Hiring in Malaysia

Maylasia’s relatively affordable labor costs, multilingual workforce, and strong infrastructure make it an attractive country for hiring. But it’s important to understand its many employment regulations and customs before hiring there. Employment relationships in Malaysia are governed by such laws as the Employment Act of 1955, along with subsequent amendments and the Industrial Relations Act. These laws outline workers’ rights, employer obligations, and procedures for labor disputes.  

Additionally, Malaysian law places specific regulations on the use of temporary and agency workers. Staffing agencies can provide workers to third-party companies only in cases of temporary, occasional, or transitory tasks. Employers must ensure that these arrangements comply with legal requirements and that agency workers receive equal treatment in terms of compensation and working conditions. Employers are required to provide written employment contracts detailing terms and conditions, including job responsibilities, compensation, working hours, and benefits. Compliance with statutory requirements such as minimum wage standards, social security contributions, and working time regulations is essential.

Because of the complexity of Malaysia’s labor and tax laws, compliant employment contracts are a critical business requirement. With Safeguard Global as your partner, you can hire employees in Malaysia with confidence, knowing that every contract meets legal standards. We also provide guidance on cultural expectations and hiring best practices, while helping you stay current with regulatory changes.

Relying on an employer of record (EOR) in Malaysia

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Malaysia. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Malaysia’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Malaysia. 

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization. 

Visit our employer of record services page to learn how we can help you meet your international employment needs in Malaysia.