Hiring, Paying and Caring for Talent in More Than 150 Nations
There must be a genuine need for a fixed-term contract (e.g. a specific project) otherwise it may be deemed indefinite. It must be for a minimum period of one month and a maximum period of two years. It can be renewed up to the two year limit. However, continuous renewals or extensions may also lead to a determination that it was indefinite. It may not include a probation period. Generally, if a fixed-term contract is unilaterally terminated by the employer before it concludes, the Worker is likely entitled to the wages that would have otherwise been earned.
The law in Malaysia does not distinguish between different categories of Workers. However, the Employment Act of 1955 (EA 1955) applies special rules to those earning less than MYR 2,000/month (appx. USD 480), manual laborers inclusive of their supervisors, those involved in vehicle maintenance, domestic servants, and those working on a vessel in any capacity.
There is no statutory probationary period in Malaysia. However, it is common practice to includee a three to six month probationary period in order to assess an employee's fitness for the position. A 'probationer' has the same rights as an employee such that the employment cannot be terminated without just cause or adequate notice; albeit, the threshold for cause is generally lower for probationers.
In Malaysia, Workers must recognize 11 paid public holidays. Most employees enjoy all 18 to 20 holidays per year. For non-EA employees, any additional renumeration provided for on public holidays is agreed to by contract. Overtime worked on a public holiday is compensated at 300%.
For employees not governed by the EA 1955, paid sick leave entitlement will be determined by the employment contract. Most Workers are entitled to 14 days of paid sick leave per year.
For employees not governed by the EA 1955, paid sick leave entitlement will be determined by the employment contract. Most Workers are entitled to 14 days of paid sick leave per year.
Only EA employees are entitled to overtime pay by statute. All other employees may contractually waive their right to overtime pay. Usually, managerial positions that earn more than MYR 5,000 are not entitled to overtime.
Creating a worldwide workforce is a continuous process that extends beyond a contract.
TCWGlobal surpasses the typical employer of record (EOR) by ensuring that your team receives personalized attention, ranging from smooth payrolling management to customized benefits based on your specific needs and location.
