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Forced Arbitration Agreement Template for Malaysia

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Key Requirements PROMPT example:

Forced Arbitration Agreement

"I need a Forced Arbitration Agreement governed by Malaysian law for use in employment contracts with our technology company's new hires starting January 2025, with specific provisions for handling intellectual property disputes."

Document background
The Forced Arbitration Agreement serves as a crucial legal instrument in Malaysian business and employment relationships, requiring parties to resolve disputes through arbitration instead of court litigation. This document is typically implemented at the outset of a business or employment relationship, or when updating existing dispute resolution procedures. It draws authority from the Malaysian Arbitration Act 2005 and related legislation, providing a comprehensive framework for dispute resolution that is generally more efficient and confidential than court proceedings. The agreement includes essential elements such as the scope of arbitrable disputes, arbitrator selection process, cost allocation, and enforcement mechanisms, while ensuring compliance with Malaysian legal requirements and protecting the fundamental rights of all parties involved.
Suggested Sections

1. Parties: Identifies and defines all parties to the arbitration agreement

2. Background: Sets out the context and purpose of the arbitration agreement

3. Definitions: Defines key terms used throughout the agreement

4. Agreement to Arbitrate: Core clause establishing the mutual agreement to submit disputes to arbitration

5. Scope of Arbitration: Defines what types of disputes are covered by the arbitration agreement

6. Arbitration Rules and Procedures: Specifies the rules governing the arbitration process

7. Selection of Arbitrator: Process for choosing the arbitrator(s)

8. Costs and Fees: Allocation of arbitration costs and fees between parties

9. Confidentiality: Provisions regarding confidentiality of the arbitration proceedings

10. Governing Law: Specifies Malaysian law as the governing law

11. Enforcement: Provisions regarding the enforcement of arbitral awards

12. Severability: Ensures remainder of agreement remains valid if any provision is found unenforceable

Optional Sections

1. Multi-Party Arbitration: Additional provisions for cases involving more than two parties

2. Emergency Arbitrator Provisions: Procedures for urgent interim relief before the arbitration tribunal is formed

3. Industry-Specific Provisions: Special provisions relevant to specific industries (e.g., construction, employment)

4. Class Action Waiver: Explicit prohibition of class or collective arbitration

5. Mediation Prerequisite: Requirement to attempt mediation before proceeding to arbitration

6. Technology and Virtual Hearings: Provisions for conducting arbitration through virtual means

7. Appeals Process: Optional provisions for appealing the arbitration decision

Suggested Schedules

1. Schedule 1: Arbitration Procedures: Detailed step-by-step procedures for conducting the arbitration

2. Schedule 2: Fee Schedule: Detailed breakdown of arbitration fees and costs

3. Schedule 3: Approved Arbitrators: List of pre-approved arbitrators if specified

4. Appendix A: Notice of Arbitration Form: Standard form for initiating arbitration proceedings

5. Appendix B: Response to Notice of Arbitration: Standard form for responding to arbitration notice

6. Appendix C: Code of Ethics: Ethical guidelines for arbitrators and parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Professional Services

Healthcare

Construction

Education

E-commerce

Telecommunications

Consumer Goods

Real Estate

Relevant Teams

Legal

Human Resources

Compliance

Risk Management

Operations

Corporate Governance

Contract Administration

Employee Relations

Executive Leadership

Procurement

Relevant Roles

Legal Counsel

HR Director

Compliance Officer

Risk Manager

Contract Manager

Chief Legal Officer

HR Manager

Business Development Manager

Operations Director

Company Secretary

Chief Executive Officer

Chief Operating Officer

Employment Relations Manager

Procurement Manager

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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