In professional settings, the standard type of employment contracts offered in Malaysia are open-ended contracts. This type of contract is also referred to as an ‘unlimited’ or ‘permanent’ contract.
When hiring in Malaysia, employers should draft concise, written contracts that detail the terms and conditions of employment. The contract provisions should always be written in both English and Malay. When your business partners with Horizons’ Malaysia PEO, our in-country experts will assist you to draft letters of offer and employment contracts that comply with local employment legislation.
Fixed-term contracts, also known as ‘limited’ or ‘temporary’ contracts, are used in Malaysia but less frequently than open-ended contracts. Under a fixed-term contract, the terms of the working relationship are only valid for a specified period.
Keep in mind that, where a fixed-term contract has been renewed multiple times, the Malaysian courts may view the employee concerned to be a permanent staff member should they be dismissed.