All Countries
Procurement
Independent Subcontractor Agreement

Independent Subcontractor Agreement Template for Malaysia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Independent Subcontractor Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Independent Subcontractor Agreement

"I need an Independent Subcontractor Agreement for a Malaysian IT consulting firm engaging software developers, with strong IP protection clauses and the ability to work remotely from anywhere in Malaysia, starting March 2025."

Celebrated by
Collaborations with
Investors
Document background
The Independent Subcontractor Agreement is essential for businesses operating in Malaysia that engage external service providers for specific projects or ongoing services. This document is designed to comply with Malaysian law, particularly the Contracts Act 1950 and related legislation, while clearly establishing a non-employment relationship. It's commonly used when companies need specialized skills, temporary assistance, or project-based work without creating an employer-employee relationship. The agreement covers critical aspects including service scope, payment terms, intellectual property rights, confidentiality, and liability provisions, while incorporating necessary safeguards to maintain the independent nature of the relationship and avoid potential misclassification issues under Malaysian employment law.
Suggested Sections

1. Parties: Identifies and provides full details of the contracting parties - the company and the independent subcontractor

2. Background: Outlines the context of the agreement and the parties' intention to enter into an independent contractor relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Scope of Services: Detailed description of the services to be provided by the subcontractor

5. Term and Termination: Specifies the duration of the agreement and conditions for termination by either party

6. Compensation and Payment Terms: Details the payment structure, rates, invoicing process, and payment schedule

7. Independent Contractor Status: Explicitly establishes the relationship as independent contracting, not employment

8. Obligations of the Subcontractor: Lists the specific duties, responsibilities, and standards expected from the subcontractor

9. Obligations of the Company: Outlines the company's responsibilities and commitments

10. Intellectual Property Rights: Addresses ownership and rights to work product created during the engagement

11. Confidentiality: Provisions for protecting confidential information and trade secrets

12. Representations and Warranties: Statements of fact and promises made by both parties

13. Indemnification: Provisions for compensation in case of losses or damages

14. Insurance: Required insurance coverage to be maintained by the subcontractor

15. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and sets jurisdiction for disputes

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Non-Compete: Restrictions on working with competitors - include when protecting market position is crucial

2. Non-Solicitation: Prevents poaching of clients/employees - use when subcontractor has access to sensitive relationships

3. Equipment and Resources: Details about provision of tools and resources - include when specific equipment arrangements exist

4. Performance Metrics: Specific KPIs and performance standards - use for measurable deliverable-based contracts

5. Compliance with Specific Regulations: Industry-specific compliance requirements - include for regulated industries

6. Subcontracting: Rules about further subcontracting work - include when need to control delegation

7. Force Majeure: Provisions for unforeseen circumstances - important for long-term or high-value contracts

8. Data Protection: Specific data handling requirements - include when personal data processing is involved

9. Training Requirements: Specific training or certification needs - use when special qualifications are required

10. Dispute Resolution: Alternative dispute resolution procedures - include for high-value or complex relationships

Suggested Schedules

1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and specifications

2. Schedule B - Fee Schedule: Detailed pricing, payment terms, and any variable compensation structures

3. Schedule C - Service Levels: Specific performance metrics, quality standards, and response times

4. Schedule D - Company Policies: Relevant company policies the subcontractor must comply with

5. Schedule E - Equipment List: List of any company-provided equipment or resources

6. Appendix 1 - Contact Details: Key contact information for both parties

7. Appendix 2 - Required Insurance Coverage: Specific insurance types and coverage amounts required

8. Appendix 3 - Compliance Requirements: Industry-specific compliance requirements and certifications

9. Appendix 4 - Confidential Information: Specific details about what constitutes confidential information

10. Appendix 5 - Approved Subcontractors: List of pre-approved subcontractors if further subcontracting is allowed

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Information Technology

Construction

Professional Services

Consulting

Digital Marketing

Engineering

Healthcare

Education

Creative Industries

Manufacturing

Telecommunications

Financial Services

Real Estate

Research and Development

Media and Entertainment

Relevant Teams

Legal

Human Resources

Procurement

Operations

Finance

Compliance

Risk Management

Project Management Office

Business Development

Administration

Relevant Roles

Project Manager

HR Director

Legal Counsel

Procurement Manager

Operations Director

Finance Manager

Department Head

Contract Administrator

Business Unit Manager

Compliance Officer

Risk Manager

Chief Executive Officer

Chief Operating Officer

Managing Director

Technical Director

Industries
Contracts Act 1950: Primary legislation governing contract formation, validity, and enforcement in Malaysia. Essential for ensuring the subcontractor agreement meets basic requirements for a valid contract.
Employment Act 1955: While this act primarily covers employees, it's crucial to review to ensure the subcontractor agreement clearly establishes an independent contractor relationship and doesn't inadvertently create an employment relationship.
Income Tax Act 1967: Covers taxation requirements for independent contractors, including obligations for tax reporting and payment structures.
Employees Provident Fund Act 1991: Important for clearly establishing that independent contractors are not entitled to EPF contributions, distinguishing them from regular employees.
Personal Data Protection Act 2010: Relevant for handling personal data and ensuring compliance with data protection requirements in the contractor relationship.
Digital Signature Act 1997: Applicable if the agreement will be executed electronically, ensuring legal validity of digital signatures.
Copyright Act 1987: Important for protecting intellectual property rights and establishing ownership of work created during the contract period.
Competition Act 2010: Relevant for ensuring any non-compete or exclusivity clauses don't violate competition laws.
Sales Tax Act 2018: Relevant for understanding sales tax obligations if the independent contractor provides taxable services.
Service Tax Act 2018: Applicable if the independent contractor provides services that fall under the service tax regime.
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

Find the exact document you need

Subcontractor Offer Letter

A Malaysian-compliant offer letter establishing terms and conditions for subcontractor engagement in commercial projects.

find out more

Contractor Subcontractor Agreement

A Malaysian law-governed agreement between contractor and subcontractor defining construction project responsibilities, payments, and obligations.

find out more

Subcontract Agreement For Construction Work

Malaysian law-governed agreement between main contractor and subcontractor for specified construction works, incorporating CIDB and CIPAA requirements.

find out more

Painting Subcontractor Agreement

A Malaysian law-governed agreement between a main contractor and painting subcontractor defining terms for painting works execution and compliance with CIDB regulations.

find out more

Nominated Subcontractor Agreement

Malaysian law-governed agreement between main contractor and nominated subcontractor for specialized construction works, including scope, payments, and obligations.

find out more

Security Subcontractor Agreement

A Malaysian law-governed agreement between a primary security provider and subcontractor for the provision of security services, ensuring regulatory compliance and operational standards.

find out more

Independent Subcontractor Agreement

Malaysian-law governed agreement establishing and regulating an independent contractor relationship between a company and service provider.

find out more

Independent Contractor Subcontractor Agreement

Malaysian-compliant Independent Contractor Subcontractor Agreement establishing terms for subcontractor engagement under Malaysian law.

find out more

Non Disclosure Agreement For Subcontractor

Malaysian-law governed NDA for protecting confidential information in subcontractor relationships, incorporating local legal requirements and business practices.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.