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Sample Employment Contract

This Contract of Employment outlines the terms between XXXXXXXXXX SDN BHD and the Worker for a two-year employment as a Factory Worker in Malaysia. It details wages, working hours, leave entitlements, and responsibilities regarding accommodation and insurance, along with conditions for termination and repatriation. The contract is governed by Malaysian laws and includes provisions for amendments and interpretation.

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0% found this document useful (0 votes)
106 views5 pages

Sample Employment Contract

This Contract of Employment outlines the terms between XXXXXXXXXX SDN BHD and the Worker for a two-year employment as a Factory Worker in Malaysia. It details wages, working hours, leave entitlements, and responsibilities regarding accommodation and insurance, along with conditions for termination and repatriation. The contract is governed by Malaysian laws and includes provisions for amendments and interpretation.

Uploaded by

jay.pathak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Date :

APPENDIX A

CONTRACT OF EMPLOYMENT

This CONTRACT OF EMPLOYMENT is made on this day XX month of XXXX 2022 between XXXXXXXXXX
SDN BHD (XXXXXX-X) Address: No. XX, XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX,
Malaysia, hereinafter referred to as "the Employer") of the one part and Mr./Ms
, a bearer of Passport No. (hereinafter referred,
to as "the Worker") of the other part.

Whereas, the Employer desires to employ the Worker in accordance with the terms and conditions of this
Contract of Employment and subject to the laws, rules, regulations, national policies and directives in Malaysia;
and

Whereas, the Worker desires to be employed by the Employer subject to the laws, rules, regulations, national
policies and directives in Malaysia;

Therefore,

IT IS HEREBY AGREED as follows:

1. Duration of this Contract of Employment


The duration of this Contract of Employment shall be for a period of two (2) years commencing on the day
of arrival of the Worker in Malaysia until such time this Contract of Employment is terminated in
accordance with the terms and conditions of this Contract of Employment.

2. Occupation
The Worker shall be employed as Factory Worker in XXXXXXXXXX sector.

3. Wages
3.1 The Worker shall receive a basic wage of RM 1,500.00 (excluding allowances and overtime).
This basic wage shall comply with the national minimum wage of Malaysia.
Allowance:
a) Attendance : = RM 0.00
b) Food : = RM 0.00
c) Transport : = RM 0.00
d) Shift : = RM 0.00
e) Overtime (as per Government rule) = RM 562.59
f) Any other ………………………… = RM 0.00

Total = RM 2,062.50

3.2 Wages shall be paid by the Employer on a monthly basis not later than seventh day after the last
day of the wage period.

3.3 The monthly wages shall be paid to a bank account of the Worker.

3.4 As stipulated in the Regulation 9 of the Employment Regulations 1957 [P.4.(A) 333/83] of
Malaysia, every employer shall furnish to every worker employed by him in a separate statement
or card the particulars relating to details of wages and other allowances earned during each wage
period.
4. Working Hours
Normal working hours shall be eight (8) hours per day in accordance with the labour laws in Malaysia.

5. Overtime
In the event the Worker, upon the request by the Employer, agrees to work in excess of his/her normal
eight (8) hours of work, the Worker shall be paid in accordance with the labour laws in Malaysia.
Overtime
on normal days : salary x 1.5
on Sundays / rest days : salary x 2.0
on Public Holidays : salary x 3.0
6. Rest Day
6.1 The Worker shall be entitled to weekly rest day (one day in a week) in accordance with the
labour laws of Malaysia.

6.2 In the event that the Worker, upon the request by the Employer, agrees to work on such rest day,
the Worker shall be paid in accordance with the labour laws in Malaysia.

7. Public Holiday
7.1 The Worker shall be entitled to public holidays in accordance with the labour laws in Malaysia.
The employee shall be entitled to be paid holiday for a total of 11 Public holidays in any
one year of service that must include the following four days:
1. the National day
2. the birthday of the Yang di-Pertuan Agong
3. the birthday of the Ruler of the State as the case may be and / or the Federal Territory
day where the employee is working in such an area.
4. Labour day
5. and another more days from:-
Chinese New Year -2 days
Hari Raya Puasa -2 days
Hari Raya Haji -1 day
Deepawali -1 day
Christmas day -1 day

7.2 In the event the Worker, upon the request by the Employer, agrees to work on such public
holiday, the Worker shall be paid in accordance with the labour laws in Malaysia.

8. Leave
8.1 The worker shall be entitled to paid annual leave in accordance with the labour laws in Malaysia.

Annual leave
Annual leave of 8 days for the first two years of service; for period of service between two
to five years the employee would qualify for 12 days of leave; and for services of more
than five years the employee would qualify for 16 days of leave.

8.2 The Employer upon application from the Worker may grant 15 days leave in case of death of
close family member (Parents, Spouse and Children) of the Worker. The leave may be deducted
from the accumulated annual leave of the Worker, or in cases where accumulated annual leave
is not sufficient, the Employer may grant unpaid leave to the said Worker.

9. Levy
The payment of levy shall be borne by the Employer.

10. Medical and Accident Insurance


The Worker may be insured under the current PERKESO (Insurance) Scheme under the Workmen's
Compensation Act 1952 [Act 273] of Malaysia and if applicable, the Foreign Workers Hospitalization
Insurance Scheme (SPIKPA) or any other insurance scheme as may be adopted by the Government of
Malaysia.
11. Deductions
The Employer is entitled to make deduction for not more than 50 percent (50%) in a month from the
Worker's wages in the event of any monetary advance in accordance with the labour laws of Malaysia.

12. Accommodation
12.1 The Employer shall provide the Worker decent accommodation with basic amenities that meets
the stipulated minimum standards on safety and health.

12.2 The Employer upon approval by the Director General of Labour of Malaysia is allowed to impose
a wage deduction of RM 50 per month or any approved amount for the purpose of providing such
accommodation as stipulated under Section 24(4)(e) of The Employment Act 1955 of Malaysia.

13. ick Leave


The Worker shall be entitled to paid sick leave and paid hospitalization leave in accordance with the labour
laws of Malaysia.
Sick leave (without hospitalisation):

14 days for each year of service for service less than two years; and 18 days for services between
two to five years; and 22 days annually for services exceeding five years.

In case of hospitalisation

And in case of hospitalisation, the employee qualifies for 60 days leave in each calendar year.

14. Renewal of Worker's Visit Pass (Temporary Employment)


14.1 The Employer shall renew the Worker's Visit Pass (Temporary Employment) three (3) months
prior to the expiry of the said pass. All costs related to the renewal shall be borne by the
Employer. The cost of levy will be as per Paragraph 9 of the Contract of Employment.
14.2 Any penalty or compound imposed due to the failure of the Employer to do so shall solely be
borne by the Employer.

15. Air Passage


The travelling expenses from Nepal to any agreed point of entry in Malaysia and the expenses from
any agreed point of exit in Malaysia to Nepal shall be borne by the Employer upon completion of this
Contract of Employment.

16. Repatriation
16.1 The repatriation cost of the Worker from their place of work to their original exit point in source
country shall be borne by the Employer under the following circumstances:

(i) At the completion of this Contract of Employment;


(ii) Termination of this Contract of Employment by the Employer other than non-compliance
of the terms and conditions of this Contract of Employment by the Worker;
(iii) Termination of this Contract of Employment by the Worker due to non-compliance of the
terms and conditions of this Contract of Employment by the Employer;

16.2 The Worker shall be responsible to bear related expenses under the Malaysian laws and
expenses relating to repatriation for circumstances that are not mentioned in clause 16.1.
16.3 The term "original exit point" in this Contract of Employment shall mean any international airport
in source country.
17. Repatriation in the case of death of the Worker
17.1 In the event of death of the Worker, the Employer shall be responsible for the costs of repatriation
of the dead body.
17.2 If the funeral takes place in Malaysia with the consent of the family of the deceased, the employer
shall be responsible for the costs of the funeral and repatriation of the remains.
17.3 The employer shall promptly settle the due salary, insurance and other benefits to the family of
the deceased.

18. Termination
18.1 In the event the Employer intends to terminate this Contract of Employment, the Employer shall
give adequate written notice as stipulated under the labour laws or wages in lieu of such notice of
his intention to terminate such contract, and shall provide airfare to source country for the
Worker.
18.2 In the event the Worker intends to terminate this Contract of Employment, the Worker shall give
adequate written notice as stipulated under the labour laws or wages in lieu of such notice of his
intention to terminate such contract, and shall bear the cost of airfare to source country.

19. Restrictions
19.1 The Worker shall not participate in any political activities or activities of those connected with
political organizations in Malaysia.
19.2 The Worker shall not change employment during the period of this Contract of Employment and
shall not carry out or do other business.
19.3 If the Worker is found by the competent authority concerned engaged in any illegal, subversive or
criminal activities, the Worker shall be dismissed from the job and shall be repatriated to Nepal at
Worker's own expenses.

20. Safekeeping of the Passport


20.1 The Employer shall not keep the passport of the Worker in his custody.
20.2 The Passport of the Worker shall be in his/her custody at all times. In the event the passport is
lost or damaged while in the possession of the Worker, the Worker shall bear all related costs for
the replacement of his/her passport.
20.3 The Worker shall submit the passport to the Employer for the following purposes:
(i) medical screenings;
(ii) application of Visit Pass (Temporary Employment);
(iii) application of Foreign Workers Identity Card, and
(iv) renewal of Visit Pass (Temporary Employment).
20.4 The passport shall be returned to the Worker upon completion of these purposes.
20.5 In the event that the Worker's passport is lost or damaged while in the custody of the Employer
for the above-mentioned purposes, the Employer shall bear all related costs for the replacement
of the Worker’s passport.

21. Outstanding Wages


In the event the Worker is to be repatriated before the expiry of this Contract of Employment, the Employer
shall pay all outstanding basic wages and all other payments owed to the Worker subject to the relevant
laws, rules, regulations, national policies and directives relating to employment applicable in Malaysia.

22. Amendment
The Employer and the Worker may amend this Contract of Employment to incorporate any other terms and
conditions which shall be more favorable to the Worker subject to relevant laws, rules, regulations, national
policies and directives relating to employment applicable in Malaysia.

23. Time is of the Essence


Time whenever mentioned shall be of the essence of this Contract of Employment.

24. Interpretation
In the event there is a conflict of interpretation between the English text and any text in other language
used in this Contract of Employment, the English text shall prevail.
25. Laws
This Contract of Employment shall be subjected to the laws of Malaysia.

26. Succession
This Contract of Employment shall be binding on the successor in title, assignee, personnel or
representatives of the parties hereto.

27. Language of this Contract of Employment


This Contract of Employment shall be prepared in six (6) original texts, two (2) each in Malay and English
languages, all texts being equally authentic. In the event of any divergence of interpretation between any
of the texts, the English text shall prevail.

IN WITNESS WHEREOF the Parties hereto have signed this Contract of Employment on the day and year
mentioned at the beginning of this Contract of Employment.

Employer's Signature, Worker’s Signature,

___________________________ ___________________________
Name: XXXXXXXXXXXXXXXXX Name:
NRIC No.: XXXXXXXX
Designation: DIRECTOR Passport No.:
Address: No. XXXXXXXXXXXXXXXXXXX, Emergency Contact No.
XXXXXXXXXXXXXXXXXXXXXXXXXXX (of dependent)
XXXXXXXXXXXXXX, Malaysia

Signature of Witness from Employer, Signature of Witness from Worker

___________________________ ___________________________
Name: Name:
Address: Address:
Date: Date :

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