Project Based Employment Contract for Malaysia

Project Based Employment Contract Template for Malaysia

A Project Based Employment Contract under Malaysian law establishes a fixed-term employment relationship tied to a specific project or undertaking. This agreement comprehensively outlines the terms and conditions of employment, including project scope, duration, compensation, and benefits while ensuring compliance with Malaysian employment legislation, particularly the Employment Act 1955. The contract addresses crucial aspects such as project deliverables, performance metrics, intellectual property rights, and post-project obligations, while incorporating necessary statutory requirements for fixed-term employment in Malaysia.

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What is a Project Based Employment Contract?

The Project Based Employment Contract is designed for situations where an organization requires specialized talent for a specific project or fixed-term initiative in Malaysia. This document is essential when engaging employees for defined projects, temporary assignments, or time-bound initiatives where the employment relationship is intended to conclude upon project completion. It ensures compliance with Malaysian employment law while protecting both employer and employee interests through clear definition of project scope, duration, deliverables, and terms of engagement. The contract addresses unique aspects of project-based employment such as milestone-based payments, project-specific performance metrics, and completion criteria, while incorporating mandatory provisions required under Malaysian employment legislation. It is particularly relevant for industries with project-centric work models and helps organizations manage temporary workforce requirements effectively.

What sections should be included in a Project Based Employment Contract?

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

2. Background: Context of the project-based employment and brief description of the project

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Details of the position, project duration, and employment term

5. Project Scope: Detailed description of the project and employee's role

6. Duties and Responsibilities: Specific duties, reporting structure, and performance expectations

7. Remuneration and Benefits: Salary, allowances, and statutory benefits as per Malaysian law

8. Working Hours and Location: Work schedule, overtime provisions, and place of work

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

10. Confidentiality: Non-disclosure obligations regarding company information

11. Intellectual Property: Ownership of work product and innovations

12. Termination: Conditions for early termination and notice requirements

13. Post-Termination Obligations: Return of company property and continuing obligations

14. Governing Law: Malaysian law as governing law and jurisdiction

15. General Provisions: Standard contract clauses including amendments and notices

What sections are optional to include in a Project Based Employment Contract?

1. Probation Period: Include if the project duration is long enough to warrant a probation period

2. Performance Bonus: Include if project completion bonuses or performance incentives are offered

3. Non-Competition: Include if employee will have access to sensitive competitive information

4. Mobility Clause: Include if the project may require work at different locations

5. Training Requirements: Include if specific training is required for the project

6. Equipment and Resources: Include if specific provisions about company-provided tools are needed

7. Insurance Coverage: Include if additional insurance beyond statutory requirements is provided

8. Overtime Policy: Include if project requires specific overtime arrangements

What schedules should be included in a Project Based Employment Contract?

1. Schedule 1 - Project Details: Detailed project specifications, milestones, and deliverables

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary, allowances, and benefits

3. Schedule 3 - Performance Metrics: Key performance indicators and evaluation criteria

4. Schedule 4 - Company Policies: Relevant company policies applicable to project-based employees

5. Schedule 5 - Statutory Benefits: Details of EPF, SOCSO, and other statutory contributions

6. Appendix A - Job Description: Detailed description of roles and responsibilities

7. Appendix B - Project Timeline: Project phases and expected completion dates

8. Appendix C - Confidential Information: List of information classified as confidential

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
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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