All About Employee Rights in Malaysia
Learn which employee protection regulations you should be aware of when hiring in Malaysia and how Justworks EOR can help.
How an EOR Can Help with Compliance in Malaysia
Understanding Malaysia’s labor laws and employment regulations can feel overwhelming, but with Justworks on your side, the process is simple. Our experts handle everything from payroll to benefits, so you can hire with confidence. Need help managing contracts or navigating working hours rules? We’ve got you covered. With Justworks, you can cut costs, minimize risks, and grow your team without the hassle of setting up a local entity.
What HR Leaders Need to Know
First, let’s explore basic employee rights in Malaysia that employers should understand.
Employment Contracts
Having a written employment contract is highly recommended in Malaysia to safeguard both employer and employee interests. Including a termination clause is a required component. Additional details to outline in a Malaysian employment contract include:
Full names and identification details of both employer and employee
Job title and responsibilities
Employment start date
Supervisor’s name or position
Classification as permanent or contract employment
Salary, benefits, and other compensation details
Payment schedule
Workdays and hours
Weekly rest period
Social security deductions
Payslips
Employers must provide itemized payslips to employees either in physical or electronic format. These payslips should include details such as basic salary, deductions (e.g., taxes, EPF, SOCSO), overtime pay, and allowances. This requirement ensures transparency and compliance with labor laws.
Labor Laws in Malaysia
Here are some important employment laws in Malaysia that employers should familiarize themselves with before hiring.
Ready to Hire Confidently in Malaysia?
Justworks makes building your global team seamless by offering local expertise to help you understand the nuances of the talent market in Malaysia. Save yourself the time and hassle of international hiring today.
