The Employment Service Contract serves as the primary document governing the employer-employee relationship in Malaysia, ensuring compliance with local employment laws including the Employment Act 1955, Industrial Relations Act 1967, and other relevant legislation. This contract type is essential for any formal employment arrangement in Malaysia, whether for permanent, fixed-term, or contractual positions. It should be used when hiring new employees or updating terms for existing staff, containing comprehensive details about employment terms, benefits, obligations, and termination procedures. The document must reflect current Malaysian employment law requirements while accommodating industry-specific needs and company policies. Special attention should be paid to mandatory provisions regarding working hours, leave entitlements, and statutory benefits as required by Malaysian law.
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1. Parties: Identification of the employer and employee with complete details
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Appointment and Duration: Position title, employment status (permanent/fixed-term), and commencement date
5. Duties and Responsibilities: Main job responsibilities and reporting structure
6. Place of Work: Primary workplace location and any mobility requirements
7. Hours of Work: Standard working hours, rest days, and overtime provisions
8. Remuneration and Benefits: Salary, allowances, bonuses, and statutory benefits
9. Leave Entitlements: Annual, medical, maternity/paternity, and other leave types
10. Medical Benefits: Healthcare coverage and medical examination requirements
11. Confidentiality: Protection of company confidential information
12. Intellectual Property: Ownership of work products and innovations
13. Termination: Notice periods and grounds for termination
14. Post-Employment Obligations: Return of company property and ongoing confidentiality obligations
15. Governing Law: Application of Malaysian law and jurisdiction
1. Probation Period: Terms of probationary period - used for new employees
2. Non-Competition: Post-employment competition restrictions - used for senior positions
3. Non-Solicitation: Restrictions on soliciting employees/clients - used for client-facing roles
4. Mobility Clause: Requirements for travel/relocation - used when job requires mobility
5. Commission Structure: Details of commission-based compensation - used for sales roles
6. Remote Work Provisions: Terms for remote working arrangements - used for hybrid/remote positions
7. Share Options/Awards: Terms of any share-based compensation - used for senior executives
8. Training Requirements: Mandatory training and development - used for regulated roles
9. Language Requirements: Language proficiency requirements - used for multinational companies
1. Schedule 1 - Job Description: Detailed breakdown of job duties and responsibilities
2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits
3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms
4. Schedule 4 - Performance Metrics: KPIs and performance evaluation criteria
5. Schedule 5 - Statutory Benefits: Details of EPF, SOCSO, and other statutory contributions
6. Appendix A - Code of Conduct: Company's code of conduct and ethical standards
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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