Sample Letter of Appointment

(Term Based Employment)

PRIVATE & CONFIDENTIAL

11 May 2020

Jackson James Briggs

Unit 3-1, Everest Condominium
Jalan Everest 1, Taman Everest
57000 Kuala Lumpur

Dear Jackson James

LETTER OF APPOINTMENT (TERM BASED EMPLOYMENT)

Further to your application and subsequent interviews, we are pleased to offer you the position of
Marketing Executive on a fixed term contract basis subject to the following terms and conditions:

Duration of Employment
Your employment with the company shall be for two (2) years from 1June 2020 until 31 May 2022.
The Company is not obliged to renew or extend this term based employment contract upon expiry
of the above term.

Basic Salary
Your basic salary will be RM 3,500 per calendar month.

Bonus
You shall be entitled to a one (1) month contractual bonus subject to you being confirmed in your
position. The payout date of this bonus shall be determined by the company. Additional bonuses
(if any) shall be decided at the sole discretion of the Company. You must be an active employee
at the time of the payout of the bonus. Bonus will be paid on pro-rated basis if period served is
less than one (1) year at the time of payout.

Probation
Your contractual employment shall commence with a probationary period of three (3) months.
The Company reserves the right to extend your probation period as per need. In the event you
fail to meet the expected performance level following the extension of your probationary period,
your services will be terminated at the end of the extended probation period. At the same time,
should you be serving a bond, you shall be required to refund the Company the bond amount as
mentioned in the bond clause above.

Confirmation
You shall be confirmed in your position upon issuance of a Letter of Confirmation by the Company.
There will be no salary adjustment upon confirmation. This confirmation shall not be misconstrued
as a permanent employment whatsoever. Your employment shall cease on the date mentioned
above.

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HR Consultant; [email protected]
Statutory contribution and taxes
All remuneration and bonuses earned by you shall subject to the prevailing Government
regulations.

Annual Increment
Annual increment is at the discretion of the Company based on individual performance which will
be reviewed at the end of the financial year.

Working Hours
The Company workings hours are from 9.00am to 6.00pm, Mondays to Fridays inclusive of one
(1) hour lunch break. You may be required to work additional hours including on weekends or
public holidays from time to time subject to operational needs. The Company reserves the right
to amend the working hours at its sole discretion.

Notice of Termination
During the probation period, either party reserves the right to terminate the contract of service by
giving two (2) weeks’ notice in writing or by paying two (2) weeks’ wages as indemnity in-lieu of
notice without assigning any reason whatsoever. Upon confirmation of service, either party
reserves the right to terminate the contract of service by giving four (4) weeks’ notice in writing or
by paying four (4) weeks wages as indemnity in-lieu of notice without assigning any reason
whatsoever.

Transfer
The Company reserves the right to transfer you to any departments or subsidiaries or associate
companies or other locations as required by the business within Malaysia or outside of Malaysia
with or without any additional remuneration. Such transfer shall not affect your length of service
with the company.

Annual Leave and Public Holidays

Your annual leave entitlement is twelve (12) days per calendar year and shall be on earned leave
basis. The company observes all public holidays gazetted in the state Selangor.

Sick Leave and Hospitalisation Leave

The hospitalisation leave is sixty (60) days year calendar year and inclusive of fourteen (14) days
of sick leave.

Code of Conduct
As an employee, you are expected and required to comply with all the rules and regulations of
the Company and strive to preserve the good name of the company.

Restraint
As a condition of your employment, you are required to devote your whole time, attention,
energies, skills solely to the business of the Company, and you shall not be concerned or
interested directly or indirectly in any business or work other than that of the Company.

Indemnity
In the event that after acceptance of the offer is formally received by the Company and you
subsequently decide to decline the offer or fail to report for duty on the stipulated date, you shall
be required to indemnify the Company the equivalent of one (1) month of the offered salary as
liquidated damages.

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HR Consultant; [email protected]
Intellectual Property and Company Properties
As an employee you, it shall be your responsibility to ensure all intellectual properties, information,
company intelligence and records, documents and all transactions be always kept confidentially
without divulging it to other than to any person authorized by the company.

Conflict of Interest
You will not, at any time during the period of your employment, directly or indirectly, without the
prior written consent of the Company authority, engage or involve yourself in any work or business
other than in respect of your duties to the Company, or undertake any such office or position
notwithstanding that your engagement or involvement in such office or position would interfere
with the business of the Company.

If the terms and conditions of service as stated in this offer of employment, are acceptable to you,
please confirm your acceptance by signing and returning the attached copy of this letter to the
undersigned within seven (7) days from the date of this letter.

We warmly welcome to our company and believe we look forward to a mutually rewarding
relationship.

Yours sincerely,

Peter Joseph
Managing Director

ACCEPTANCE OF OFFER

I, ......................................................... My. Kad No.: ................................................ accept this

term based employment offer and agreed to abide by the terms and conditions stipulated therein.
I agree that by my acceptance of this offer, I explicitly consent to the Company and or its
authorised agents to use my personal data for purposes relating to my employment with the
Company which shall include without limitation, processing, administrating and making payments
of my claims, salary and all such other reimbursements made to me by the Company from time
to time (if any).

I shall commence employment on............................................

…………………………………………………. ………………………….
Signature Date

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Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
Other relevant clauses

If there is no contractual bonus.

The annual bonus is paid at the discretion of the Management based on individual’s performance
and profitability of the Company. You must be a confirmed employee to enjoy the bonus pay out.
Bonuses, if any, will be paid on pro-rated basis if period served is less than one (1) year at the
time of payout.

Other option for confirmation

You shall be deemed to be confirmed in your current position at the end of the probation period
unless you are informed otherwise. You will not be issued a confirmation letter.

Position with shift work

You are required to work on 2 rotational shifts as below;
Morning Shift : 10.00am – 10.00pm
Night Shift : 10.00pm – 10.00am
The Management reserves the right to change these shift times as may be required.

Positions with overtime

You may be requested to perform overtime work periodically for which you will be compensated
at rates provided in the Employment Act 1955.

or

You will be required to perform overtime for which you will be compensated at rates provided in
the Employment Act 1955.

Tips

1. Should a company decide to adopt term based employment for flexibility purposes, it is
good to take note on the following;

1) Some employers tend to be creative by breaking down a permanent employment into

multiple term-based employment arrangement (or contract based employment is
casual terms) thinking they can end anyone at the end of the contract and to avoid
paying termination benefits.

2) Continuous extension or renewal (with or without a clear break in between such

extension or renewal) and subject to the circumstances of the position it can be
deemed to be a permanent employment as the below case law;

In Han Chiang High School vs National Union of Teachers in Independent

Schools, the teachers were engaged on annual contracts which were terminated
at the end of each year and new contracts were provided the following year. The
Industrial Court hence ruled that the teachers were employed on a permanent
basis and not on fixed term contracts.

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Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
3) Furthermore, even a non-renewal of a fixed term contract can still lead to an unfair
dismissal claim if another new employee is hired for the same function right after the
previous employee (under fixed term contract) ended his contract. The court will
examine the this from a few angels to decide is it was really a genuine fixed term
contract or otherwise.

4) What many employers do not realise is that this is not necessarily the case under
Malaysian labour law, and a non-renewal of a fixed term contract can still lead to an
unfair dismissal claim.

5) One option for employers who don’t want to take on a long term responsibility fearing
uncertain business situation in the future is to study in-depth their business direction
and do some projection and of possible a scenario planning.

It may turn out that the Company can stomach a longer fixed term contract rather than
a shorter one. For example a 4-5 year contract instead of renewing frequently a 1-2
year contract. The impact of having a long term contract is probably safer than having
a renewable short term contract. You may seek further clarification from your legal
counsel.

6) A permanent employment and a fixed term employment differentiate as below;

Permanent Fixed Term

Employment Employment
EPF, SOCSO, EIS, HRDF Levy applies? √ √
Has a retirement age? √ X
Enjoys paid leave, PH leave, Sick leave? √ √
Need to comply with EA, IR Act? √ √
When does the employment end? At retirement age At the end of the contract
Enjoys the same treatment accorded to
√ √
permanent employees?
Can seek remedy under Section 20 of the
√ √
Industrial Relations Act?

Except for the items in green everything else are the same.

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Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
This sample policy/letter/document is merely a sample or guidance. Companies are advised to
practice caution in drafting its HR documentations shall always refer to the Employment Act
and Industrial Relations Act to ensure the policy does not violate or infringe the prevailing
employment regulations. Companies are encouraged to adopt best practices to be an attractive
employer and promote productive and competitive operating landscape. The author shall not
be held liable for any damages or claims arising from the usage of the contents of this
document.

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Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]