External Consultant Agreement Template for Malaysia

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Key Requirements PROMPT example:

External Consultant Agreement

"I need an External Consultant Agreement for a technology consultant who will be developing custom software solutions for our Malaysian fintech startup, with strong IP protection clauses and the agreement to start from January 2025."

Document background
The External Consultant Agreement is essential for Malaysian businesses engaging professional services from independent contractors or consulting firms. This document is crucial when companies require specialized expertise or temporary professional services without creating an employer-employee relationship. It addresses key aspects required under Malaysian law, including clear delineation of independent contractor status, intellectual property rights under the Copyright Act 1987, data protection under PDPA 2010, and tax considerations under the Income Tax Act 1967. The agreement is structured to protect both parties' interests while ensuring compliance with Malaysian regulatory requirements, making it suitable for various consulting arrangements from short-term projects to ongoing advisory services.
Suggested Sections

1. Parties: Identification of the company and consultant, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

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

4. Appointment and Scope: Terms of consultant's appointment and detailed scope of services

5. Term and Termination: Duration of agreement, renewal terms, and termination provisions

6. Consultant's Obligations: Key responsibilities, deliverables, and performance standards

7. Company's Obligations: Company's responsibilities, including provision of information and resources

8. Fees and Payment: Compensation structure, payment terms, expenses, and invoicing procedures

9. Intellectual Property Rights: Ownership and rights to work products, pre-existing IP, and related matters

10. Confidentiality: Protection of confidential information and trade secrets

11. Independent Contractor Status: Clear statement of consultant's independent status and not an employee

12. Liability and Indemnification: Limitation of liability and indemnification obligations

13. General Provisions: Standard clauses including notices, amendments, governing law, etc.

Optional Sections

1. Non-Compete: Restrictions on competing activities - include when protecting market position is crucial

2. Data Protection: Specific PDPA compliance obligations - include when personal data processing is involved

3. Insurance: Insurance requirements - include for high-risk services or when required by industry standards

4. Force Majeure: Provisions for unforeseen circumstances - include when service continuity is critical

5. Anti-Corruption: Specific anti-corruption provisions - include when dealing with government or high-risk sectors

6. Assignment and Subcontracting: Rights to assign or subcontract - include when flexibility in service delivery is needed

7. Dispute Resolution: Detailed dispute resolution procedures - include for high-value or complex engagements

8. Performance Metrics: Specific KPIs and performance standards - include when quantifiable outcomes are required

Suggested Schedules

1. Schedule 1: Scope of Services: Detailed description of services, deliverables, and timelines

2. Schedule 2: Fee Schedule: Detailed breakdown of fees, rates, and payment milestones

3. Schedule 3: Key Personnel: List of key consultant personnel assigned to the project

4. Schedule 4: Service Levels: Specific service level agreements and performance metrics

5. Schedule 5: Company Policies: Relevant company policies consultant must comply with

6. Appendix A: Report Templates: Standard templates for progress reports and deliverables

7. Appendix B: Compliance Requirements: Industry-specific compliance requirements and certifications

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

Relevant Industries

Technology

Financial Services

Manufacturing

Healthcare

Education

Professional Services

Energy

Telecommunications

Construction

Real Estate

Retail

Hospitality

Mining

Agriculture

Media and Entertainment

Relevant Teams

Legal

Procurement

Human Resources

Finance

Operations

Compliance

Risk Management

Project Management Office

Business Development

Contracts Administration

Relevant Roles

Legal Counsel

Procurement Manager

Human Resources Director

Project Manager

Chief Financial Officer

Operations Director

Compliance Officer

Department Head

Business Unit Manager

Contract Administrator

Risk Manager

Chief Executive Officer

Technical Director

Management Consultant

Independent Professional

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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