Internship Agreement (Malaysia)
INTERNSHIP AGREEMENT
Malaysian Qualifications Framework | Copyright Act 1987 (Malaysia) | Contracts Act 1950
This Internship Agreement is entered into on [Effective Date]
BETWEEN:
(1) [Employer Name] (SSM No. [Employer SSM No.]) of [Employer Address] (hereinafter referred to as the "Host Employer"); AND
(2) [Intern Name] (MyKad/Passport No. [Intern IC/Passport]) (hereinafter referred to as the "Intern").
Academic Institution: [University Name] — [Academic Programme]
1. INTERNSHIP PLACEMENT
1.1 The Host Employer agrees to accept the Intern for an internship placement as [Internship Role], commencing [Start Date] and ending [End Date].
1.2 The Intern will be supervised by [Supervisor Name], who will provide guidance, mentorship, and assessment throughout the placement.
1.3 The working hours shall be [Working Hours], not to exceed 45 hours per week.
1.4 The purpose of this placement is educational — to provide the Intern with practical experience relevant to the [Academic Programme] programme as required under the Malaysian Qualifications Agency (MQA) industrial training requirements.
2. TRAINING ALLOWANCE
2.1 The Host Employer shall pay the Intern a monthly training allowance of [Monthly Allowance], payable on the last working day of each month.
2.2 The allowance is a training stipend. The internship is not an employment relationship, and the Host Employer has no obligation to make EPF contributions under the EPF Act 1991 or SOCSO contributions under the Employees' Social Security Act 1969 in respect of the Intern, unless the internship is reclassified as employment by the relevant authorities.
3. INTELLECTUAL PROPERTY
3.1 All intellectual property — including code, designs, reports, analyses, and other work product — created by the Intern in the course of the internship placement shall vest in the Host Employer upon creation, and the Intern hereby assigns all such rights to the Host Employer under the Copyright Act 1987 (Malaysia) and the Patents Act 1983 (Malaysia).
4. CONFIDENTIALITY
4.1 The Intern shall maintain the confidentiality of all client information, proprietary technology, and business data of the Host Employer encountered during the placement, and shall not disclose such information to any third party without the Host Employer's prior written consent.
5. EARLY TERMINATION
5.1 Either party may terminate this Agreement by giving 1 week written notice. Early termination for gross misconduct or serious breach of the Host Employer's rules may take effect immediately.
5.2 Upon early termination, the Host Employer will notify the Intern's university industrial training coordinator in writing.
6. GOVERNING LAW
6.1 This Agreement is governed by the laws of Malaysia, including the Contracts Act 1950 and the Copyright Act 1987.
Host Employer (Authorised Signatory)
________________
Signature
Intern
________________
Signature
What Is a Internship Agreement (Malaysia)?
An Internship Agreement in Malaysia sets out the training, supervision, and pay terms governing the trainee's engagement.
The legal status of interns in Malaysia under the Employment Act 1955 (Act 265) has not been definitively resolved by statute. Most internship placements are structured as non-employment arrangements — the intern participates to gain practical experience and academic credit, not as an employee performing services for wages. Where an internship is structured as a genuine educational placement with learning outcomes, the intern is generally not considered an employee for purposes of EPF Act 1991 contributions, SOCSO coverage under the Employees' Social Security Act 1969, or industrial relations protection under the Industrial Relations Act 1967. However, where an intern performs the same duties as a permanent employee, receives substantial monetary compensation, and is subject to the same working conditions and supervision, the Department of Labour (JTKSM) may treat the arrangement as employment and require retrospective EPF and SOCSO compliance.
Interns who receive a monthly allowance are not entitled to the National Minimum Wage under the Minimum Wages Order 2022 if the internship is a genuine educational placement rather than employment, though many Malaysian employers pay allowances of RM600 to RM1,500 per month as a matter of practice and industry norm.
The Internship Agreement should clearly document the educational purpose of the placement, the learning objectives tied to the intern's academic programme, the duration (typically 3 to 6 months corresponding to one academic semester), and the supervisor or mentor responsible for the intern's development. Intellectual property created by the intern during the placement should be addressed, as the Copyright Act 1987 default ownership rules apply to work created by interns in the same way as any other author.
The legal framework governing the Internship Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Internship Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Act 1955 (Act 265) sets the foundational requirements.
When Do You Need a Internship Agreement (Malaysia)?
A Malaysia Internship Agreement is required whenever a company hosts a student or recent graduate for an internship placement, whether for university industrial training credit or for professional development.
An Internship Agreement is needed when a company receives undergraduate students from Malaysian universities — such as Universiti Malaya (UM), Universiti Teknologi Malaysia (UTM), Universiti Putra Malaysia (UPM), or private institutions such as Monash University Malaysia or Taylor's University — for compulsory industrial training placements mandated by the MQA under the Malaysian Qualifications Framework.
An Internship Agreement is required when a law firm, accounting firm, engineering consultancy, or hospital accepts a graduate trainee or industrial trainee who requires a formal written agreement for submission to their university's industrial training coordinator as part of academic programme requirements.
An Internship Agreement is needed when a technology company or startup wishes to engage interns for software development, data analysis, or digital marketing projects, and needs to document the intellectual property ownership of any code or creative work produced by the intern during the placement under the Copyright Act 1987.
An Internship Agreement is required when the internship involves the intern accessing confidential client information, trade secrets, or proprietary business processes, making a written confidentiality clause essential to protect the employer's legitimate business interests.
An Internship Agreement is needed when an employer is engaging a foreign student intern who holds a student pass issued by the Immigration Department of Malaysia under the Immigration Act 1959/63, to document the terms of the placement for purposes of compliance with the student pass conditions.
Parties in Malaysia should prepare a Internship Agreement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Internship Agreement (Malaysia)
A valid Malaysia Internship Agreement must contain the following essential elements to protect both the host employer and the intern.
Parties: Full legal names of the company (with SSM registration number), the intern (with MyKad or passport number), and — where the university is a party — the academic institution's details.
Internship purpose and learning objectives: A statement of the educational purpose of the placement, the learning outcomes to be achieved, and the intern's academic programme (e.g., Bachelor of Business Administration, Universiti Malaya, Semester 6 Industrial Training).
Duration: The start date and end date of the internship, corresponding to the university's industrial training period. Any extension should be documented in a written addendum.
Allowance: The monthly allowance in Malaysian Ringgit (MYR/RM) and the payment date. The agreement should state whether the allowance is subject to income tax (it generally is not for amounts below RM34,000 per year) and whether EPF and SOCSO contributions are made.
Working hours and supervision: The daily and weekly working hours (recommended not to exceed 45 hours per week by reference to Section 60A of the Employment Act 1955 as a benchmark), the name of the supervising mentor, and the performance assessment schedule.
Confidentiality: The intern's obligation to maintain confidentiality of all client information, proprietary technology, and business data encountered during the placement, under the Contracts Act 1950.
Intellectual property: Ownership of work product created by the intern during the placement. The agreement should assign all copyright and other intellectual property rights in work created in the course of the internship to the employer under the Copyright Act 1987.
Termination: The grounds on which the internship may be terminated early, the notice period, and the procedure for early termination where the intern's conduct is unsatisfactory.
Additional compliance elements for a Internship Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Internship Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/contracts/internship-agreement-malaysia
"Internship Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/contracts/internship-agreement-malaysia.
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author = {{Forms Legal}},
title = {Internship Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/contracts/internship-agreement-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}
Frequently Asked Questions
Interns who are engaged in a genuine educational placement — such as compulsory university industrial training (latihan industri) under the Malaysian Qualifications Framework — are generally not classified as employees for purposes of the Employees Provident Fund Act 1991 or the Employees' Social Security Act 1969, and mandatory EPF and SOCSO contributions are not required. However, where the internship closely resembles employment — the intern performs the same duties as a paid employee, works fixed hours under close supervision, and receives substantial remuneration — the Department of Labour (JTKSM) or the EPF Board may require the employer to treat the intern as an employee and make retrospective contributions. To minimise risk, the Internship Agreement should clearly document the educational purpose and learning objectives of the placement, and the allowance should be described as a training stipend rather than wages.
The Minimum Wages Order 2022 under the National Wages Consultative Council Act 2011 sets the national minimum wage at RM1,500 per month for employees. Genuine internship placements that are classified as educational arrangements rather than employment are not legally required to pay the minimum wage. In practice, Malaysian employers pay interns monthly allowances ranging from RM600 to RM1,500 depending on the industry, company size, and the nature of the work. The Malaysian government has from time to time encouraged but not mandated a minimum intern allowance. Graduates and interns in engineering, IT, accounting, and law typically receive higher allowances (RM800–RM1,500) reflecting market norms established by major Malaysian employers including Petronas, Maybank, CIMB, and Tenaga Nasional Berhad (TNB). The allowance amount should be stated clearly in the Internship Agreement.
A company may terminate an internship placement early if the intern's conduct, performance, or attendance is unsatisfactory, or if the company's operational needs change. The Internship Agreement should specify the grounds for early termination and the notice period. Because an internship is generally not an employment relationship under the Employment Act 1955, the intern does not have the right to file an unfair dismissal representation under Section 20 of the Industrial Relations Act 1967 upon early termination. However, if the university's industrial training requirements have not been met because of the early termination, the company may be in breach of its obligations to the university under the tripartite agreement (if one exists). Early termination for poor conduct should be documented in writing with clear reasons, and the intern's university industrial training coordinator should be notified promptly.
Under Section 26 of the Copyright Act 1987 (Malaysia), the first owner of copyright in a work is the author — the person who created it. An intern who creates original work (code, designs, reports, analyses) during the internship is the default copyright owner unless the Internship Agreement contains a written assignment of copyright to the employer. A well-drafted Internship Agreement should include an express clause assigning all intellectual property rights in work created by the intern during the placement period to the employer, in exchange for the internship opportunity and allowance paid. Without such a clause, the employer holds only an implied licence to use the work for the purposes of the internship, and the intern retains copyright ownership that could be exercised after the placement ends.
Malaysian universities that require compulsory industrial training (latihan industri) typically require a written agreement or offer letter from the host employer before approving the placement for academic credit under the Malaysian Qualifications Agency (MQA) programme requirements. While the Employment Act 1955 does not specifically mandate a written internship agreement (since interns are generally not employees), a written Internship Agreement is important for four practical reasons: it documents the terms of the placement including allowance amount, working hours, and duration; it sets out confidentiality obligations to protect the employer's business information; it assigns intellectual property rights in work created by the intern; and it provides a clear framework for early termination to protect both parties if the placement does not work out.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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