Updated May 6th 2025

All About Hiring Employees in Malaysia

Get the information you need to hire in Malaysia. Learn how Justworks EOR can help you streamline international hiring and manage employees abroad.

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The Benefits of an EOR for Hiring in Malaysia

Hiring in Malaysia doesn’t need to be stressful. With Justworks and our global EOR, you can grow your team in Malaysia effortlessly. Our team is here to guide you through every step of the process, from onboarding to offboarding and everything in between along the employee lifecycle. With straightforward, transparent pricing, you’ll always know exactly what to expect, with no hidden surprises. Whether you’re hiring your first employee or building a full team, Justworks is here to help you navigate the process with ease and confidence.

Options for Hiring in Malaysia

Partnering with an EOR

Justworks takes on the employer-related responsibilities of hiring in Malaysia, helping you avoid the expensive process of establishing a legal entity.

Justworks oversees most local HR operations:

  • Strengthening compliance with local labor laws and regulations

  • Creating employment contracts 

  • Managing payroll, payroll taxes, and related payments like withholdings and deductions

  • Administering local statutory benefits

Hiring Practices

Let’s explore common hiring practices to familiarize you with the Malaysian market. 

Employment Contracts

Written employment contracts are strongly recommended in Malaysia to protect both parties. For written contracts, including a clause that describes the process for termination is required. Other details to include in an employment contract in Malaysia: 

  • Full names and identification of the employer and employee

  • Job title and description

  • Start date of employment

  • Name or position of the direct supervisor

  • Specification of permanent or contract employment

  • Details of compensation, including salary and benefits

  • Regular payment schedule

  • Workdays and hours

  • Weekly rest period

  • Social contributions

Background Checks

Pre-employment background checks are permissible in Malaysia, and employers may choose to conduct them. The process usually varies by industry, but employees must be informed of plans to do a background check before gathering their personal information.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

Ready to Hire Confidently in Malaysia?

Justwork makes building your global team seamless by helping you hire and onboard talent in Malaysia and beyond. Save yourself the time and hassle of international hiring today.

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