Document background
The Independent Contractor Engagement Letter is a crucial document used in Malaysian business practice when engaging external professionals or service providers on a non-employment basis. It serves to formalize the business relationship while clearly establishing the independent nature of the engagement, distinguishing it from employment relationships governed by the Malaysian Employment Act 1955. This document is particularly important in the current gig economy and flexible working arrangements, where companies frequently engage independent contractors for specific projects or specialized services. The letter includes essential terms such as scope of work, payment terms, intellectual property rights, and confidentiality provisions, while ensuring compliance with Malaysian contract law and relevant regulations. It's designed to protect both parties' interests while maintaining the flexibility and independence characteristic of contractor relationships.
