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Oral Contract Of Employment for Malaysia

Oral Contract Of Employment Template for Malaysia

A document recording the terms and conditions of an oral employment agreement under Malaysian law, compliant with the Employment Act 1955 and related legislation. This document serves as written evidence of the verbally agreed terms between an employer and employee, covering essential employment terms such as job responsibilities, compensation, working hours, leave entitlements, and statutory benefits. While the primary agreement is verbal, this written record helps ensure clarity and compliance with Malaysian employment regulations, providing both parties with a reference point for the agreed terms and conditions.

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What is a Oral Contract Of Employment?

The Oral Contract Of Employment document template is designed for use in the Malaysian employment context where terms have been agreed verbally between employer and employee. While Malaysian law recognizes oral employment contracts as legally binding, having a written record of the agreed terms is crucial for clarity and compliance purposes. This document should be used to record the essential terms of employment immediately after verbal agreement, including details about the position, compensation, working hours, and other conditions of employment. It serves as evidence of the employment relationship and helps ensure compliance with Malaysian employment laws, including the Employment Act 1955, Industrial Relations Act 1967, and other relevant legislation. This documentation is particularly important for protecting both parties' interests and avoiding potential disputes about the agreed terms.

What sections should be included in a Oral Contract Of Employment?

1. Parties: Identification of the employer and employee with full legal names and addresses

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

3. Definitions: Key terms used in the document for clarity and legal certainty

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement Date: Start date of employment and any probationary period

6. Remuneration: Base salary, payment frequency, and method of payment

7. Working Hours: Standard working hours, rest days, and overtime arrangements

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

9. Statutory Contributions: EPF, SOCSO, and other mandatory contributions

10. Termination: Notice periods and conditions for termination of employment

11. Governing Law: Confirmation that the agreement is governed by Malaysian law

What sections are optional to include in a Oral Contract Of Employment?

1. Benefits and Allowances: Additional compensation elements beyond basic salary, used when offering non-standard benefits

2. Confidentiality: Provisions for protecting company information, used for roles with access to sensitive data

3. Non-Competition: Restrictions on working for competitors, used for senior positions or specialized roles

4. Mobility Clause: Requirements to work at different locations, used when job may require relocation

5. Commission Structure: Details of sales or performance-based compensation, used for sales or commission-based roles

6. Flexible Working: Arrangements for remote work or flexible hours, used when offering non-standard working arrangements

7. Training Requirements: Mandatory training or professional development obligations, used for regulated professions or specialized roles

What schedules should be included in a Oral Contract Of Employment?

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

2. Schedule 2 - Compensation Details: Breakdown of salary components, allowances, and benefits

3. Schedule 3 - Company Policies: Reference to applicable workplace policies and procedures

4. Appendix A - Statutory Benefits Summary: Summary of all statutory benefits and contributions under Malaysian law

5. Appendix B - Performance Metrics: Key performance indicators and evaluation criteria

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
Relevant legal definitions


















Clauses
























Relevant Industries

Manufacturing

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Human Resources

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Relevant Roles

General Manager

Operations Manager

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Sales Representative

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Supervisor

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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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