Global Expansion Resources | Malaysia
Malaysia Employment Contracts
Expand into Malaysia with our specialist global PEO services
Issuing compliant Malaysia employment contracts for your international employees with Leap29 as your global PEO provider
Situated in the heart of Southeast Asia, Malaysia provides access to a large regional market that is extremely attractive for businesses and serves as a gateway to other Southeast Asian countries, including Singapore, Thailand and Vietnam. Malaysia’s welcoming attitude towards foreign investment and simplified business processes has made it easier than ever for companies to establish themselves in this booming Asian market.
When your company makes the choice to expand globally, compliance is key. One major aspect of global compliance is the issuing of lawful employment contracts for your international recruits. This is where partnering with a Professional Employer Organisation (PEO) provider, such as Leap29, is the difference between success on the global stage and costly fines or legal consequences for non-compliance.
In Malaysia specifically, the Employment Act 1955 mandates written contracts for employment lasting longer than one month, or for work expected to take more than a month. These contracts are essential for compliance with Malaysian labour laws, which are primarily governed by the Ministry of Human Resources, since they establish the rights and responsibilities of both employers and employees.
Ensure you remain compliant by partnering with a specialist PEO provider like Leap29.
Want to expand into Malaysia?
Contact us today to see how Leap29 can be the trusted partner that supports your global expansion.
"*" indicates required fields
What’s included:
HR software
Bespoke employee management software included in our PEO service.
Global compliance
We have expert teams across the world to ensure global compliance.
Transparent pricing
Avoid hidden costs and account for our fee with our transparent pricing.
Malaysia Expansion Advice
What does a Malaysian employment contract include?
A Malaysian employment contract outlines the terms of the employment relationship, including job details, compensation, working hours, leave and termination procedures. It must be in writing for employment lasting longer than one month. The Employment Act 1955 provides the legal framework, and contracts should also address matters like confidentiality and non-compete clauses.
Here’s what’s typically included in a Malaysian contract of employment:
- Parties Involved: Clearly identifies the employer and employee, including their names etc.
- Job Details: Including a clear description of the employee’s duties and responsibilities, as well as the work location.
- Employment Type: Permanent, contract-based or part-time.
- Compensation and Benefits: Details the salary or wages, frequency of payment and any allowances, bonuses or incentive schemes the employee is eligible for.
- Working Hours: The standard working hours per day or week, including any overtime expectations.
- Leave Entitlements: Specifies the types of leave available, such as annual leave, sick leave, maternity/paternity leave etc. and the respective entitlements.
- Probationary Period: Outlines the terms of the probationary period, including durations and assessment criteria (if applicable).
- Confidentiality and Non-Disclosure: Includes clauses to protect the employer’s confidential information and trade secrets.
- Public Holidays
- Health and Safety
Malaysian employment contracts may also include further clauses, such as non-compete, non-solicitation, codes of conduct and dress codes, if at all relevant or applicable to the position outlined in the contract.
What types of employment contracts are there in Malaysia?
In Malaysia, employment contracts can be largely grouped into the following categories:
- Permanent Employment Contract – These Malaysian employment contracts provide ongoing employment without a fixed end date. Employees under these contracts are entitled to full benefits such as annual leave, sick leave, and other statutory entitlements outlined in the Employment Act 1955.
- Fixed-Term Contract – These are agreements that run for a defined period and are used in project-based sectors or when there is a need for temporary staffing. They cannot be used without a specific purpose, such as a project or to cover a temporary absence such as maternity leave. Once the contract period ends, the employment relationship concludes automatically. These contracts fall under the Employment Act 1955, which guarantees that employees on fixed-term agreements receive the same protections as permanent staff during their contract term.
Part-Time Employment Contract – These are intended for employees who work fewer hours, or on an irregular schedule compared to full-time staff. According to the Employment Act 1955, a part-time employee is one whose average weekly working hours fall between 30% and 70% of the standard hours worked by a full-time employee in a similar role within the same company. These contracts are especially common in industries such as retail and hospitality.
Can I change an employment contract?
Yes, Malaysian employment contracts can be changed, but this requires a mutual agreement between the employer and employee. For any significant changes to an employment contract, both parties must be in agreement about the new terms, and this should be documented in writing to avoid any potential disputes in the future.
Why use a PEO partner to manage Malaysian employment contracts?
Working with a specialist PEO partner helps your business steer clear of the many compliance risks that come with international expansion, avoiding disputes, fines and potential legal action.
With Leap29’s global PEO solutions supporting your business, there’s no need to set up a local entity or handle the complexities of payroll, HR administration, legally compliant employment contracts, tax obligations or work permit and visa requirements.
Our dedicated expansion experts boast more than 25 years of experience delivering tailored PEO solutions in more than 180 countries. We support businesses across a wide range of sectors, from Construction, Engineering and Manufacturing, to Logistics, Technology and Education.
If you’d like to learn how our Malaysian PEO services can accelerate your international growth, call our team on +44 (0) 20 8129 6860 or email us at expansion@leap29.com.
Don’t take our word for it!
“
Talk to an expert today
Contact us today to see how Leap29 can be the trusted EOR partner that supports your global expansion.
"*" indicates required fields
Malaysia
Expansion Resources
Local expertise, global reach
Employ people compliantly in 180+ countries – with or without your own foreign entities. We can help you set up and manage foreign entities – or act as an Employer of Record. We can also help with multi-country payroll and all your HR management. Wherever, whenever and however you want to employ people, we can help.
180+
We make expansion in Malaysia simple
Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
EOR Services
Employ people compliantly in 180+ countries – without setting up new entities. We’ll shoulder responsibility as Employer of Record (EOR), making sure all your international employment is fully compliant.
We can also take care of your global HR from multi-country payroll to onboarding and offboarding.
Payroll Solutions
Getting global payroll right is one of the hardest challenges for any business expanding into new countries. We can shoulder this burden, freeing up valuable in-house resource to focus on growing your business.
Consider us an extension of your HR team, ready to answer all your questions large and small.
Global Mobility
Mobilise your people across borders with ease. Relocating to work abroad can feel daunting. But with Leap29 at your side, your employees can feel safe and supported.
We’ll guide your employees through the complexities of working in another country, helping them settle in fast.
Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
PEO Solutions
Employ international talent wherever and whenever you need it – and enjoy the peace of mind of knowing you’re fully compliant. Our Professional Employer Organisation (PEO) services allow you to focus on growing your business while we handle compliance, multi-country payroll and your global HR.
Support & Advisory
The help you need to make your global growth effortless – trusted guidance and advice on your expansion challenges large and small.
HR Support
When you’re employing people in lots of different countries, answering just a simple query can take a disproportionate amount of time for your in-house HR team. Our HR Support service reduces this burden, saving you time and money and giving you the confidence of knowing your employees are well looked after, whatever their location.
Contractor Payroll
Enjoy compliant contractor payroll that meets all local requirements for tax, social security and employment legislation. We understand the importance of compliant contractor payroll to the success of your business and will pay your contractors on time, every time.
Start hiring today – and onboard within hours.
Pricing
Budget confidently with transparent, competitive fees and no hidden costs.
Want us to shoulder employer liability and take care of your global HR through our EOR solution? No problem. Just want global payroll? You can have that too. Pick the solutions that your individual business needs.