Short Form Contractor Agreement Template for Malaysia

A concise contractor agreement template designed for use under Malaysian law, suitable for engaging independent contractors or service providers for specific projects or services. This agreement incorporates essential elements required by Malaysian contract law while maintaining a streamlined structure. It covers key aspects such as scope of services, payment terms, intellectual property rights, and confidentiality obligations, while clearly establishing the independent contractor relationship to avoid potential employment law implications. The document is drafted in compliance with the Malaysian Contracts Act 1950 and other relevant local legislation.

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What is a Short Form Contractor Agreement?

The Short Form Contractor Agreement is designed for businesses operating in Malaysia who need a straightforward yet comprehensive agreement for engaging independent contractors. This document is particularly useful when the contracting arrangement is relatively straightforward and doesn't require complex service level agreements or extensive operational details. It complies with Malaysian law, including the Contracts Act 1950 and relevant employment legislation, while maintaining clear differentiation between contractor and employee status. The agreement is structured to protect both parties' interests through essential provisions covering services, payment, intellectual property, and confidentiality, while remaining concise enough for regular business use. It's especially suitable for professional services, consulting arrangements, and project-based work where a full-length contract would be unnecessarily complex.

What sections should be included in a Short Form Contractor Agreement?

1. Parties: Identification of the contracting parties - the company and the contractor, including full legal names and addresses

2. Background: Brief context of the agreement and the intention to engage the contractor

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Clear description of the services to be provided by the contractor

5. Term: Duration of the agreement, including start date and end date if applicable

6. Payment Terms: Fees, payment schedule, invoicing requirements and payment method

7. Contractor Obligations: Key responsibilities and commitments of the contractor

8. Company Obligations: Key responsibilities and commitments of the company

9. Independent Contractor Status: Clear statement of contractor's independent status and not an employee

10. Intellectual Property: Ownership and rights to work product and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Conditions and process for ending the agreement

13. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

What sections are optional to include in a Short Form Contractor Agreement?

1. Insurance: Requirements for contractor to maintain specific insurance coverage, included when services involve significant risks

2. Non-Compete: Restrictions on working with competitors, included when contractor has access to sensitive information or clients

3. Data Protection: Specific obligations regarding personal data handling, included when services involve processing personal data

4. Health and Safety: Safety requirements and compliance, included for services performed on company premises or high-risk activities

5. Equipment and Resources: Provisions regarding tools and resources, included when specific equipment or resources are required

6. Performance Standards: Specific KPIs or quality standards, included when measurable performance metrics are required

7. Subcontracting: Rules about engaging subcontractors, included when subcontracting might be necessary

8. Force Majeure: Provisions for unforeseen circumstances, included when services are critical or long-term

What schedules should be included in a Short Form Contractor Agreement?

1. Schedule 1 - Services Description: Detailed scope of services, deliverables, and timelines

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Key Personnel: Details of main contractor personnel who will provide the services

4. Schedule 4 - Service Levels: Specific performance metrics and quality standards if applicable

5. Appendix A - Required Insurance: Details of insurance types and coverage amounts required

6. Appendix B - Company Policies: Relevant company policies the contractor must comply with

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

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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