A contract of employment is a legally binding agreement between an employer and employee that outlines the terms and conditions of employment. In Malaysia, it is crucial for every employer to provide their employees with a written contract to prevent any misunderstandings that may arise during the course of employment. Here is a sample contract of employment for employers in Malaysia.
The contract of employment should start with the name and address of the employer and employee. The date of commencement of employment should also be included. The following are some essential clauses that should be included in a contract of employment in Malaysia:
1. Probationary period – It is customary in Malaysia to have a probationary period of three to six months. During this time, the employer can evaluate the performance of the employee and decide whether to continue with the employment.
2. Job description – The contract should include a detailed job description that outlines the duties and responsibilities of the employee. This will help to avoid any disputes that may arise in the future regarding the scope of work.
3. Salary – The contract should specify the salary of the employee, including any bonuses or allowances. It should also include details about the payment method, such as whether it will be done monthly or bi-weekly.
4. Working hours – The contract should specify the working hours of the employee and any overtime policies. It should also include details about the lunch break and rest days.
5. Leave entitlement – The contract should outline the leave entitlement of the employee, including annual leave, sick leave, and maternity leave. It should also specify the procedure for applying for leave.
6. Termination – The contract should specify the grounds for termination, including misconduct, poor performance, and redundancy. It should also include details about the notice period required for termination.
7. Confidentiality – The contract should specify the confidentiality obligations of the employee, including the non-disclosure of confidential information.
In conclusion, a contract of employment is a critical document that protects both the employer and employee from any misunderstandings that may arise during the course of employment. Employers in Malaysia should ensure that their contracts comply with the Employment Act 1955 and other relevant laws. By using the sample contract of employment mentioned above, employers can ensure that they have covered all the essential clauses and that their contracts are legally binding.
