal document in the Malaysian employment context, establishing the initial employment relationship between an employer and a new employee. This document is typically used at the commencement of employment to set out a trial period during which both parties can assess their compatibility. It must comply with the Employment Act 1955 and other relevant Malaysian employment legislation, including provisions for minimum wage, working hours, and statutory benefits. The contract typically includes details about the probationary period duration, performance expectations, evaluation criteria, and the process for conversion to permanent employment. It's an essential tool for risk management in workforce development, providing clear guidelines for both parties while maintaining legal compliance with Malaysian employment regulations.

What sections should be included in a Probation 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 probationary contract

3. Definitions: Key terms used throughout the contract

4. Appointment and Probation Period: Details of the position and duration of probation period

5. Job Description and Duties: Outline of the role, responsibilities, and reporting structure

6. Working Hours and Location: Standard working hours, work location, and any flexibility arrangements

7. Remuneration and Benefits: Salary, allowances, and statutory benefits during probation

8. Leave Entitlements: Annual, medical, and other leave entitlements during probation

9. Performance Assessment: Evaluation criteria and review process during probation

10. Confidentiality and Data Protection: Obligations regarding company information and personal data handling

11. Termination During Probation: Notice periods and conditions for termination during probation

12. Confirmation of Employment: Conditions and process for confirmation after probation

13. Governing Law: Specification of Malaysian law as governing law

14. Entire Agreement: Standard clause confirming the contract represents the complete agreement

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

1. Intellectual Property Rights: Required for roles involving creative work or innovation

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

3. Training Requirements: Included when specific training is mandatory during probation

4. Remote Work Provisions: Required for positions allowing work from home arrangements

5. Commission Structure: Added for sales or commission-based positions

6. Overtime Arrangements: Required for roles eligible for overtime work

7. Professional Memberships: Added for roles requiring professional certifications or memberships

What schedules should be included in a Probation Employment Contract?

1. Schedule 1: Detailed Job Description: Comprehensive list of job responsibilities and requirements

2. Schedule 2: Remuneration Structure: Detailed breakdown of salary components and benefits

3. Schedule 3: Company Policies: Key company policies applicable during probation

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

5. Appendix A: Employee Handbook Reference: Reference to relevant sections of the employee handbook

6. Appendix B: Statutory Benefits Summary: Summary of statutory benefits under Malaysian law

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
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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