Contract Hire Agreement Template for Malaysia

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Key Requirements PROMPT example:

Contract Hire Agreement

"I need a Contract Hire Agreement for a senior software engineer in Malaysia who will be working remotely from Kuala Lumpur, with a start date of March 1, 2025, including confidentiality and IP protection clauses, plus special provisions for stock options."

Document background

The Contract Hire Agreement serves as the primary document establishing an employment relationship in Malaysia, designed to comply with local employment laws while protecting both employer and employee interests. This agreement is essential when hiring permanent employees in Malaysia and must align with the Employment Act 1955, Industrial Relations Act 1967, and other relevant Malaysian legislation. The document typically includes comprehensive terms covering employment conditions, compensation, benefits, and obligations of both parties. It's particularly important in the Malaysian context where employment relationships are highly regulated and require clear documentation of terms to ensure legal compliance and avoid potential disputes.

Suggested Sections

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

2. Background: Brief context of the hiring arrangement and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Details of the position, employment status, and duration of employment

5. Duties and Responsibilities: Outline of the employee's role, reporting structure, and key responsibilities

6. Place of Work: Specification of work location and any mobility requirements

7. Hours of Work: Standard working hours, overtime provisions, and rest periods

8. Remuneration: Base salary, payment schedule, and any guaranteed bonuses or allowances

9. Benefits: Statutory and additional benefits including leave entitlements, medical benefits, and insurance coverage

10. Probation Period: Duration and terms of the probationary period, if applicable

11. Termination: Notice periods and grounds for termination by either party

12. Confidentiality: Protection of company confidential information and trade secrets

13. Governing Law: Specification of Malaysian law as governing law and jurisdiction

14. Entire Agreement: Standard clause confirming the agreement represents the entire understanding between parties

Optional Sections

1. Non-Competition: Restrictions on working for competitors, used for senior positions or roles with access to sensitive information

2. Intellectual Property Rights: Assignment of IP rights, necessary for creative or technical roles

3. Remote Working: Terms for working from home or remote locations, if applicable

4. Commission Structure: Details of commission-based compensation, relevant for sales roles

5. International Travel: Terms for international travel and related allowances, for roles requiring travel

6. Training Requirements: Mandatory training commitments and associated bonds, if applicable

7. Stock Options: Employee stock option plans or share schemes, typically for senior executives

8. Secondment Terms: Terms for potential secondment to other offices or affiliated companies

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of the role, responsibilities, and performance expectations

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

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Performance Metrics: Specific KPIs and performance evaluation criteria

5. Appendix A - Employee Code of Conduct: Standard company code of conduct and ethical guidelines

6. Appendix B - Benefit Plans: Detailed description of applicable benefit plans and eligibility criteria

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Technology
Manufacturing
Financial Services
Professional Services
Retail
Healthcare
Education
Construction
Hospitality
Telecommunications
Energy
Transportation
Agriculture
Mining
Media and Entertainment

Relevant Teams

Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Customer Service
Production
Quality Assurance
Administration
Business Development
Corporate Strategy

Relevant Roles

Chief Executive Officer
Managing Director
Department Manager
Senior Executive
Software Engineer
Financial Analyst
Human Resources Manager
Sales Representative
Operations Manager
Project Manager
Administrative Assistant
Marketing Specialist
Research Analyst
Technical Support Specialist
Account Manager
Production Supervisor
Quality Control Inspector
Customer Service Representative

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Authors

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