Malaysia Employment Contract

Employment contract is an agreement between an employer and employee that sets out terms and conditions of employment. Although employment contracts do not need to be in writing to be legally valid, it is better if they are.


employment contract

An employment contract has to contain all terms and conditions relating to the weekly or monthly amount of working hours, the probation and termination period, overtime payment and holidays and further details as salary or the exact title of the job. An employer can set his own conditions and particulars but they must not fall below the minimum requirements of the Employment Act.


In Malaysia, anyone who is employed for longer than one month must have a written employment contract or "contract of service". The employment contract should include:

·         Names of both the employee and the employer

·         Date on which the employment begins

·         Place of work and employer's address

·         Job title, or a brief description of the job

·         Salary, including details of any bonuses or allowances

·         Terms and conditions of employment (relating to holiday entitlement, sick pay, overtime, probation and working hours)

·         Required notice period


A written employment contract should be signed before commencing work. A verbal agreement is sufficient for employment that is less than a month.


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