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The Novation Employment Contract is a crucial document used in Malaysian business transactions where an employee's contract needs to be transferred from one employer to another, typically during corporate restructuring, mergers and acquisitions, or business transfers. This document ensures compliance with Malaysian employment laws, particularly the Employment Act 1955 and Industrial Relations Act 1967, while maintaining the employee's continuous service and existing employment terms. It includes detailed provisions for the transfer of rights and obligations, confirmation of employment terms, treatment of benefits and entitlements, and necessary statutory compliance requirements. The agreement is essential for protecting all parties' interests and ensuring a smooth transition of employment relationships in accordance with Malaysian legal requirements.

1. Parties: Identifies the three parties involved: Original Employer, New Employer, and Employee

2. Background: Sets out the context of the existing employment relationship and the reason for novation

3. Definitions: Defines key terms used throughout the agreement, including Effective Date, Original Employment Contract, and Transfer Date

4. Original Employment Terms: References and confirms the existing employment terms and conditions

5. Novation: Core clause that effects the transfer of rights and obligations from Original Employer to New Employer

6. Continuity of Employment: Confirms that employment is continuous and previous service is recognized

7. Transfer of Rights and Obligations: Details the specific rights and obligations being transferred between employers

8. Employee Benefits and Entitlements: Addresses continuation of benefits, leave entitlements, and other employment terms

9. Statutory Compliance: Confirms compliance with relevant Malaysian employment laws and regulations

10. Release and Discharge: Releases Original Employer from future obligations and binds New Employer

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

12. Execution: Signature blocks for all three parties