Contract Worker Agreement Sample Malaysia: What You Need To Know
Contract worker agreements are becoming increasingly common in Malaysia, as businesses look for flexibility and cost-savings in their staffing arrangements. These arrangements can be beneficial for both employers and employees, but it`s important to ensure that the terms of the agreement are clear and legally binding. In this article, we`ll provide a sample contract worker agreement for Malaysia, and highlight some key considerations to keep in mind.
Sample Contract Worker Agreement
[Company Name]
[Address]
[Phone Number]
[Email Address]
[Contract Worker Name]
[Address]
[Phone Number]
[Email Address]
This agreement (the “Agreement”) is made on [Date] between [Company Name] (the “Company”) and [Contract Worker Name] (the “Contract Worker”).
1. Services Provided. The Contract Worker shall provide the following services to the Company: [Description of services].
2. Term. This Agreement shall commence on [Date] and shall continue until [Date], unless earlier terminated in accordance with Section 6.
3. Payment. The Company shall pay the Contract Worker [Amount] per hour/day/week/month, as agreed upon by the parties. Payment shall be made on [Date] of each [week/month], in arrears.
4. Taxes and Benefits. The Contract Worker acknowledges and agrees that he/she is responsible for all taxes, contributions and other payments arising from the compensation paid to him/her hereunder, and that no employment benefits of any kind are being provided by the Company.
5. Confidentiality and Non-Competition. The Contract Worker acknowledges and agrees that he/she shall not disclose to any person or entity, or use for his/her own benefit, any confidential information relating to the Company`s business. The Contract Worker further agrees that he/she shall not engage in any business or activity that competes with the Company`s business, during the term of this Agreement and for a period of [Number] months thereafter.
6. Termination. Either party may terminate this Agreement upon [Number] days` written notice to the other party. The Company may terminate this Agreement immediately, without notice, in the event of the Contract Worker`s breach of any material term of this Agreement.
7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Malaysia.
8. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.
Signed and agreed:
[Company Name]
By: ______________________
[Name]
[Title]
[Date]
[Contract Worker Name]
By: ______________________
[Name]
[Date]
Key Considerations
When drafting a contract worker agreement in Malaysia, there are a few important considerations to keep in mind:
1. Employee vs. Contractor. It`s important to ensure that the classification of the worker is correct under Malaysian law. Workers who are misclassified as contractors when they are, in fact, employees, may be entitled to employment benefits and protections.
2. Termination. Malaysian law generally requires notice to be given for termination of employment, and this requirement may also apply to contract workers. It`s important to ensure that the notice period is clearly stated in the agreement.
3. Confidentiality and Non-Competition. While these clauses can be beneficial for protecting a company`s interests, they must be carefully crafted to ensure that they are not too broad or restrictive.
4. Payment. Malaysian law requires that all workers be paid at least the minimum wage, and failure to comply with these requirements can result in penalties and legal action.
Conclusion
A contract worker agreement can be a useful tool for businesses in Malaysia looking for flexibility in their staffing arrangements. However, it`s important to ensure that the terms of the agreement are clear and legally binding, and that all relevant laws and regulations are complied with. The sample contract worker agreement provided in this article can serve as a starting point, but it`s always advisable to seek the advice of a legal professional when drafting such an agreement.