What type of employment agreements does Horizons offer in Malaysia?



Modified on: Thu, 7 Aug, 2025 at 2:28 PM

In Malaysia, Horizons offers two types of employment agreements to accommodate different employment needs.


Unlimited Contracts
These are standard contracts used for both full-time and part-time employees:

  • Used for ongoing employment without a predefined end date

  • Suitable for long-term roles

  • Termination follows required legal procedures


Fixed-term Contracts
These contracts are less commonly used and are applicable for a defined employment period:

  • No maximum duration is set by law

  • Contracts can be renewed

  • Excessive renewals may result in reclassification as an unlimited contract by the Labor Court

  • Termination is only valid at the expiry date stated in the contract


Can an Employment Agreement Be Signed After the Start Date in Malaysia?
Yes, in Malaysia, it is legally acceptable to sign an employment agreement after an employee’s start date. However, there are important conditions to keep in mind:

  • The agreement must be signed within 30 days from the employee’s start date

  • It is strongly recommended to finalize and sign the employment contract before the employee begins work

  • This helps avoid potential disputes over employment terms

  • If signed after the start date, the contract is still valid as long as it is completed within 30 days of the employee’s first day


Stamp Duty Requirement for Employment Contracts in Malaysia
Starting 1 January 2025, the Inland Revenue Board of Malaysia (LHDN) has introduced a stamp duty per copy for employment contracts, in accordance with Item 4, First Schedule of the Stamp Act 1949.


What This Means for Employers and Employees
All employment-related documents—including original contracts, amendments, and termination agreements—must be stamped to comply with legal requirements. This applies to both physical and electronic contracts.

Stamp duty includes:

  • Original employment contracts

  • Contract amendments

  • Termination agreements

Each executed copy is considered a separate instrument and is subject to its own stamp duty.


Stamping Deadline

  • Contracts must be stamped within 30 days of signing if executed in Malaysia

  • For contracts signed outside Malaysia, stamping must be completed within 30 days of receipt in Malaysia


E-Stamping Is Accepted

  • Digitally signed contracts can be stamped electronically via LHDN’s STAMPS portal

  • No physical document submission is required if the contract is digitally signed and e-stamped


Important Compliance Notes

  • Stamp duty is mandatory regardless of contract format

  • Horizons will initiate the stamping process with local authorities and charge 25 USD per contract to cover the stamping process and fees

  • Late stamping penalties may apply if the employer fails to comply with this regulation

  • Contracts finalized and stamped on or before 31 December 2025 may be eligible for remission of stamp duty and late penalties, subject to LHDN’s guidelines


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