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Continuous Employment New Contract for Malaysia

Continuous Employment New Contract Template for Malaysia

This is a comprehensive employment contract template designed for use in Malaysia, compliant with the Employment Act 1955 and related Malaysian employment legislation. The contract establishes a continuous employment relationship between employer and employee, setting out clear terms and conditions including remuneration, benefits, working hours, leave entitlements, and other statutory requirements under Malaysian law. It includes provisions for confidentiality, intellectual property protection, and termination procedures, while ensuring all mandatory employee protections under Malaysian employment regulations are properly addressed.

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What is a Continuous Employment New Contract?

This Continuous Employment New Contract template is designed for establishing permanent employment relationships in Malaysia. It should be used when hiring new permanent employees or converting fixed-term contracts to permanent positions, ensuring compliance with the Employment Act 1955 and other relevant Malaysian legislation. The document incorporates all necessary elements required by Malaysian law, including statutory benefits, working hours, leave entitlements, and termination provisions. It is structured to protect both employer and employee interests while maintaining flexibility for customization based on specific role requirements and company policies. The contract template includes comprehensive sections on confidentiality, intellectual property rights, and post-employment obligations, making it suitable for various levels of employment from entry-level to senior management positions.

What sections should be included in a Continuous Employment New Contract?

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

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Position, employment status, and commencement date

5. Duties and Responsibilities: Main job duties, reporting lines, and work expectations

6. Place of Work: Primary workplace location and potential for relocation

7. Hours of Work: Standard working hours, rest periods, and overtime provisions

8. Remuneration and Benefits: Salary, allowances, bonuses, and statutory benefits

9. Leave Entitlements: Annual, medical, maternity/paternity, and other leave types

10. Medical Benefits: Healthcare coverage and medical examination requirements

11. Confidentiality: Protection of company information and trade secrets

12. Intellectual Property: Ownership of work products and innovations

13. Termination: Notice periods and grounds for termination

14. Post-Employment Obligations: Return of company property and continuing obligations

15. Governing Law: Application of Malaysian law and jurisdiction

What sections are optional to include in a Continuous Employment New Contract?

1. Probation Period: Terms of initial probationary period, if applicable

2. Non-Competition: Post-employment restrictions on working with competitors

3. Non-Solicitation: Restrictions on soliciting employees or customers after employment

4. Mobility Clause: Requirements for potential relocation or travel

5. Commission Structure: Details of commission-based compensation for sales roles

6. Remote Work Provisions: Terms for working from home or remote locations

7. Performance Bonus: Structure and conditions for performance-based incentives

8. Share Options: Employee share option scheme participation details

9. Training Requirements: Mandatory training and professional development obligations

10. Vehicle Allowance: Terms for company vehicle or transport allowance

What schedules should be included in a Continuous Employment New Contract?

1. Schedule 1 - Job Description: Detailed breakdown of role responsibilities and requirements

2. Schedule 2 - Compensation Details: Detailed breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Key company policies incorporated into the contract

4. Schedule 4 - Benefit Plans: Details of insurance, medical, and other benefit schemes

5. Schedule 5 - Performance Metrics: KPIs and performance evaluation criteria

6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

7. Appendix B - Confidential Information: Definition and examples of confidential information

8. Appendix C - IT Policy: Rules for use of company IT systems and equipment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use

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