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Full Time Employment Contract Template for Malaysia

A comprehensive employment agreement compliant with Malaysian employment law, particularly the Employment Act 1955 and related legislation. This document establishes the formal employment relationship between an employer and a full-time employee, detailing all essential terms and conditions including compensation, benefits, duties, working hours, leave entitlements, and other employment terms as required under Malaysian law. The contract incorporates mandatory provisions for employee protection while allowing flexibility for company-specific policies and requirements.

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What is a Full Time Employment Contract?

This Full Time Employment Contract is designed for use by Malaysian companies or organizations operating in Malaysia when hiring permanent, full-time employees. The document ensures compliance with Malaysian employment legislation, including the Employment Act 1955, Employees Provident Fund Act 1991, and other relevant laws. It should be used when establishing new employment relationships or updating existing employment terms to current legal standards. The contract includes mandatory provisions regarding working hours, leave entitlements, statutory benefits, and termination procedures, while also addressing modern employment considerations such as data protection and intellectual property rights. It serves as a foundational document for establishing clear, legally compliant employment relationships in the Malaysian context.

What sections should be included in a Full Time Employment Contract?

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

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

3. Definitions: Key terms used throughout the agreement

4. Appointment and Duration: Job title, employment status, and commencement date

5. Probation Period: Length and terms of the probationary period

6. Duties and Responsibilities: Main job responsibilities and reporting structure

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

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

9. Leave Entitlements: Annual, medical, and other statutory leave provisions

10. Medical Benefits: Healthcare coverage and medical examination requirements

11. Statutory Contributions: EPF, SOCSO, and EIS contributions

12. Confidentiality: Protection of company confidential information

13. Intellectual Property: Ownership of work products and innovations

14. Termination: Notice periods and grounds for termination

15. Company Policies: Compliance with company policies and procedures

16. Governing Law: Application of Malaysian law and jurisdiction

What sections are optional to include in a Full Time Employment Contract?

1. Mobility Clause: Required if employee may need to relocate or travel for work

2. Non-Competition: Include for senior positions or roles with access to sensitive information

3. Non-Solicitation: Include for client-facing roles or management positions

4. Commission Structure: Include for sales positions or roles with variable compensation

5. Remote Working: Include if remote work arrangements are permitted

6. Stock Options: Include if employee is eligible for company share schemes

7. International Assignment: Include for expatriate employees or cross-border work

8. Training Bond: Include if company provides substantial training investment

9. Performance Bonus: Include if role includes performance-based incentives

10. Garden Leave: Include for senior executives or sensitive positions

What schedules should be included in a Full Time Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and KPIs

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

3. Schedule 3 - Company Policies: Key company policies and procedures referenced in contract

4. Schedule 4 - Confidential Information: Definition and examples of confidential information

5. Schedule 5 - Benefits Summary: Detailed description of all employee benefits

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

7. Appendix B - IT Policies: IT usage policies and security requirements

8. Appendix C - Leave Policies: Detailed leave application and management procedures

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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