The Individual Employment Agreement serves as the primary contractual document establishing an employment relationship in Malaysia. It is essential for any formal employment arrangement and must comply with the Employment Act 1955, Minimum Wages Order 2022, and other relevant Malaysian employment legislation. This document is typically used when hiring new employees, converting temporary staff to permanent positions, or updating employment terms. It contains all mandatory employment terms required by Malaysian law, including working hours, leave entitlements, benefits, and termination provisions, while also allowing for customization based on the specific role, industry requirements, and company policies. The agreement provides legal protection for both employer and employee by clearly defining rights, responsibilities, and expectations within the employment relationship.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Job title, employment status (permanent/fixed-term), and commencement date
5. Duties and Responsibilities: Main responsibilities, reporting relationships, and performance expectations
6. Place of Work: Primary workplace location and any mobility requirements
7. Hours of Work: Standard working hours, rest days, and overtime arrangements
8. Remuneration: Salary, payment intervals, deductions, and review process
9. Benefits: Statutory and additional benefits including medical, insurance, and allowances
10. Leave Entitlements: Annual, sick, maternity/paternity, and other types of leave
11. Probation: Probationary period duration and conditions
12. Termination: Notice periods, grounds for termination, and procedures
13. Confidentiality: Protection of company confidential information
14. Intellectual Property: Ownership of work created during employment
15. Data Protection: Handling of personal data under PDPA 2010
16. Governing Law: Application of Malaysian law and jurisdiction
1. Non-Competition: Restrictions on working for competitors, typically for senior positions
2. Non-Solicitation: Restrictions on soliciting employees/clients, used for client-facing roles
3. Commission Structure: For sales or commission-based roles
4. Flexible Working: For roles with remote work or flexible arrangements
5. International Travel: For roles requiring frequent international travel
6. Stock Options: For senior executives or when company offers share schemes
7. Training Requirements: For roles requiring specific ongoing training or certifications
8. Language Requirements: For roles requiring specific language proficiencies
9. Vehicle Allowance: For roles requiring personal vehicle use
10. Relocation Terms: For employees requiring relocation
1. Schedule 1 - Job Description: Detailed outline of role responsibilities and requirements
2. Schedule 2 - Compensation Details: Breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of employment terms
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Schedule 5 - Benefits Summary: Detailed description of all benefits and eligibility conditions
6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - IT Policy: Guidelines for use of company IT resources
8. Appendix C - Expense Policy: Rules and procedures for business expense claims
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