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Placement Agreement for Malaysia

Placement Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions between a recruitment agency and a client company for the provision of placement services. The document outlines the responsibilities of both parties, fee structures, placement guarantees, and compliance requirements with Malaysian employment legislation, including the Employment Act 1955 and Private Employment Agencies Act 1981. It details the recruitment process, candidate requirements, payment terms, and includes provisions for data protection compliance under the Personal Data Protection Act 2010.

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What is a Placement Agreement?

The Placement Agreement serves as a crucial legal framework for recruitment services in Malaysia, establishing the professional relationship between recruitment agencies and their client companies. This document is essential when companies seek to outsource their recruitment processes or engage professional assistance in talent acquisition. The agreement ensures compliance with Malaysian employment laws, including the Employment Act 1955 and Private Employment Agencies Act 1981, while protecting both parties' interests. It typically includes detailed terms regarding candidate sourcing, screening processes, fee structures, replacement guarantees, and confidentiality obligations. The Placement Agreement is particularly important in the Malaysian context where specific regulations govern recruitment practices and employment agency operations.

What sections should be included in a Placement Agreement?

1. Parties: Identification of the placement agency and the client company, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, including the agency's authority to provide placement services and the client's need for recruitment assistance

3. Definitions: Key terms used throughout the agreement, including 'Candidate', 'Placement', 'Fees', 'Successful Placement', etc.

4. Scope of Services: Detailed description of recruitment and placement services to be provided by the agency

5. Agency Obligations: The placement agency's responsibilities, including candidate screening, verification of qualifications, and compliance with employment laws

6. Client Obligations: The client company's responsibilities, including providing accurate job descriptions, timely feedback, and cooperation

7. Fees and Payment Terms: Structure of placement fees, payment schedule, and conditions for fee payment

8. Replacement Guarantee: Terms under which the agency will provide replacement candidates if initial placement fails within specified period

9. Confidentiality: Obligations regarding confidential information shared during the recruitment process

10. Data Protection: Compliance with Personal Data Protection Act 2010 and handling of candidate information

11. Term and Termination: Duration of the agreement and circumstances for termination

12. General Provisions: Standard legal clauses including governing law, notices, entire agreement, etc.

What sections are optional to include in a Placement Agreement?

1. International Recruitment: Include when services involve recruiting foreign workers, addressing immigration requirements and additional compliance obligations

2. Volume Discounts: Include when offering special fee structures for bulk placements

3. Executive Search: Include for agreements specifically focused on C-suite or senior management recruitment

4. Temporary Staffing: Include when the agreement covers both permanent and temporary staffing solutions

5. Industry-Specific Compliance: Include when placements are in regulated industries requiring specific certifications or compliance

6. Non-Solicitation: Include when there's a need to prevent direct hiring of agency staff

7. Service Level Agreement: Include when specific performance metrics and timeframes need to be established

8. Multi-location Services: Include when placement services cover multiple geographical locations or subsidiaries

What schedules should be included in a Placement Agreement?

1. Schedule 1: Fee Structure: Detailed breakdown of placement fees, including calculation methods and special rates

2. Schedule 2: Service Specifications: Detailed description of recruitment process, timelines, and deliverables

3. Schedule 3: Required Candidate Documentation: List of required documents and verifications for candidates

4. Schedule 4: Client Locations: List of client locations covered by the agreement

5. Appendix A: Standard Forms: Templates for job requisitions, candidate submissions, and placement confirmations

6. Appendix B: Compliance Checklist: Checklist of regulatory requirements and necessary documentation

7. Appendix C: KPI Metrics: Detailed performance indicators and measurement criteria

8. Appendix D: Interview Process: Agreed procedure for candidate interviews and selection

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 | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Technology

Manufacturing

Financial Services

Healthcare

Education

Construction

Oil and Gas

Retail

Professional Services

Telecommunications

Hospitality

Logistics

Banking

Insurance

Real Estate

Automotive

Relevant Teams

Human Resources

Legal

Procurement

Finance

Compliance

Operations

Talent Acquisition

Contract Management

Risk Management

Executive Leadership

Relevant Roles

HR Director

Talent Acquisition Manager

Recruitment Manager

Legal Counsel

HR Business Partner

Procurement Manager

Hiring Manager

Operations Director

HR Operations Manager

Compliance Officer

Contract Manager

Chief Human Resources Officer

Finance Director

General Counsel

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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