General Overview of Employment Contracts in Malaysia
Here's a general overview of employment contracts in Malaysia:
Importance and Legality:
Employment contracts are crucial legal documents outlining the terms and conditions of employment in Malaysia.
They establish rights and responsibilities for both employers and employees.
The Employment Act 1955 (EA) governs employment matters, and a well-drafted contract ensures compliance with the law.
Types of Contracts:
Written contracts are recommended for all employment exceeding one month.
Verbal contracts are also valid but can be difficult to enforce in disputes.
Two main types of contracts are used:
Open-ended (permanent) contracts - Most common type.
Fixed-term (temporary) contracts - Less common, but used for specific projects.
Key Elements of a Contract:
Typically include details like:
Job role and responsibilities
Remuneration (salary, allowances) and payment schedule
Benefits (medical, leave entitlements)
Working hours and overtime pay
Probation period (if applicable)
Termination clauses (notice periods, severance pay)
Additional Points:
Contracts should be clear and concise, ideally in both English and Malay.
Employers must retain contracts for at least six years after their conclusion.
Employment contracts cannot restrict an employee's right to join a trade union.
Further Resources:
For more in-depth information, consider searching for these resources:
"Employment Act 1955 (Malaysia)"
"Malaysia Ministry of Human Resources - Standard Employment Contract"