Staffing Service Agreement for Malaysia

Staffing Service Agreement Template for Malaysia

A comprehensive agreement governed by Malaysian law that establishes the terms and conditions under which a staffing service provider will supply temporary workers or contract staff to a client company. The agreement encompasses all aspects of the staffing relationship including recruitment, placement, management, compliance with Malaysian employment laws, worker benefits, health and safety requirements, and payment terms. It includes specific provisions to ensure compliance with the Employment Act 1955, Industrial Relations Act 1967, and other relevant Malaysian legislation while protecting both the service provider's and client's interests.

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What is a Staffing Service Agreement?

The Staffing Service Agreement is essential for businesses operating in Malaysia that require flexible workforce solutions through temporary or contract staffing arrangements. This document is designed to comply with Malaysian employment laws while establishing clear responsibilities between staffing agencies and their client companies. It becomes necessary when companies need to supplement their workforce through third-party providers, whether for project-based work, temporary replacements, or specialized roles. The agreement covers crucial aspects such as worker classification, statutory compliance, benefits administration, workplace safety, and risk allocation, all within the Malaysian legal framework. It's particularly important given Malaysia's strict employment laws and the need to clearly delineate responsibilities between the staffing provider and client company.

What sections should be included in a Staffing Service Agreement?

1. Parties: Identification of the staffing service provider and the client company

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement including 'Assigned Employees', 'Services', 'Assignment Period'

4. Scope of Services: Detailed description of staffing services to be provided

5. Term and Termination: Duration of agreement and circumstances for termination

6. Service Provider Obligations: Key responsibilities including recruitment, screening, and management of assigned employees

7. Client Obligations: Client responsibilities including workplace safety, supervision, and cooperation

8. Fees and Payment Terms: Pricing structure, payment schedule, and invoicing procedures

9. Compliance with Laws: Commitment to comply with Malaysian employment laws and regulations

10. Confidentiality: Protection of confidential information exchanged during the service provision

11. Data Protection: PDPA compliance and data handling procedures

12. Indemnification: Mutual indemnification provisions for various risks

13. Insurance: Required insurance coverage for both parties

14. Dispute Resolution: Process for resolving disputes under Malaysian law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

What sections are optional to include in a Staffing Service Agreement?

1. Foreign Worker Provisions: Include when services involve foreign workers, addressing Immigration Act compliance

2. Intellectual Property Rights: Include when assigned employees may create IP during their assignments

3. Non-Solicitation: Include to prevent direct hiring of assigned employees by the client

4. Performance Standards: Include when specific KPIs or service levels are required

5. Transition Services: Include when handover provisions are needed at contract end

6. Force Majeure: Include when specific force majeure provisions beyond standard ones are needed

7. Employee Benefits: Include when clarification of benefit responsibilities is needed between parties

What schedules should be included in a Staffing Service Agreement?

1. Schedule 1 - Service Description: Detailed scope of staffing services and delivery methodology

2. Schedule 2 - Fee Schedule: Detailed pricing structure, markup percentages, and special rates

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Compliance Checklist: List of required compliance documents and certifications

5. Schedule 5 - Required Insurance: Specific insurance types and coverage amounts

6. Appendix A - Standard Operating Procedures: Detailed procedures for employee assignment and management

7. Appendix B - Reporting Templates: Standard forms for performance reporting and invoicing

8. Appendix C - Key Personnel: List of key contacts from both parties

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

Service Agreement

Cost

Free to use
Relevant Industries

Manufacturing

Technology

Construction

Healthcare

Financial Services

Retail

Logistics

Oil and Gas

Telecommunications

Professional Services

Hospitality

Education

Agricultural

Mining

Automotive

Relevant Teams

Human Resources

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Project Management

Talent Acquisition

Contract Administration

Executive Leadership

Relevant Roles

Human Resources Director

Legal Counsel

Procurement Manager

Operations Director

Finance Manager

Compliance Officer

Risk Manager

Project Manager

HR Business Partner

Talent Acquisition Manager

Contracts Administrator

Chief Financial Officer

General Manager

Managing Director

Chief Operations 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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