In Malaysia, an Employee Letter of Engagement (also known as an offer letter or employment contract) should include the following essential details:
1. Basic Employment Details
- Employer’s Name & Address
- Employee’s Name & Identification Number
- Job Title & Description
- Work Location
- Employment Type (Permanent, Contract, Part-Time, etc.)
2. Employment Terms & Conditions
- Commencement Date
- Probation Period: Typically 3 to 6 months
- Working Hours: Generally 8 hours per day, 5–6 days per week (as per the Employment Act 1955)
- Remuneration (Salary & Benefits):
- Monthly salary and payment date
- Allowances, bonuses, and incentives (if any)
3. Leave Entitlements (Subject to Employment Act 1955 minimum requirements)
- Annual Leave(based on years of service):
- 1 to 2 years: 8 days
- 2 to 5 years: 12 days
- More than 5 years: 16 days
- Medical Leave(per year):
- Less than 2 years: 14 days
- 2 to 5 years: 18 days
- More than 5 years: 22 days
- Hospitalization Leave: Up to 60 days (inclusive of medical leave)
- Public Holidays: Minimum 11 paid public holidays, including National Day, Malaysia Day, and others specified by the employer.
- Maternity Leave: 98 days (fully paid, subject to eligibility)
- Paternity Leave: 7 days (for eligible employees, effective 2023)
4. Termination & Notice Period
- During Probation: Typically 1 to 2 weeks’ notice or salary in lieu
- After Confirmation: Commonly 1 month’s notice (subject to employer-employee agreement)
5. Other Standard Clauses
- Code of Conduct & Company Policies
- Confidentiality & Non-Disclosure
- Disciplinary Procedures
- Amendment Clause (Company’s right to revise terms)