This Outsourced Employee Contract is designed for use in Malaysia when engaging employees through an outsourcing arrangement where the employee will work at or for a client company while being employed by an outsourcing service provider. The document complies with Malaysian employment law, including the Employment Act 1955 and related legislation, and is particularly relevant in situations where companies seek to maintain workforce flexibility or access specialized talent through third-party employment arrangements. It covers crucial aspects such as dual reporting structures, confidentiality obligations to both companies, performance management processes, and clear delineation of responsibilities between the outsourcing company and client company. The contract is structured to protect all parties' interests while ensuring transparency in employment terms and conditions.
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1. Parties: Identifies the three main parties: the outsourcing company (employer), the client company, and the employee
2. Background: Explains the context of the outsourcing arrangement and the purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Term of Employment: Specifies the duration of employment, including start date and whether fixed-term or permanent
5. Job Description and Duties: Details the employee's role, responsibilities, and reporting structure
6. Place of Work: Specifies the primary workplace location and any flexibility arrangements
7. Working Hours: Details standard working hours, overtime provisions, and rest periods in compliance with Malaysian law
8. Remuneration and Benefits: Specifies salary, allowances, statutory contributions, and other benefits
9. Leave Entitlements: Details various types of leave including annual, medical, and other statutory leave
10. Reporting Structure: Clarifies dual reporting relationships between client company and outsourcing company
11. Confidentiality: Protects confidential information of both the outsourcing and client companies
12. Intellectual Property: Addresses ownership of work product and intellectual property created during employment
13. Performance Management: Outlines performance review process and consequences of poor performance
14. Termination: Details grounds and procedures for contract termination
15. Post-Termination Obligations: Specifies obligations that survive after employment ends
1. Mobility Clause: Include when the role may require travel or relocation between client sites
2. Training Requirements: Include when specific training or certifications are required for the role
3. Commission Structure: Include for sales or performance-based roles with variable compensation
4. Non-Competition: Include when protecting against competition is crucial, noting enforceability limits in Malaysia
5. Remote Working Provisions: Include when remote work arrangements are permitted
6. Secondment Terms: Include when employee may be seconded to different client locations
7. Language Requirements: Include when proficiency in specific languages is essential for the role
1. Schedule 1 - Detailed Job Description: Comprehensive description of role, responsibilities, and performance expectations
2. Schedule 2 - Compensation and Benefits Structure: Detailed breakdown of salary components, benefits, and payment terms
3. Schedule 3 - Client Company Policies: Relevant policies and procedures of the client company that apply to the employee
4. Schedule 4 - Outsourcing Company Policies: Internal policies and procedures of the outsourcing company
5. Schedule 5 - Performance Metrics: Specific KPIs and performance measurement criteria
6. Appendix A - Statutory Benefits Summary: Summary of all statutory benefits under Malaysian law
7. Appendix B - Confidentiality Agreement: Detailed confidentiality provisions and requirements
8. Appendix C - Employee Code of Conduct: Combined code of conduct incorporating both companies' requirements
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