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Employment Contract

This document is a template for an employment offer letter, outlining the terms and conditions of employment including salary, duties, probation period, termination, and confidentiality obligations. It emphasizes the importance of consulting a qualified lawyer for proper completion and usage. The document also includes sections on working days, annual leave, medical leave, and conflict of interest policies.

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0% found this document useful (0 votes)
134 views10 pages

Employment Contract

This document is a template for an employment offer letter, outlining the terms and conditions of employment including salary, duties, probation period, termination, and confidentiality obligations. It emphasizes the importance of consulting a qualified lawyer for proper completion and usage. The document also includes sections on working days, annual leave, medical leave, and conflict of interest policies.

Uploaded by

yee -
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 10

This template document is provided free of charge and is intended for guidance purposes only.

We recommend you obtain the


help of a qualified lawyer to complete it. Use of this document is subject to the terms of use set out at www.lpplaw.my and it
does not constitute a lawyer-client relationship between any user of this document and our law firm.

© Lee & Poh Partnership 2021


[To be printed on the company’s letterhead]

Our Ref:

Private and Confidential

Date :

[Insert employee’s full name]


[Insert employee’s NRIC No.]
[Insert employee’s address]

Dear

RE: OFFER OF EMPLOYMENT – POSITION OF [ INSERT POSITION ] (“EMPLOYMENT CONTRACT”)

We are pleased to offer you employment as [insert position] with [insert name of company]
(“Company”). Your appointment is subject to the following terms and conditions of employment, the
employee handbook, as well as any rules, procedures and policies of the Company which may be
amended from time to time:

1. Commencement Date

Your employment with the Company will commence on [•].

2. Salary

2.1 Your basic salary will be RM [•] per month.

2.2 In addition to the basic salary, you shall be eligible to the following: [Delete if not applicable]

(a) [travelling allowance will be RM [•] per month]; and


(b) [insert any other additional fixed allowances payable to employees on a regular basis].

[User note: Any such allowances which are a fixed sum payable on a regular basis (save for
travelling allowance) will likely be subject to EPF and SOCSO contributions. We advise you to
consult the relevant authorities or a lawyer if you are in doubt of your statutory obligations.]

2.3 Your payable monthly salary shall be subject to any deductions for taxes and withholdings for
EPF, SOCSO and EIS contributions, as required by applicable laws in effect from time to time.

3. Duties and Responsibilities

3.1 In this capacity, you shall have the following duties and undertake the following responsibilities:

 ____________________________________

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 ____________________________________
 ____________________________________

3.2 You shall perform such other duties as are customarily performed by other persons in similar
positions, including other duties as may arise from time to time and as may be assigned.

3.3 You shall report to and take instructions from [•] or any other senior officer of the Company as
informed to you from time to time.

3.4 You shall perform assigned duties and responsibilities in a professional manner, in good faith,
and to the best of your skills, abilities, talents and experience.

4. Work Location

You will primarily perform your employment duties at [insert location]. However, you may be
required to work elsewhere as reasonably directed by your supervisor or manager. You may,
from time to time and in the performance of your duties and responsibilities, be required to
travel to places within or outside Malaysia by such means and on such occasions as the
Company may require.

5. Probation Period
[User note: The law does not prescribe a maximum probation period. The probation period
may be extended if the employee does not meet the expected standard of employment. It is
recommended that the Employment Contract reserves the employer’s right to extend the
probation period.]

5.1 Your probation period shall be [•] months, starting from the Commencement Date, during which
time your performance will be reviewed for confirmation.

5.2 The probation period may be shortened or extended for a further period of three (3) months to
six (6) months at the sole discretion of the Company.

5.3 Upon completion of your probation period, you will be informed in writing by the Company of
your confirmation of employment. For the avoidance of doubt, you shall not be deemed to be
confirmed notwithstanding completion (satisfactory or otherwise) of the periods of probation,
until you have been officially confirmed in writing.

5.4 At any time during your probation period, if your performance is unsatisfactory, the Company
may terminate your employment by giving seven (7) working days’ notice in writing or salary
equivalent to seven (7) working days in lieu of such notice.

5.5 During your probation period, you may terminate your employment by giving seven (7) working
days’ notice in writing or salary equivalent to seven (7) working days in lieu of such notice.

6. Termination
[User note: Employees whose monthly wage does not exceed RM 2,000 and/or who are
participating in manual labour regardless of monthly wage are subject to the Employment Act

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1955 (“EA Employees”). For EA Employees, the length of a termination notice shall be the
same for both employer and employee. Moreover, termination is subject to minimum notice
period as prescribed by the Act, which is dependent on the EA Employee’s length of service:
the notice shall not be less than 4 weeks' notice if employed for less than 2 years; 6 weeks'
notice if employed for 2 years or more but less than 5 years; 8 weeks' notice if employed for 5
years or more.

For all other employees who are not covered by the Act (“Non-EA Employees”), their benefits
and requirements are subject to their contract of employment and/or company policy. Having
said that, employers are encouraged to still use the provisions within the EA as a “bare
minimum” guideline. Of course, you can choose to set higher threshold than the minimum
requirements, or choose to just standardise the requirements for all employees for easy
calculation and records.]

6.1 Upon confirmation of your employment, either party may terminate your employment by giving
the other party [•] months’ notice in writing or by paying [•] months’ salary in lieu of notice.

6.2 Notwithstanding the foregoing, the Company reserves the right to summarily dismiss you for the
following reasons: serious misconduct; dishonesty; fraud; insubordination; gross neglect of duty
or incompetent in the performance of your duties; criminal conviction other than traffic or
minor offences (which in the Company’s opinion does not affect your position within the
Company); if in the opinion of a medical practitioner, you are physically or mentally incapable of
performing your duties and may remain so for more than three (3) months; repeated
misconduct after warnings have been issued; breach of confidence; bankruptcy; offering or
accepting bribes or any other default which, in the Company’s sole opinion, justifies such
termination, with immediate effect and without notice, indemnities or other forms of
compensation (without prejudice to the rights and remedies of the Company for any breach of
this Employment Contract and your continuing obligations hereunder).

6.3 Unless the Company approves or requires otherwise, annual leave which you may be entitled to
up to the effective date of termination of your employment shall not be used to offset any part
of the notice period referred to above.

6.4 At the time of termination, you agree to return all properties belonging to the Company,
including but not limited to [laptops, cell-phones, and any other electronic devices]. [Delete if
not applicable]

7. Working Days

7.1 The Company’s normal working days and hours are as follows :
Monday – Friday : [•]
Lunch break : Monday – Friday
[•]
Friday
[•]
(This is only applicable for male Muslim employees
performing Friday prayers)
Saturday – Sunday : Rest day

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[User note: Under the law, employers are obliged to pay overtime pay for EA Employees. For
overtime in excess of the normal hours of work per day, the employee shall be paid at a rate
not less than one and a half times his or her hourly rate. For overtime in excess of the normal
hours of work on a paid public holiday, the employee shall be paid at a rate which is not less
than three times his or her hourly rate. For Non-EA Employees, overtime pay is optional.]

[User note: In respect of public holidays, EA Employees shall be entitled to a total of 11


gazetted public holidays as well as any day declared as a public holiday under Section 8 of the
Holidays Act 1951.]

7.2 The Company requires you to observe the normal working days/office hours mentioned above.
However, should the exigencies of your duties require, you are expected to work beyond your
normal hours of work or on a rest day or on any of the gazette public holidays. Unless otherwise
required by law, you shall not be entitled to overtime payment for work done in excess of the
normal working hours on normal working days, during the rest days and on gazetted public
holidays.

7.3 The Company reserves the right to change the work schedule of employees when the need
arises to adapt to the changing business needs and employees will be notified in advance.

8. Transfer
[User note: While the law recognises the prerogative right of employers to reorganise and
transfer their workforce in order to achieve business goals, these transfers must be done in
good faith and not to victimise an employee. Additionally, a transfer cannot involve a material
change or affect the employee’s terms and conditions of employment. If not, there will be a
risk that the employee could claim for constructive dismissal.]

The Company reserves the right to transfer you to any present or future branch, station,
division, department of the Company as deemed fit without geographical limits, or transfer you
to other position within the Company.

9. Annual Leave
[User note: For EA Employees, their minimum annual leave entitlement shall be as follows: 8
days if employed for less than 2 years; 12 days if employed for 2 years or more, but less than 5
years; 16 days if employed for 5 years or more.]

9.1 You will be entitled to [•] days’ paid annual leave for each complete year of service, such leave
accruing on a pro rata basis throughout that particular year.

9.2 Prorated advanced leave will be allowed for confirmed employees with less than one (1) year of
service before they have accrued their annual leave but not for probationary employees.

9.3 You may carry forward up to [•] days of unused annual leave to the following leave year.

9.4 Subject to approval by the Company, application for seven (7) days leave or less must be
submitted at least one (1) week in advance while application for seven (7) days or more must be

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submitted at least one (1) month in advance.

10. Medical Leave


[User note: EA Employees are entitled to minimum paid sick leave in accordance with their
length of service with the company: 14 days if employed for less than 2 years; 18 days if
employed for 2 years or more, but less than 5 years; 22 days if employed for 5 years or more.]

10.1 You are entitled to paid medical leave of [•] days for each complete year of service where no
hospitalisation is required.

[User note: EA Employees are also entitled to 60 days paid sick leave if hospitalisation is
necessary as may be certified by a registered medical practitioner or medical officer. However,
EA Employees are only entitled to an aggregate of 60 days paid sick leave (with or without
hospitalisation) in one calendar year.]

10.2 You are entitled to sixty (60) days in each calendar year if hospitalisation is necessary as may be
certified by a registered medical practitioner or medical officer.

10.3 Each claim for sick leave must be accompanied by a valid medical certificate issued by a
registered medical practitioner and certified by your immediate superior.

11. Medical Benefits

You will be entitled to a maximum of [•] per annum of medical attention and treatment by a
registered medical practitioner or medical officer (claims must be supported by valid medical
receipts), except for any surgical charges or expenses in respect of pregnancy, confinement,
miscarriage, inoculations, vaccinations, special medical tests, specialist treatment and self-
inflicted injuries. Such medical benefits are only applicable to the Company’s employees, not
employees’ family members.

12. Increment and/or Bonus

Any increment or bonuses paid to employees shall be paid at the sole discretion of the
Company, depending upon your performance and the Company’s financial results.

13. Conflict of Interest Policy

13.1 During your employment with the Company, you must not:

(a) at any time allow yourself to be placed in a position where your personal interests might
conflict with your duties and responsibilities, whether directly or indirectly; and

(b) be directly or indirectly engaged, interested in or undertake in whatever capacity


(whether on your own behalf or on behalf of or in association with others) and whether
for reward or gratuitously, any employment, trade, business activity (whether full-time
or part-time), office or work whatsoever otherwise than in respect of your duties and
responsibilities to the Company, or retain any fee, except with the written consent of

Page 5 of 10
the Company. Nevertheless, in no event any of the foregoing conducts shall be
approved if that would create a conflict of interest with the Company.

13.2 By signing this Employment Contract, you confirm that you have no contractual commitments or
other legal obligations that would prohibit you from performing your duties for the Company.

14. Confidentiality

14.1 You acknowledge that Confidential Information (as defined below) which is vital to the success
of the business of the Company may be disclosed or made available to you in the course of
employment.

14.2 “Confidential Information” shall mean any information acquired by you or to which you had or
were given access in the course of carrying out your duties and responsibilities and which:

(a) is a trade secret of the Company or its related corporations or is otherwise the
confidential property of the Company or its related corporations;

(b) relates to any client, business partner or other contact of the Company or its related
corporations;

(c) relates to any business relationship, arrangement, contract or transaction of the


Company or its related corporations; or

(d) was acquired by you under a duty of confidentiality,

whether represented in written, tangible, electronic or any other form.

14.3 “Confidential Information” shall mean any data or information that is competitively sensitive
material and not generally known to the public, including, but not limited to, any and all
proprietary discoveries, ideas, procedures, systems, electronic reproductions and transmissions,
inventions, designs, models, software, technical improvements, modifications, or changes,
technical knowledge, formulae, know-how, quality control or assurance, components,
regulatory issues, financial information, plans or strategies, customer/supplier lists, contacts,
prices, pricing policies and procedures, marketing data, product data or any other information
belonging to the Company, its clients or associates that you may come into contact with in the
course of carrying out your duties and responsibilities from time to time. It shall also include
information belonging to third parties which the Company was under an obligation to keep
confidential and which you received on a need-to-know basis.

14.4 You shall not, either during the course of employment or at any time thereafter:

(a) disclose or use at any time for yourself or for the benefit of any third party, any
Confidential Information, whether or not developed by you;

(b) copy or reproduce in any form or on any media or device or allow others access to any
Confidential Information; and

Page 6 of 10
(c) remove or e-mail any documents or tangible items containing any Confidential
Information from its original location,

except (and only to the extent) as required to carry out your duties and responsibilities or by
law, and unless you first obtain written consent from an officer of the Company, or unless and
until such Confidential Information shall have become general public knowledge by any means
other than disclosure by you.

14.5 You shall, upon termination of your employment and/or on request by the Company, delete all
Confidential Information from any reusable material and destroy all other documents and
tangible items which contain or refer to any Confidential Information and which are in your
possession or under your control.

14.6 All Confidential Information disclosed to you by the Company (i) are and shall remain the sole
and exclusive property of the Company, and (ii) are disclosed or permitted to be acquired by you
solely in reliance on your agreement to maintain them in confidence and not to use or disclose
them to any other person except in furtherance of the Company’s business. Except as expressly
provided herein, this Employment Contract does not confer any right, license, ownership or
other interest or title in, to or under the Confidential Information to you.

14.7 You acknowledge that any use or disclosure of Confidential Information in a manner
inconsistent with your confidentiality obligations herein will give rise to irreparable injury for
which damages would not be an adequate remedy. Accordingly, in addition to any other legal
remedies which may be available at law or in equity, the Company shall be entitled to equitable
or injunctive relief against the unauthorised use or disclosure of Confidential Information. The
Company shall be entitled to pursue any other legally permissible remedy available as a result of
such breach, including but not limited to damages (including reasonable solicitor’s fees and
cost), both direct and consequential.

15. Restrictive Covenants


[User note: In Malaysia, post-termination restrictive covenants are generally unenforceable,
although in practice, employers often include restrictive covenants in their employment
contracts for deterrent effect. Please consider if you would like to include this.]

15.1 During your employment and for a period of twelve (12) months immediately after the
termination of your employment with the Company, you specifically agree not to:

(a) directly or indirectly engage in, conduct, carry on or be involved or interested in or


associated with any trade or business, whether alone or jointly and whether as owner,
partner, officer, consultant, employee or otherwise (other than as the holder of not
more than 5% of the shares carrying unrestricted voting rights in any company whose
shares are listed on any recognised stock exchange), which is wholly or partly in
competition with the Company;

(b) canvass, solicit or approach or cause to be canvassed, solicited or approached, directly


or indirectly, in competition with the Company any business dealings or transactions
from any person, entity or business with whom you had personally dealt with at any

Page 7 of 10
time during the period of twelve (12) months prior to the termination of your
employment;

(c) canvass, solicit the custom of or endeavour to the entice away from the Company any
person which is, or has at any time during the period of twelve (12) months prior to the
termination of your employment been, a customer of or in the habit of dealing with the
Company; and

(d) solicit or endeavour to entice away any person, employee, officer or manager of the
Company or any person who has been an employee, officer or manager of the Company
during the period of twelve (12) months prior to the termination of your employment.

15.2 The provisions of Clauses 15.1(a) to 15.1(d) are separate and severable and shall be enforceable
accordingly.

15.3 You hereby acknowledge and agree that the restrictions contained in Clause 15 are reasonable
and necessary to protect the Company’s legitimate interests. While the restrictions are
considered by you to be reasonable in all respects, but if any such restriction shall be found to
be unenforceable but would be valid if any part of it were deleted or the period or area of
application reduced, the parties agree that such restriction shall apply with such modification as
may be necessary to make it valid and effective.

16. Intellectual Property

16.1 You hereby agree that all proprietary rights in any intellectual property, invention or patent
arising out of any work or project which may be assigned to you by the Company - either singly
or jointly with other employees of the Company - shall be vested in the Company absolutely.
Your only interest in any such rights will be as an employee of the Company and such interests
shall cease upon your resignation, dismissal or any other form of termination of your
employment effected either by you or the Company. In addition, you also agree to do all things
and execute all documents necessary or requested by the Company in order to ensure that all
intellectual property rights vest exclusively in the Company.

16.2 All intellectual property created by you in the course of working for the Company or otherwise
in connection with the business will be owned by the Company from the date of its creation.
You agree to do all things and if requested by the Company, execute any documents required to
vest the ownership of any of that intellectual property in the Company.

17. Miscellaneous

17.1 Authority to Contract. You acknowledge and agree that you do not have authority to enter into
any binding contracts or commitments for or on behalf of the Company without first obtaining
the prior written consent of the Company.

17.2 Entire Agreement and Amendment . This Employment Contract constitutes the entire
agreement between the parties and supersedes all prior understandings of the parties. The
Company reserves the rights to add, amend, withdraw or revise any or all of the above terms

Page 8 of 10
and conditions as and when it deems necessary.

17.3 Waiver. Neither party shall be deemed to have waived any provision of this Employment
Contract or the exercise of any rights held hereunder unless such waiver is made expressly and
in writing. Waiver by either party of a breach or violation of any provision hereof shall not
constitute a waiver of any subsequent or other breach or violation.

17.4 Further Assurances. At the request of the Company, you shall execute and deliver such other
documents and take such other actions as may be reasonably necessary to give effect the terms
of this Employment Contract.

17.5 Severability. If any provision of this Employment Contract is held to be invalid, illegal or
unenforceable in whole or in part, the remaining provisions shall not be affected and shall
continue to be valid, legal and enforceable as though the invalid, illegal or unenforceable parts
had not been included.

17.6 No Assignment. You shall not be entitled to transfer or otherwise assign this Employment
Contract or any of your rights and obligations hereunder.

17.7 Consent to Personal Data Transfer and Processing . You hereby acknowledge and consent to the
processing and transfer of your personal data (in manual, electronic or any other form) relevant
to your employment by the Company and/or any of its associated companies and/or
subsidiaries and/or any affiliates or third party nominated by the Company and bound by a duty
of confidentiality, within or outside Malaysia, from time to time for any purpose incidental to
your employment with the Company or for the Company’s business.

17.8 Governing Law and Jurisdiction. This Employment Contract shall be governed by, and construed
in accordance with, the laws of Malaysia, and the parties irrevocably submit to the jurisdiction
of the courts of Malaysia.

Please acknowledge your agreement to the terms and conditions above and acceptance of this offer of
employment by signing and returning a copy of this Employment Contract to us.

Yours sincerely,
for and behalf of
[INSERT COMPANY NAME]

[INSERT SIGNATORY’S NAME]


[INSERT DESIGNATION]

ACCEPTANCE

Page 9 of 10
I have read and fully understood the contents of this Employment Contract, and hereby accept and
confirm my agreement to the terms and conditions of employment outlined herein. I also specifically
agree not to disclose any confidential contents of this Employment Contract.

__________________________
Name: [Insert employee’s full name]
NRIC No: [Insert employee’s NRIC No.]
Date: [Insert date]

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