HR Myth #15: “Let’s just copy a contract online ; no need to pay for HR templates.”

October 27, 2025

Employee Perspective

“The contract looked fishy, the offer came in a simple Word doc no company logo, no letterhead”

“Typos & clauses were general, like copied from somewhere.”

“It stated work hours as 48/week but I thought Malaysia’s limit was 45 hours?”

“Nothing about my probation, bonus, EPF or even how I’d get paid, when I asked for clarification, they just said, ‘This is our standard template, just sign it.”

Employer Perspective

“Why pay for something I can download for free?”

Many businesses or HR teams think…
“A contract is just paperwork, no need to complicate it, we found one online, good enough.”

“If anything goes wrong, we’ll just sort it out with common sense.”

Here’s what happens with generic, outdated contracts with Titanic Epic sized Icebergs!

⚠️ You accidentally break Malaysian labor law, Statutory Authorities come knocking
👩‍⚖️ You lose in court or tribunal on technicality
😡 Staff misunderstand their entitlements
🤦‍♂️ You risk disputes over salary, OT, termination, benefits

The Truth :

Contracts aren’t about formality they’re PROTECTION

A solid, legally compliant employment contract
✅ Protects your business in case of disputes
📌 Sets the right expectations from day one
🛡️ Acts as evidence in case of legal claims
🤝 Builds trust with employees, shows you’re serious and transparent

What businesses should include in a proper employment contract

1️⃣ Working hours, probation and leave entitlements

Must follow the latest Employment Act at minimum, 45-hour workweek limit, annual leave, etc

2️⃣ Salary breakdown

Basic salary, allowances, OT rates, bonus eligibility

3️⃣ Termination and resignation terms

Notice period, dismissal procedures, and any non-compete clauses

4️⃣ Statutory obligations

EPF, SOCSO, EIS, and compliance with EA 1955 (amended)

5️⃣ Customized clauses relevant to your business

Confidentiality, remote work rules, training bonds, etc.

A Real Example :

I was asked to review an employment contract and obviously it was ChatGPT’d or downloaded somewhere.
The clause on commissions was vague “Subject to management approval” no clarity, six months later, a dispute arose over RM8,000 in unpaid commissions.
Fortunately, the employee was kind enough to discuss & the company made amends.
If it went to the Labor Office, penalties, legal advice & the staff’s compensation would have cost more.

Good thing is, they now use contracts prepared by a qualified HR consultant.