Employment contracts
in Malaysia.

SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)

CONTRACT LANGUAGES Malay / English

PAYROLL TAX 13.22%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

Malaysia

Standard employment contract in Malaysia: Open-ended contract

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.

Alternative employment contract in Malaysia: Fixed-Term

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.

Hiring in Malaysia, Made Easy

Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the standard contract and the alternative contract in Malaysia?

The primary difference between Open-Ended and Fixed-Term contracts is ‘permanence’ i.e. the potential length of the period of employment. Open-Ended contracts employ on a permanent basis, whereas fixed-term contracts employ for a specified period of time. This means that termination is needed to end an Open-Ended contract, whereas Fixed-Term contracts end on the date specified or upon the occurrence of a pre-specified event, such as the completion of a project.

Which Malaysia employment contract is right for me?

There are certain terms and conditions that must be included in Malaysian employment agreements. For the most part, it’s possible to create employment contracts that align with your company’s objectives and existing policies. At Horizons, our in-country experts can advise on the particulars of any employment agreement to ensure compliance with Malaysian employment law.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)