Terms and Conditions of Employment Contract in Malaysia
For both employers and employees in Malaysia, having a clear and comprehensive employment contract is essential to ensure that all parties understand their rights and responsibilities. An employment contract sets out the terms and conditions of employment, and should cover all important aspects such as working hours, salary, benefits, leave entitlements, and termination procedures.
In this article, we will take a closer look at the key terms and conditions of employment contracts in Malaysia.
1. Job Description and Duties
The employment contract should clearly outline the position and responsibilities of the employee, and the scope of their duties. This can include the tasks they are expected to perform, their working hours, and any requirements for travel or overtime.
2. Salary and Benefits
The employment contract should also specify the employee`s salary and benefits, such as bonuses, medical benefits, and insurance coverage. It is important to clearly state the salary and how it will be paid (e.g. monthly or bi-weekly), including any deductions or additional payments such as EPF and SOCSO contributions.
3. Leave Entitlements
The contract should also specify the employee`s entitlement to annual leave, medical leave, and other types of leave such as maternity and paternity leave. It should also outline the procedures for applying for leave and how it will be approved.
4. Termination Procedures
Both the employer and employee should understand the procedures for terminating the employment contract. This can include the notice period required, the reasons for termination, and the procedures for severance pay.
5. Non-Disclosure and Confidentiality
Employment contracts may also include non-disclosure and confidentiality clauses. These clauses forbid employees from sharing confidential information about the company or its clients with third parties and may also specify the consequences of violating these clauses.
6. Intellectual Property Rights
If the employee is expected to create intellectual property (IP) during the course of their employment, the contract should also clearly state the IP ownership. This clause is especially important for companies involved in research and development or creative industries.
7. Dispute Resolution
In case of any dispute arising from the employment contract, the contract should specify the procedures for resolving disputes, such as arbitration or mediation
It is important to note that employment contracts are legally binding agreements, and any changes to the terms and conditions should be made in writing and agreed upon by both parties.
In conclusion, a well-drafted employment contract is a key tool for ensuring a smooth employment relationship in Malaysia. It helps to clarify each party`s rights and obligations and prevents misunderstandings or disputes from arising later on. Employers and employees should take the time to fully understand the terms and conditions of the contract before signing it, or seek legal advice if necessary.