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Minimum Term Employment Contract Template for Malaysia

A legally binding employment agreement governed by Malaysian law that establishes a fixed minimum term of employment between an employer and employee. This contract type complies with the Employment Act 1955 and related Malaysian employment legislation, setting out the fundamental terms and conditions of employment including remuneration, duties, working hours, and benefits. The agreement provides security for both parties by guaranteeing a minimum duration of employment while detailing the rights and obligations of each party during this period.

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What is a Minimum Term Employment Contract?

This Minimum Term Employment Contract is designed for use in Malaysia when an employer wishes to engage an employee for a specified minimum duration. It is particularly suitable for project-based work, seasonal employment, or when companies require commitment for a specific period. The contract complies with Malaysian employment law, including the Employment Act 1955, Minimum Wages Order, and other relevant legislation. It comprehensively covers essential employment terms such as duties, compensation, benefits, and termination provisions, while protecting both employer and employee interests through clear specification of rights and obligations during the agreed minimum term. This document type is commonly used in industries with project-based work structures or where specific skill sets are required for defined periods.

What sections should be included in a Minimum Term Employment Contract?

1. Parties: Identification of the employer and employee with complete legal names and addresses

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the contract

4. Appointment and Term: Details of the position, job title, and duration of the minimum term

5. Duties and Responsibilities: Main duties, reporting structure, and key responsibilities of the position

6. Place of Work: Primary workplace location and any mobility requirements

7. Hours of Work: Standard working hours, rest days, and overtime arrangements

8. Remuneration: Salary, payment schedule, and other monetary benefits

9. Statutory Contributions: EPF, SOCSO, and EIS contributions as per Malaysian law

10. Leave Entitlements: Annual, medical, and other statutory leave entitlements

11. Termination: Notice periods and grounds for termination

12. Confidentiality: Obligations regarding company confidential information

13. Governing Law: Specification of Malaysian law as governing law

14. Entire Agreement: Standard clause confirming the contract as the complete agreement between parties

What sections are optional to include in a Minimum Term Employment Contract?

1. Probation Period: Include when the company wishes to implement an initial probation period

2. Non-Competition: Include for senior positions or roles with access to sensitive information

3. Intellectual Property: Include for creative, technical, or R&D positions

4. Remote Working: Include if the role allows for remote work arrangements

5. Commission Structure: Include for sales positions or roles with variable compensation

6. International Travel: Include if the role requires international travel

7. Training Requirements: Include if specific training or qualifications are required

8. Performance Bonus: Include if the role includes performance-based incentives

What schedules should be included in a Minimum Term Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and allowances

3. Schedule 3 - Company Policies: Key company policies that form part of the employment terms

4. Schedule 4 - Benefits Package: Details of additional benefits such as medical coverage, insurance

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - Confidentiality Agreement: Detailed confidentiality terms and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Document Type

Employment Contract

Cost

Free to use

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