A contract of employment, also called a
contract of service, is a legally
enforceable agreement where the
employer pledges to pay wages in
return for the employee’s services. It is
established when the employer’s job
offer is accepted by the employee.
From then on, both employer and
employee have rights and duties which
courts can enforce. Following the
Employment (Amendment) Act 2022,
effective 1 January 2023, employment
contracts must align with revised legal
standards. The new Section 101C in the
Employment Act 1955 introduces a
“presumption as to who is an employee
and employer,” and the relevant parts
of the Contract Act 1950 also come
into play. These legal changes influence
how service contracts are enforced in
Malaysia today.