Contract Agreement Malaysia

Notwithstanding the foregoing, Section 10(1) of the EA provides that where a service contract requires an employee to work for more than one month, the contract must be in writing and include a termination clause by one of the parties. Although the EA contains an implicit provision that protects your right as a worker, it is advisable that you read and understand your employment contract before signing it, as enforcing your rights after signing the contract would be much more difficult than negotiating the contractual terms with your employer before signing it. The EA also provides that a contract is terminated without notice, or where a dismissal has taken place without waiting for the expiry of such termination, “by paying to the other party compensation equal to an amount that would have been paid to the worker during the duration of such dismissal or during the undue period of such dismissal”. While the EA does not apply to all employees, employees can actually use it as a reference to check their employment contracts to identify provisions that might be unfair to them. This is due to the fact that the EA contains provisions that protect workers` rights with regard to the payment of wages, working time, rest, annual leave, termination of the employment relationship, etc.

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