Law On Fixed Term Employment Contracts In Malaysia

It is common practice for employers to hire employees under fixed term contracts in Malaysia. A fixed term employment contract is a contract for a specific period of time only. An employer's primary intention in offering a fixed term employment contract is usually so that the employer does not have to commit to the permanent employment of the incoming employee. However, employers should be mindful that the Courts may enquire whether a particular fixed term contract is in fact a permanent contract in the event of an unfair dismissal claim in the Industrial Court brought by the employee. This question and dispute usually arises when the employer does not renew the employee's fixed term contract. This article will set out the industrial relations legal principles on fixed term employment contracts.