Intercompany Employee Transfer Agreement Template for Malaysia

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Key Requirements PROMPT example:

Intercompany Employee Transfer Agreement

"I need an Intercompany Employee Transfer Agreement for transferring a senior software engineer from our KL headquarters to our subsidiary in Penang for a renewable 12-month period starting March 2025, with specific provisions for intellectual property protection and remote work arrangements."

Document background
The Intercompany Employee Transfer Agreement is essential for organizations operating multiple entities within Malaysia or managing international assignments with a Malaysian presence. This document is utilized when companies need to temporarily transfer employees between related entities while maintaining clear employment relationships and ensuring compliance with Malaysian regulations. It becomes particularly relevant during organizational restructuring, special projects, or knowledge transfer initiatives. The agreement must comply with Malaysian employment law, including the Employment Act 1955, Immigration Act 1959/63, and relevant tax legislation. It typically covers duration, roles, responsibilities, compensation structures, benefits, and administrative arrangements for the transfer period.
Suggested Sections

1. Parties: Identifies the home company, host company, and the transferring employee

2. Background: Explains the context of the transfer and relationship between the companies

3. Definitions: Defines key terms used throughout the agreement

4. Term and Duration: Specifies the duration of the transfer and any extension provisions

5. Employment Status: Clarifies the employee's relationship with both companies during the transfer

6. Duties and Responsibilities: Outlines the employee's role and responsibilities in the host company

7. Compensation and Benefits: Details salary, benefits, and which company is responsible for each component

8. Immigration and Work Permits: Addresses visa requirements and responsibilities for obtaining necessary permits

9. Tax and Social Security: Specifies tax obligations and social security arrangements

10. Confidentiality: Protects confidential information of both companies

11. Data Protection: Ensures compliance with data protection laws for employee information

12. Termination: Sets out circumstances and procedures for early termination

13. Governing Law: Specifies Malaysian law as governing law and jurisdiction

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Intellectual Property: Required when the employee will be creating IP or handling sensitive technical information

2. Non-Competition: Include when there are specific competitive concerns or industry-sensitive information

3. Training and Development: Required when specific training or development programs are part of the transfer

4. Performance Management: Include when specific performance metrics or review processes need to be established

5. Repatriation: Required for international transfers or when specific return conditions need to be outlined

6. Force Majeure: Include when specific events might affect the transfer arrangement

7. Cost Allocation: Required when there's complex cost sharing between companies

Suggested Schedules

1. Schedule 1 - Position Description: Detailed description of the employee's role and responsibilities

2. Schedule 2 - Compensation and Benefits Package: Comprehensive breakdown of all compensation elements and benefits

3. Schedule 3 - Transfer Timeline: Detailed timeline for the transfer process and key milestones

4. Schedule 4 - Company Policies: List of applicable policies from both companies

5. Appendix A - Required Documentation: List of necessary documents for immigration and employment purposes

6. Appendix B - Contact Details: Key contact persons in both companies for various aspects of the transfer

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

Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Professional Services

Oil and Gas

Healthcare

Telecommunications

Construction

Education

Retail and Consumer Goods

Logistics and Transportation

Banking

Relevant Teams

Human Resources

Legal

Compliance

Global Mobility

Tax

Finance

Operations

Talent Management

Relevant Roles

HR Director

Legal Counsel

HR Manager

Compliance Officer

Global Mobility Manager

Tax Manager

Immigration Specialist

Employment Law Specialist

Compensation and Benefits Manager

Talent Management Director

Project Manager

Department Head

Operations Director

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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