Employment Contracts & Policies

Employment Contracts and Workplace Policies in Malaysia

Properly drafted employment contracts and workplace policies reduce the risk of disputes and ensure that both employer and employee understand their respective rights and obligations from the outset. NNTA and Co assists employers in drafting, reviewing, and updating employment documentation, and advises employees on the terms of their contracts.

Scope of Assistance - Employers

Drafting employment contracts compliant with the Employment Act 1955
Employment contract review and amendments
Developing employee handbooks and workplace policies
Non-compete and confidentiality agreements
Service agreements and executive contracts
Disciplinary procedures and codes of conduct
Employee benefits and compensation policies
Remote work and flexible working arrangements
Leave policies and attendance management
Data protection and privacy policies

Scope of Assistance - Employees

Reviewing and advising on the terms of employment contracts
Identifying unfavourable or non-compliant terms
Advising on non-compete and restraint of trade clauses
Negotiating amendments or severance terms

Minimum Standards under the Employment Act 1955

The Employment Act 1955 sets out minimum entitlements for employees falling within its scope, including provisions on rest days, hours of work, overtime, annual leave, sick leave, maternity leave, and termination benefits. Employment contracts may provide for terms more favourable than the statutory minimum but may not lawfully contract out of it.

Non-Compete and Restraint of Trade Clauses

Restraint of trade clauses in employment contracts are subject to scrutiny under Malaysian law. A clause that is too wide in its geographic scope, duration, or subject matter may be held to be unenforceable. We advise employers on drafting enforceable restraint provisions and advise employees on the validity of restrictions imposed on them.

Clear, well-drafted employment documentation reduces the scope for disputes and provides a reliable framework for managing the employment relationship. It is advisable to review employment contracts and policies periodically, particularly when legislation changes or the nature of the business evolves.

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