Document background
The Employment Memorandum of Understanding is commonly used in Malaysian business practice as a preliminary step in the employment process, particularly for senior positions or complex employment arrangements. This document is utilized when parties wish to establish a clear understanding of the proposed employment terms before proceeding with a formal employment contract. The MOU typically outlines key aspects such as job responsibilities, compensation structure, and basic employment terms while ensuring compliance with Malaysian employment laws. While most provisions of an Employment MOU are non-binding, certain clauses such as confidentiality may be explicitly made binding. The document serves as a useful tool for both employers and potential employees to document their preliminary agreements and expectations, reducing the potential for misunderstanding during the final contract negotiation phase.
