Learn more about Employment Certificate in Malaysia
An employment certificate is a document that verifies an individual’s employment history, job title, and period of employment with a specific company. It is often used by employees as proof of their employment when applying for renting or buying a property, or other financial services. This document can be used as a proof of employment when applying for government services, or for an Employment Application. It can help employers ensure that the document contains all the necessary information. With Themis partner, you can easily download this template in word format. Note that it is a legal requirement for employers to issue an employment certificate after the Employment Contract as it serves as a record of the employee’s performance.
What should be included in an employment certificate?
An employment certificate in Malaysia should include the following information:
➤ The name of the employee
➤ The employee's job title and responsibilities
➤ The period of employment with the company, including the start and end date
➤ A statement confirming that the employee was in good standing during the period of employment
➤ The name and signature of the employer or authorised representative
➤ The date of issuance
➤ The company's stamp or seal
It is also important that the certificate is printed on the company’s letterhead and that it is signed by an authorised representative of the company such as the Human Resource department or the immediate supervisor of the employee. The certificate should also be written in English or in the official language of the company. The information provided in the certificate should be accurate and up-to-date to avoid any confusion or legal issues in the future.
How can an employee request an employment certificate?
An employee can request an employment certificate from their employer by submitting a written request to the Human Resource department or their immediate supervisor. The request should include the employee’s name, job title, and the period of employment for which the certificate is needed. It is important for the employee to provide a clear and specific reason for requesting the certificate, such as for loan application, visa application or for future job opportunities.
ℹ️ The employee should also provide a valid address or email where the certificate can be sent to. The request should be made well in advance before the certificate is actually needed to allow enough time for the employer to process the request and issue the certificate.
What are the legal requirements when issuing employment certificates?
Employers are required to provide an employment certificate to an employee upon their employment termination. The employment certificate should include details such as the employee’s name, job title, date of employment, reason for termination, and any other relevant information as required by the employee. The employment certificate must be signed by the employer or a person authorised by the employer.
Remarks:
Employers are also required to keep records of the employment certificates issued for a minimum of 3 years. Failure to provide an employment certificate or keeping accurate records can result in penalties under the Employment Act 1955
How can it be used to verify employment history and job title?
An employment certificate can be used to verify an individual’s employment history and job title. It should include details such as the employee’s name, job title, date of employment, and reason for termination. This information can be used by future employers to verify an individual’s work experience and job responsibilities.
Additionally, the employment certificate can be used by an employee to prove their employment history for the purpose of obtaining loans, credit, or other financial services. It can also be used as a proof for an employee’s eligibility for certain benefits, such as unemployment insurance or retirement benefits.
How can it be used to apply for loans, credit, or other financial services?
An employment certificate can be used as a key document when applying for loans, credit, or other financial services. Banks and financial institutions often require proof of employment and income as part of their loan or credit application process. An employment certificate can provide this proof by showing the applicant’s job title, salary, and length of employment. This information can be used by financial institutions to assess the applicant’s ability to repay the loan or credit, and to make a credit decision.
In addition to being used as part of the application process, an employment certificate can be used as collateral for a loan. Some financial institutions may require the applicant to have an employment certificate from their current employer in order to be eligible for certain types of loans or credit products.
What are the best practices for creating and issuing an employment certificate?
Our downloadable document is written by lawyers in Malaysia who follow the local jurisdiction so that your employment certificate contains the necessary and up-to-date information. This means providing accurate information about the employee’s job title, salary, and length of employment. The certificate includes the employee’s name, identification number, and the name and contact details of the employer.
Another important practice is to ensure that the certificate is issued in a timely manner. Employees may need the certificate to apply for loans, credit, or other financial services, so it’s important that the certificate is issued as soon as possible after the employee requests it.
ℹ️ By using our template, which is in Word format, you can ensure that you have a standard document that can be easily signed by the authorised person of the company, which will avoid any fraudulent activities.
How can an employment certificate be used as evidence in a legal dispute?
An employment certificate can be used as evidence in a legal dispute in several ways. For example, if an employee is claiming for wrongful termination, an employment certificate can be used as evidence of the employee’s length of service and job performance. Additionally, it can be used to prove that an employee is eligible for certain benefits such as severance pay or long-service leave. It can also be used as evidence in disputes over salary, commissions, or bonuses. It is proof of employment history to support a claim for unemployment benefits or a loan application. It is important to note that the certificate should be issued by the employer, and be signed and stamped by them.
How long should an employer keep an employee's employment certificate on file?
An employer is required to keep an employee’s employment certificate on file for at least two years after the employee’s employment has ended. This includes both active and terminated employees. Employers should keep all the employee’s employment-related records, including the employment certificate, in a safe and secure place. This ensures that the records are readily available for reference and can be produced if needed for legal or administrative purposes. It also helps employers to adhere to the laws and regulations related to record-keeping and employment issues. It’s important to note that employers should also ensure that the records are kept up-to-date and accurate, and that they should be disposed of in a confidential and secure manner when they are no longer needed.
Word Document (.docx)