EOR Services Thailand | Employer of Record Services Thailand

Why Hire in Malaysia?

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Capital City

Kuala Lumpur

Currencies

Malaysian ringgit
(RM, MYR)

Population size

32,730,000
(est. 2020)

Languages spoken

Malay

Why hire staff in Malaysia?

Cost-Effective Labor : Malaysia typically has lower labor costs compared to many Western countries, making it an attractive option for businesses looking to optimize their budget.
Skilled Workforce : Malaysia has a growing pool of skilled professionals, particularly in sectors like IT, engineering, and manufacturing. The country boasts a strong education system that produces a competent workforce.
Multilingual Proficiency : Many Malaysians are multilingual, with proficiency in English, Malay, Chinese, and Tamil, which can facilitate communication in diverse business environments.
Strategic Location : Situated in the heart of Southeast Asia, Malaysia serves as a strategic hub for businesses looking to expand into the region, providing access to emerging markets.
Government Incentives : The Malaysian government offers various incentives for foreign investors and businesses, including tax breaks and grants, particularly in technology and manufacturing sectors.

Our Services

Recruit Talent

Our recruitment service manages the entire process: planning, searching, screening, and evaluation, ensuring a seamless hiring experience.

Onboard Contractors

We handle hiring, onboarding, compliance, and payroll for contractors, letting your business tap into global talent for growth.

Run Global Payroll

Managing payroll across jurisdictions is complex and costly. We ensure timely, reliable payments for your employees and contractors worldwide.

Labor laws in Malaysia

Working Hours

Malaysia Employment Act, where the law allows that, by agreement between the employers and employees, the number of hours of work on 1 or more days of the week is less than 8 hours (for instance, some workers are required to work half day on Saturday or some not even needed to work on Saturday), the limit of 8 hours may be exceeded on the remaining days of the week, provided that no employee shall be required to work for more than 9 hours in 1 day or 48 hours in 1 week.

Break

Malaysia Employment Act provides that an employee shall not be required under his contract of service to work more than 5 consecutive hours without a period of leisure of not less than 30 minutes. Moreover, not more than 8 hours in 1 day also more than a spread over a period of 10 hours in 1 day lastly not more than 48 hours in 1 week. Every employee shall be allowed in each week a paid rest day of one whole day as may be determined from time to time by the employer.

Overtime

The Employment (Limitation of Overtime Work) provides that the limit of overtime work shall be a total of 104 hours in any 1 month. This means an average of about 4 hours in 1 day. The employers must be mindful that they must not require any employee under any circumstances to work more than 12 hours in any one day.

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Benefits and Leave in Malaysia

Annual Leave

8 days per year for employees who have worked 1-2 years.
12 days per year for those who have worked 2-5 years.
16 days per year for employees who have worked longer than 5 years.

Those who have worked for less than a year are not eligible for paid leave unless they leave the company in which case their paid leave will be prorated. For example, the employees who have worked for 6 months and are leaving the company are eligible for 4 days of paid annual leave.

Sick Leave

14 days per year if employed for 1-2 years,
18 days per year if employed for 2-5 years,
22 days per year if employed longer than 5 years.

The illness should be confirmed by the medical practitioner, medical officer, or dental surgeon. At the same time, the employees should inform their employers on sick leave during 48 hours after commencement or be deemed absent from work without reasonable excuse.

If the illness is more serious and requires hospitalization, the employees receive 60 days of paid sick leave in total, notwithstanding the period of employment.

Maternity Leave

Optional Leave Entitlements

Compassionate or bereavement leave: usually granted for 1-3 days.
Marriage leave: may be granted for 1-3 days.

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Termination in Malaysia

Notice of termination of contract

4 weeks’ notice if the employee has been so employed for less than 2 years on the date on which the notice is given.
6 weeks’ notice if he has been so employed for 2 years or more but less than 5 years on such date.
8 weeks’ notice if he has been so employed for 5 years or more on such date.

Termination of contract without notice

Either party to a contract of service may terminate such contract of service without notice or, if notice has already been given by section 12, without waiting for the expiry of that notice, by paying to the other party an indemnity of a sum equal to the number of wages which would have accrued to the employee during the term of such notice or the unexpired term of such notice. Either party to a contract of service may terminate such contract of service without notice in the event of any willful breach by the other party of a condition of the contract of service.

Termination of contract for special reasons

Dismiss without notice the employee.
Downgrade the employee
Impose any other lesser punishment as he deems just and fit, and where a punishment of suspension without wages is imposed, it shall not exceed a period of two weeks.

For an inquiry above, the employer may suspend the employee from work for a period not exceeding two weeks but shall pay him not less than half his wages for such period. Provided that if inquiry does not disclose any misconduct on the part of the employee the employer shall forthwith restore to the employee the full number of wages so withheld.