Simple Contractor Agreement for Malaysia

Simple Contractor Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes and regulates the relationship between a company and an independent contractor. This agreement clearly defines the scope of services, payment terms, and responsibilities while maintaining compliance with Malaysian contract law and relevant regulations. It includes essential provisions for intellectual property rights, confidentiality, and liability limitations, while explicitly distinguishing the contractor relationship from employment status to avoid misclassification under Malaysian employment law.

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What is a Simple Contractor Agreement?

The Simple Contractor Agreement is essential for businesses operating in Malaysia that engage independent contractors for specific projects or services. This document is designed to comply with Malaysian contract law, particularly the Contracts Act 1950, while addressing key aspects of the contractor relationship. It should be used when engaging external service providers on a non-employment basis, requiring clear definition of project scope, deliverables, payment terms, and relationship parameters. The agreement incorporates necessary provisions to protect both parties' interests, including intellectual property rights, confidentiality obligations, and liability limitations, while ensuring clear distinction from employment relationships to comply with Malaysian employment regulations.

What sections should be included in a Simple Contractor Agreement?

1. Parties: Identifies and provides full details of the contracting parties - the company/client and the contractor

2. Background: Brief context of the agreement and the parties' intention to enter into a contractor relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

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

5. Term and Termination: Duration of the agreement and conditions for termination by either party

6. Compensation and Payment Terms: Details of fees, payment schedule, expenses, and invoicing procedures

7. Independent Contractor Status: Clear statement of independent contractor relationship and distinction from employment

8. Contractor's Obligations: Key responsibilities, quality standards, and performance requirements

9. Client's Obligations: Client's responsibilities including provision of necessary information and materials

10. Intellectual Property Rights: Ownership and rights to work products created during the engagement

11. Confidentiality: Protection of confidential information and trade secrets

12. Limitation of Liability: Extent and limitations of contractor's liability under the agreement

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

What sections are optional to include in a Simple Contractor Agreement?

1. Non-Compete: Restrictions on contractor's ability to work with competitors, used when contractor has access to sensitive competitive information

2. Insurance: Insurance requirements for the contractor, included when services involve significant risks or regulatory requirements

3. Equipment and Materials: Provisions regarding tools and resources, needed when specific equipment is required for service delivery

4. Subcontracting: Terms for engaging subcontractors, included when subcontracting might be necessary

5. Data Protection: Specific provisions for handling personal data, required when services involve processing personal information

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term or high-value contracts

7. Dispute Resolution: Specific procedures for resolving disputes, important for high-value or complex service arrangements

What schedules should be included in a Simple Contractor Agreement?

1. Schedule A - Services Description: Detailed specification of services to be provided, including deliverables and timelines

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

3. Schedule C - Service Levels: Performance metrics and quality standards for service delivery

4. Schedule D - Key Personnel: Details of key individuals involved in service delivery, if applicable

5. Appendix 1 - Required Documentation: List of required certificates, licenses, or qualifications

6. Appendix 2 - Approved Subcontractors: List of pre-approved subcontractors, if applicable

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

Agreement Contract

Cost

Free to use
Relevant Industries

Information Technology

Professional Services

Construction

Marketing and Advertising

Healthcare

Education and Training

Creative Industries

Management Consulting

Engineering

Real Estate

Financial Services

Media and Entertainment

Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Risk and Compliance

Project Management Office

Administration

Business Development

Relevant Roles

Procurement Manager

HR Director

Legal Counsel

Project Manager

Operations Manager

Finance Manager

Contracts Administrator

Business Development Manager

Department Head

Chief Operating Officer

Managing Director

Company Secretary

Risk Manager

Compliance Officer

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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