Malaysia: Contracts of employment
Original authors: Lim Pei Yuan, Michael Chai & Co.
More new Malaysia chapters will be added to the guide soon, including: Useful online services; Updates - key employment law developments; and Useful contacts - legal service providers.
Summary
- A contract of employment may be oral or in writing. Employers and employees are free to negotiate the terms of the employment contract but employees cannot be given less beneficial terms than those guaranteed by statute. (See General)
- There is no statutory obligation that employment should start with a probationary period. However, employment contracts commonly provide for a probationary period. (See Probationary periods)
- There is little legal distinction between different types of employment contracts. (See Types of contract)
- A contract of service must be in writing if the length of service exceeds one month. There are no statutory rules on when the employment contract needs to be provided to the employee. (See Written contracts or statement of terms of employment)
- Once an employment contract is concluded, any variation of the contract will generally not be valid. (See Variation of contract)
- Generally, the inclusion of non-competition, non-solicitation, non-dealing or restraint of trade clauses in employment contracts (which has the effect of preventing someone from carrying out a lawful trade, profession, or business) is void. (See Restrictive covenants)
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