How to Hire an Employee in Malaysia?

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.

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. 

Screening candidates is an important step in the process of hiring an employee in Malaysia. This involves reviewing resumes, conducting initial phone screens, and conducting in-person interviews to ensure that the candidates meet the qualifications and requirements for the role.

1. During the screening process, it’s important to assess a candidate’s experience, skills, and qualifications, as well as their cultural and organisational fit with your business.

2. You may also consider conducting reference checks, background checks, and other relevant screenings to obtain a comprehensive view of the candidate’s suitability for the role.

3. It’s important to comply with local labor laws and regulations during the screening process, including the Personal Data Protection Act 2010 and the Employment Act 1955, which prohibit discrimination based on race, gender, religion, and other protected characteristics.

Checking work eligibility is a crucial step in the process of hiring an employee in Malaysia. All foreign workers must obtain a valid work permit before they can start work in the country, and it is the responsibility of the employer to ensure that their employees comply with local labor laws and regulations. To obtain a work permit, the employee must first be offered a job by a Malaysian employer and then apply for the permit through the relevant government agencies. The employer must also provide supporting documents, such as a letter of offer and proof of the employee’s qualifications, as well as comply with any additional requirements or procedures specified by the relevant agencies. It’s important to note that work permit requirements may vary depending on the type of work and the employee’s country of origin.

Offering employment in Malaysia is a crucial aspect of building a successful business in the country. The country has a large and diverse pool of talented and skilled workers, making it an attractive location for companies looking to hire. To offer employment in Malaysia, companies must follow the country’s labor laws and regulations, which are in place to protect the rights of workers. This includes providing fair wages, safe working conditions, and opportunities for professional development. Companies must also consider the cultural differences and expectations of the local workforce, which may require them to adapt their HR policies and practices. With its favorable business environment, skilled workforce, and supportive government, Malaysia is an ideal location for companies looking to offer employment opportunities to talented and motivated individuals.

Onboarding and integration are important processes for companies.

In conclusion, hiring employees in Malaysia requires a strategic and well-planned approach to ensure success. Companies need to consider the country’s diverse labor force, cultural differences, and government regulations when recruiting and onboarding new employees. By offering a comprehensive onboarding and integration program, companies can help new hires acclimate to their new work environment and become productive members of the team. Additionally, by investing in their employees’ professional development and creating a supportive and inclusive workplace, companies can increase employee engagement and retention, leading to improved performance and a more productive workforce.