letter of employment malaysia

Sample Employment Letter Malaysia

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Things You Should Know about Employment Confirmation Letter in Malaysia

By administrator | 05 Jul 2022

Although we hear this more often than not – read the official letter that the company has offered you and take your time to go into the details, chances are you have not gone through every line before signing.

What is the purpose of employment confirmation letter in Malaysia ?

An employment confirmation letter in Malaysia is not the same as an offer letter, despite the fact that many would mistake the purpose of the two. An offer letter is an unofficial statement of the proposed wage and condition for the job position that is offered by the company. Once the candidate accepts the offer, they are in a legally binding contract of employment. That is when an employment confirmation letter serves the purpose to set wages and length of employment in a legally binding stone.

It is mandatory that employers issue an employment confirmation letter in Malaysia . In Malaysia, any employment that lasts longer than one month has to be formalized through a written contract. The main purpose of doing so is to avoid uncertainty or misunderstanding. The employment confirmation letter is often referred to as the contract of employment, where clarification on the terms of employment should be included. This covers all type of employees working under a contract of employment, including full-time, part-time, fixed-term, and casual staff.

Labor Law on employment confirmation letter in Malaysia

You might already know this but – not all employees are covered by the Employment Act 1955 in Malaysia. The labor law governs employment of employees with wages less than RM1,500 (as of 2022), whereas employees with wages exceeding the threshold shall be abided by the company policies and signed contract. Therefore, it is particularly important for candidates to go through an employment confirmation letter and ask questions if there is any mismatch with the oral agreement or where expectation is not met.

Little-Known Things about employment confirmation letter in Malaysia

A well-written employment confirmation letter would have all the essential details regarding the job for your reference (that we will have the outline covered later in this article). However, it is the nuances that induce the uncertainties in your mind. Here are some less-known facts about employment confirmation letter in Malaysia that we have gathered for you.

You CAN negotiate after signing an employment confirmation letter.

The bright side of following company policies is that at times they are more flexible than you expected. However, any negotiation should be conducted on a reasonable ground and with extra caution. The company reserves the right to change any rules as you sign the company contract (again, make sure you read through the terms!) Therefore your request would depend on the employer’s decision.

You CAN legally work for the company’s competitor after resigning.

A clause about “non-competition” or “restriction of trade” is often included in the company contract. However, there is yet written law in Malaysia that specifically considers such behavior as a crime. There is room for debate as one should not be prohibited to exercise a lawful profession, trade, or business of any kind as per stated in Contract Act 1950. Nevertheless, you are obligated to act at goodwill and maintain a good relationship with the company you resigned from.

Companies CAN sue you if you forfeit a signed employment confirmation letter.

Unlike an offer letter, an employment confirmation letter in Malaysia is a legally binding contract. Although it does not mean that every company would go after whoever declined the job after signing the employment confirmation letter, they reserve the right to take legal actions against those who caused nominal damage (e.g., recruitment cost loss). Never sign an employment contract light-heartedly or without going through the legal consequences of turning down the job after officially agreeing to the offer.

Outline of an employment confirmation letter in Malaysia

An employment confirmation letter in Malaysia should include the following information:

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Job Offer Letter Sample & Template + Tips | Complete Guideline 2023 in Malaysia

Commonly, we have trained our eyes to skip or view any sort Terms and Agreement (T&C) be it in an app or signing up for an account.

When it comes to job offer letter, unfortunately, most employee-to-be went for the same practice, which is actually like this:

Sorry, this image may be too extreme. However, I think you can kind of imagine that neglecting to check your offer letter or making an offer letter inappropriately is extremely serious .

To prevent this from happening, this article describes 4 things that you should pay special attention to when reviewing offer letters.

If you need a template or sample offer letter, you can download it from the link below.

Google Docs Link of Offer Letter Template

Are you ready with our template? Okay, let's begin! *In this article, we will refer to the employer/HR as Employer and the candidate/job seeker as Candidate.

#1 Always Check The Dates and Times

The first point is the specific example where miscommunication becomes the cause of the chaos.

Some people do not plan out or do not include their personal schedule when negotiating the dates and times of joining the new company.

However, it may frequently happen that neither the Employer nor the Candidate anticipates this situation .

Alex agreed to join the company on June 1st at the interview. However, when he went home and looked over his schedule, he found that he was scheduled to travel from June 10 to June 14. He hasn't bothered to tell HR about the trip because he thought it would make a bad impression on him, but tomorrow was the start date already... What should he do now?

Obviously, Alex should have made an early adjustment to the start date, but it was difficult for him to find the best solution on his own.

This is where the importance of reconfirming the start date in the confirmation of the offer letter comes into play.

Employers should re-check with the candidate when issuing the offer letter to ensure that the start date is optimal.

Also, when reading the offer letter, the candidate should check the date carefully and if any changes are needed, this is the best time to start readjusting with HR .

#2 Job Responsibilities - can really perform?

Before issuing a job offer letter, or signing on the document, please always remember to go through the job responsibilities .

Always consider the stated job responsibilities in an offer letter as the final version, after weeks of negotiation and discussion during interviews.

Make sure to cross-check and identify any changes in the job descriptions, from the moment the job being advertised, up until they issue the offer letter.

If so, do you see it's fair level or not? Are the revisions discussed throughout the interview process?

Now, let me explain why I put so many questions in a row.

First of all, if you are an employer, "adding unexplained job responsibilities" may cause you to lose the trust of the candidate and, in the worst case, break the deal.

Secondly, if you are a candidate, the more unexplained job responsibilities you have, the more unmanageable the job may be . In other words, there is a possibility of danger.

#3 Basic Salary - Check if it's CORRECT

Salary is always a deal-breaker in every job offer negotiation.

The questions always pop-up in interviews or during any discussion throughout the process of the hiring.

However, it usually been kept unclear and confidential until the offer letter is officially issued. Then its a matter to choose or re-negotiate which always break the terms between both parties.

It's exactly the same as the previous section, but since hiring is really the first step in starting to build mutual trust , it's important to honestly state from the beginning the mutually acceptable salary that was agreed upon in the negotiations (it's important for the candidate to check it carefully and sign it).

Each of these communications will eventually lead to a smooth on-boarding process, and the strengthening of the organization will be complete.

#4 Benefits (allowances, perks)

Do you have an enough understanding about perks and benefits? if not, please read this Perks & Benefits article right now to know what's the common practices in 2023 .

Even in the job market, hiring company compete to provide the best perks and benefits they can come up with to ensure they secure top talent for their organizations.

Relatively, some people do not look much into the monetary factor when switching job. They would instead find a company who can provide them with work benefits that can help them to have more excellent mental health and work-life balance.

Perks and benefits such as work from home, flexible working hours or extra annual leave might be a tie-breaker whether they sign the offer letter or otherwise. Always ask yourself what you are seeking for your next career move and include perks and benefits as part of the consideration.

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Job Offer Letter vs Employment Contract

An applicant can receive a job offer in a variety of ways. Some employers will provide a "job offer letter" outlining the basic terms, followed by an employment contract outlining the finer points.

For some, there is no "job offer letter," and the candidate is simply asked to sign an employment contract. In some cases, the document is referred to as a "job offer letter," yet it contains specific provisions similar to a contract.

Leaving aside labels, what matters is whether a legally binding employment relationship has been established or not.

What happens when an employee signs a job offer letter, begins work and then is handed a contract with different terms?

One example is the case of Tadjul Maulud bin Zoor v CRSM Construction (M) Sdn Bhd .

The Claimant was offered the post of Project Architect at the Company following an interview. The Claimant requested that a Letter of Offer be issued to him so he might be released from his former job earlier.

The Company sent him a Letter of Offer, which he signed on January 13, 2020. The Letter of Offer only stated the basic details of his job, such as his start date, starting salary, and position.

The Claimant began work, but in July 2020, the Company issued him an Employment Contract, which will replace and supersede the Letter of Offer.

The conditions of the Employment Contract were not acceptable to the Claimant. According to the Employment Contract:

The Claimant's employment was for a particular construction project (Ampang 3rd Avenue) and for a set period (1 year).

If the construction project is finished early or construction is halted, the employment will be terminated automatically.

The employee declined to sign the employment contract.

The Claimant's employment was then terminated with one month's notice by the Company. The reason given in the termination notification was that the parties could not reach an agreement on the Employment Contract.

The Claimant claimed he was fired unfairly.

The court's decision

A job offer letter is an employment offer from an employer to a prospective employee that does not constitute the start of employment. The employment contract will take precedence over the job offer letter if it is issued after the job offer letter.

Parties may purposefully agree to exclude or contradict what was contained in the job offer letter in the new employment contract.

It is presumed that the employment contract considers what was already provided in the job offer letter if it does not mention some of what was agreed in the job offer letter unless the employment contract specifies that it intends to cancel everything agreed upon between the parties.

According to the evidence, the Company's standard operating procedure was to issue employment contracts with detailed terms first, rather than an offer letter. However, the Claimant requested for the Letter of Offer to be produced so that he might get an early release. To acquire employment with the Company, the Claimant was always aware that he would need to sign an Employment Contract first.

The Court determined that the Letter of Offer was never intended to be a full agreement as it only outlined the key clauses. Other significant terms agreed upon by the parties during the interview were to be formalised via an Employment Contract.

The Letter of Offer did not address many employment terms, such as yearly and medical leave, bonuses, etc. As a result, the Letter of Offer cannot stand alone. As a result, it was reasonable that the Letter of Offer should be followed by an Employment Contract that included all essential contractual elements.

According to witness testimony, the Claimant was fully aware of the contested terms during the interview. For example, he was aware that he would be assigned to the Ampang 3rd Avenue development project for the Company.

During the interview, the Claimant was also informed that the nature of the Company's business was entirely dependent on projects given by the Malaysian government, and his employment would be on a fixed-term basis and/or depending on the completion of the project. This was true for all employees in the Company, not just the Claimant.

The Claimant's unwillingness to sign the Employment Contract supported the Company's decision to fire him. Accordingly, the Court denied the Claimant's allegation of wrongful termination.

What can we learn from this case?

This disagreement occurred due to an alleged contradiction between the Employment Contract and the Letter of Offer. In this case, the Claimant claimed that material provisions (for example, the nature of his employment as a fixed-term contract) was not indicated in the Letter of Offer but were unexpectedly incorporated in the Employment Contract.

The evidence established that the Company informed him of these provisions during the interview. It also said that the Letter of Offer was always intended to be brief as it was only supplied to allow the Claimant to ask for an early release.

Employers who use a "two-document" recruitment procedure (i.e., a Letter of Offer followed by an Employment Contract) should be aware that inconsistencies between the two papers can lead to disputes. If a two-document approach is employed, employers should guarantee that both documents are supplied to employees before starting employment.

This way, any issues concerning the terms can be settled before the candidate begins employment. Employers are spared the unpleasant predicament of an employee who has already started work but refuses to sign an employment contract.

Employers should also examine if having two documents to reflect the employee's terms of employment is even necessary. It is appropriate to simply deliver the employment contract to the candidate after making a job offer rather than preparing a separate "offer letter" with summarised terms first.

Source: Donovan & Ho

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Writing job offer letters: The ultimate guide for HR

So, your quest in finding the perfect candidate is finally complete; after vetting through hundreds of applicants and conducting multiple interviews with shortlisted candidates.

The next important step is to seal the deal, by officially offering the lucky candidate the position through a formal offer letter. An offer letter is the beginning of an employment relationship, therefore it is crucial for you to draft it with a positive note. In addition, it acts as a legal document for employment so be sure that the terms and conditions outlined in the letter are what you and your company can represent.

Types of offer letter

Generally, job offers these days are delivered in two ways; an informal soft copy version send through an email where the message is clearly delivered in the email body itself, or a formal version drafted on a proper hard copy paper as the official offer letter and presented to the candidate in person. Either way, the objective of the offer letter is to confirm the employment and officially secure your candidate.

Tips on writing an offer letter

Under normal circumstances, you would have verbally informed the chosen candidate on the offer, discussed the terms and negotiated your final offer prior to drafting the letter. This would make it easier for you to set the tone and outline some of the important points in your offer letter. The content of each offer letter may vary depending on the position, job description, the type of employment, remuneration range, benefits coverage and work schedules.

Nevertheless, a standard offer letter (regardless on the types of offer letter) would look like the sample below and cover most of the following important information:

This format, which covers most of the important elements in a typical offer letter, is suitable for positions ranging from low to mid-level and for jobs that have a decent range of salary, benefits and other standard terms. However, if you do require a more complicated or extensive version than this standard format, always consult your employment law attorney to best protect your interest and to ensure that your company abide by the local employment law.

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