Navigating Malaysia's employment laws and cultural norms can be challenging for foreign employers. In this blog, we'll provide a brief guide on hiring an employee in Malaysia, covering key legal requirements, recruitment strategies, and cultural considerations to help you find and retain top talent.
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Yes, employment agreements are mandatory in Malaysia. The Malaysian Employment Act 1955 requires employers to provide written Employment Contract to their employees within the first two months of employment. The employment contract should outline the terms and conditions of employment, including the employee’s job responsibilities, working hours, salary and benefits, and notice period for termination.
Employment agreements in Malaysia can be either fixed-term or indefinite-term. Fixed-term contracts specify the duration of employment and the end date, while indefinite-term contracts do not have an end date and can be terminated by either party with sufficient notice with an Employment Termination Letter.
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Here are all the different steps to hire an employee.
Determining your hiring needs is an important first step in the process of hiring an employee in Malaysia. This involves defining the job responsibilities, requirements, and qualifications for the position you are looking to fill. This information is essential for attracting the right candidates, making informed hiring decisions, and ensuring that the employee you hire is a good fit for your organization. When determining your hiring needs, consider factors such as the skills, experience, and qualifications required for the role, as well as the specific needs of your business and the cultural and organisational fit with your existing team. It’s also important to consider any industry-specific regulations and requirements, as well as the salary and benefits that you are able to offer. By taking the time to clearly define your hiring needs, you can ensure that you attract the right candidates and make the best hiring decisions for your business. You may write an Employment Offer Letter in order to make sure all candidates are aware of your hiring needs.
Sourcing candidates in Malaysia can be achieved through various channels, including online job portals, recruitment agencies, and professional networks. The best approach for your business will depend on the type of role you’re looking to fill, as well as your specific hiring needs and budget. Online job portals, such as Jobstreet and Indeed, are a popular option for many employers, as they allow you to reach a large pool of candidates quickly and easily. Recruitment agencies can also be a valuable resource, especially if you are looking to fill specialized roles or need help with the screening and selection process. Finally, professional networks, such as LinkedIn, can be an effective way to find passive candidates and build your talent pipeline for future hiring needs.
ℹ️ When sourcing candidates, it’s important to have a clear understanding of the qualifications and requirements for the role, as well as the culture and values of your organization, to ensure that you attract the right candidates for the job.
