The Employment Letter is a fundamental document used in Malaysian employment relationships to formalize the offer of employment and establish clear terms between employer and employee. It serves as the primary document outlining the employment relationship's key aspects, including position, compensation, benefits, and working conditions, while ensuring compliance with Malaysian employment legislation, particularly the Employment Act 1955. This document is typically issued after successful recruitment negotiations and before the commencement of employment, requiring acknowledgment and acceptance by the prospective employee. The Employment Letter's content must reflect current Malaysian employment law requirements while being adaptable to various industries and employment levels, from entry-level positions to executive roles.
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1. Company Letterhead and Date: Official company letterhead with complete contact details and date of the letter
2. Employee Details: Full name and address of the employee
3. Position and Employment Status: Job title, employment status (permanent/temporary/contract), and reporting relationship
4. Commencement Date: Start date of employment and any probationary period details
5. Compensation and Benefits: Base salary, allowances, bonuses, and other monetary benefits
6. Working Hours and Location: Standard working hours, work location, and any flexibility arrangements
7. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements
8. Statutory Contributions: EPF, SOCSO, and EIS contributions
9. Termination Notice: Notice period requirements for both parties
10. Confidentiality: Basic confidentiality obligations
11. Acceptance Section: Space for employee acknowledgment and signature
1. Probationary Period Terms: Include when the position is subject to a probationary period, detailing duration and evaluation process
2. Medical Benefits: Include when offering additional medical coverage beyond statutory requirements
3. Stock Options/Share Schemes: Include for senior positions or when company offers equity compensation
4. Mobility Clause: Include when the role may require relocation or travel
5. Non-Competition: Include for senior positions or roles with access to sensitive information
6. Foreign Worker Provisions: Include when employing non-Malaysian citizens, addressing work permit requirements
7. Commission Structure: Include for sales positions or roles with variable compensation
8. Flexible Working Arrangements: Include when offering remote work or flexible hours options
1. Job Description: Detailed outline of roles, responsibilities, and key performance indicators
2. Benefits Schedule: Detailed breakdown of all benefits and eligibility criteria
3. Company Policies: Key company policies that form part of employment terms
4. Bonus Scheme Details: Detailed explanation of bonus calculation and payment terms
5. Code of Conduct: Company's code of conduct and ethical guidelines
6. IT and Systems Usage Policy: Guidelines for use of company IT systems and equipment
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