Locum Agreement (Malaysia)
LOCUM AGREEMENT
Contracts Act 1950 (Act 136) | Medical Act 1971 (Act 50) | Private Healthcare Facilities and Services Act 1998 (Act 586) | Personal Data Protection Act 2010 (Act 709)
THIS LOCUM AGREEMENT is made on [Agreement Date]
BETWEEN:
(1) [Facility Name], [Facility Address], represented by [Facility Contact] (hereinafter referred to as the "Facility"); AND
(2) [Locum Name] (MyKad No: [Locum NRIC]), [Locum Profession], Professional Registration No: [Locum Reg Number] (hereinafter referred to as the "Locum").
1. ENGAGEMENT AND SESSIONS
1.1 The Facility engages the Locum to provide locum professional services at [Facility Address] for the following sessions:
[Session Details]
1.2 Clinical Scope: The Locum shall provide the following services during each session: [Clinical Scope].
1.3 The Locum confirms that they hold a current and valid Annual Practising Certificate (APC) / professional registration (No: [Locum Reg Number]) issued by the relevant Malaysian professional regulatory body and are in good standing with that body.
2. INDEPENDENT CONTRACTOR STATUS
2.1 The Locum is engaged as an independent contractor under a contract for services and is not an employee of the Facility. The Locum is responsible for their own income tax reporting to LHDN under the Income Tax Act 1967, EPF self-contributions, and professional registration renewal.
2.2 The Facility does not make EPF employer contributions or SOCSO contributions in respect of the Locum's services under this Agreement.
3. LOCUM FEE AND PAYMENT
3.1 The Facility shall pay the Locum a fee of [Locum Fee] per session.
3.2 Payment shall be made [Payment Date] upon submission of the Locum's invoice.
4. OBLIGATIONS
4.1 The Locum shall maintain the clinical standards expected of a reasonably competent practitioner in their field, consistent with the duty of care established under Malaysian law including the modified Bolam test as stated in Foo Fio Na v Dr Soo Fook Mun & Anor [2007] 1 MLJ 593.
4.2 The Locum shall maintain and complete patient records accurately in accordance with the Private Healthcare Facilities and Services Act 1998 (Act 586) regulations and the facility's record-keeping procedures.
4.3 The Locum shall maintain the confidentiality of all patient information in accordance with the Personal Data Protection Act 2010 (Act 709) and the common law duty of medical confidentiality.
4.4 Professional Indemnity Insurance: [Indemnity Insurance]. The Locum confirms that they maintain adequate professional indemnity insurance coverage for the engagement and shall produce evidence of such coverage upon request.
4.5 The Facility shall provide a safe working environment complying with the Occupational Safety and Health Act 1994 (Act 514) and shall ensure that the clinic's facility licence under the Private Healthcare Facilities and Services Act 1998 is current for the session dates.
5. CANCELLATION
5.1 Either party may cancel a scheduled session by giving at least 48 hours' written notice (by phone call confirmed in writing, WhatsApp, or email). Cancellation with less than 24 hours' notice by the Facility shall entitle the Locum to a cancellation fee of 50% of the scheduled session fee.
5.2 Cancellation by the Locum with less than 24 hours' notice shall require the Locum to use reasonable efforts to arrange a qualified replacement or to work the replacement session.
6. GOVERNING LAW
6.1 This Agreement is governed by the laws of Malaysia. Disputes shall be referred to the courts of Malaysia under the Subordinate Courts Act 1948.
Facility Representative
________________
Signature
Locum Practitioner
________________
Signature
Witness
________________
Signature
What Is a Locum Agreement (Malaysia)?
A Locum Agreement in Malaysia fixes the respective duties and entitlements of the parties to the arrangement.
Locum agreements in Malaysia are governed by the Contracts Act 1950 (Act 136) as the primary contractual framework, with professional obligations determined by healthcare-specific statutes. Medical practitioners holding locum positions must be registered with the Malaysian Medical Council (MMC) under the Medical Act 1971 (Act 50) and must hold a current Annual Practising Certificate (APC). Pharmacists must be registered with the Pharmacy Board Malaysia under the Registration of Pharmacists Act 1951 (Act 371). Dentists must hold current registration with the Malaysian Dental Council under the Dental Act 1971 (Act 51). A locum practitioner who provides services while unregistered or without a current APC commits an offence under the respective professional statutes.
The Private Healthcare Facilities and Services Act 1998 (Act 586) and its regulations govern the operation of private hospitals, medical clinics, and specialist centres in Malaysia. Under Schedule 2 of the Private Healthcare Facilities and Services Act 1998 (Amendment) Regulations 2006, a private medical clinic or specialist centre must at all times have a qualified and registered medical officer responsible for patient care. A locum agreement must therefore address the clinical governance structure and the locum's accountability during the engagement.
The distinction between a locum agreement as a contract for services (independent contracting) and a contract of service (employment) is significant for EPF, SOCSO, and income tax purposes. Most locum arrangements in Malaysian primary care are structured as contracts for services, with the locum practitioner responsible for their own EPF contributions, income tax reporting, and professional indemnity insurance.
The legal framework governing the Locum 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 Locum 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 Locum Agreement (Malaysia)?
A locum agreement is needed in Malaysia whenever a healthcare facility engages a temporary healthcare professional to provide clinical services on a non-permanent basis.
A locum agreement is required when a general practitioner (GP) clinic in Malaysia needs a registered doctor to cover weekend, evening, or public holiday sessions, or to cover the regular doctor's annual leave, medical leave, or Continuous Medical Education (CME) conference attendance under MMC CPD requirements.
A locum agreement is needed when a community pharmacy registered under the Poisons Act 1952 and controlled by a registered pharmacist under the Registration of Pharmacists Act 1951 requires a locum pharmacist to confirm the pharmacy meets the regulatory requirement of having a registered pharmacist present during dispensing hours.
A locum agreement is required when a private hospital or specialist centre regulated under the Private Healthcare Facilities and Services Act 1998 needs to fill a temporary gap in consultant specialist coverage — for example, during a permanent consultant's overseas conference or medical leave — to maintain patient care standards and comply with Ministry of Health Malaysia (MOH) licensing conditions.
A locum agreement is needed when a dental clinic regulated by the Malaysian Dental Council requires a locum dentist to maintain service continuity during the principal dentist's absence, confirming compliance with the Dental Act 1971 requirement for a registered dentist in charge.
A locum agreement is required when a company occupational health clinic (klinik kesihatan perusahaan) or panel clinic needs temporary medical officer coverage to maintain employee healthcare services, particularly in manufacturing or industrial facilities where occupational health requirements under the Occupational Safety and Health Act 1994 (Act 514) mandate certain medical surveillance programmes.
Parties in Malaysia should prepare a Locum 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 Locum Agreement (Malaysia)
A complete Malaysia locum agreement must include the following elements.
Parties and professional registration: Full legal name, MyKad number, and current professional registration details of the locum practitioner — MMC registration number and APC number (for doctors), Pharmacy Board Malaysia registration number (for pharmacists), or Malaysian Dental Council registration number (for dentists). The facility's Private Healthcare Facilities and Services Act 1998 licence number should also be stated.
Scope of locum services: The specific clinical services to be provided, the sessions (date, time, duration), the location, and the patient population. For medical doctors, the scope should specify whether the locum covers general outpatient consultation only or includes emergency management, procedures, or specialist referral responsibilities.
Locum fees: The sessional rate or daily rate in RM, the billing cycle, and the payment method. Common structures in Malaysian primary care are RM 80 to RM 150 per hour or RM 500 to RM 1,500 per session depending on specialty and location. The agreement should specify whether the rate is inclusive of all professional services or whether additional procedure fees apply.
Professional indemnity insurance: The locum practitioner's obligation to maintain adequate professional indemnity insurance with a recognised insurer (e.g., Medical Protection Society, Medical Defence Malaysia) for the duration of the engagement, as the facility's policy may not cover locum practitioners.
Clinical records and confidentiality: The locum's obligation to maintain patient records in accordance with the minimum data requirements under the Private Healthcare Facilities and Services Act 1998 regulations and the Personal Data Protection Act 2010 (Act 709), and to maintain patient confidentiality.
Independent contractor status: An express statement that the locum is engaged as an independent contractor under a contract for services, not as an employee, and that the locum is responsible for their own income tax, EPF self-contribution, and professional insurance.
Termination: The notice period for cancellation of scheduled sessions, and the procedure for emergency cancellation — particularly critical for locums covering on-call or out-of-hours services where last-minute cancellation may affect patient safety.
Additional compliance elements for a Locum 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). Locum Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/contracts/locum-agreement-malaysia
"Locum Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/contracts/locum-agreement-malaysia.
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author = {{Forms Legal}},
title = {Locum Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/contracts/locum-agreement-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}Frequently Asked Questions
Yes. A locum doctor in Malaysia should maintain their own professional indemnity (medical defence) insurance, as the engaging clinic or hospital's insurance policy may not automatically extend cover to locum practitioners. The Malaysian Medical Council (MMC) does not currently mandate professional indemnity insurance as a condition of registration, but the Medical Protection Society (MPS), Medical Defence Malaysia (MDM), and other providers strongly recommend coverage. If a patient suffers harm and sues both the clinic and the locum doctor for clinical negligence under the common law duty of care established in Malaysian cases such as Foo Fio Na v Dr Soo Fook Mun & Anor [2007] 1 MLJ 593, the locum may face personal liability for damages. The locum agreement should require the locum to produce proof of current professional indemnity coverage before commencing the engagement.
No. Under Section 12 of the Medical Act 1971 (Act 50), a fully registered medical practitioner must hold a current Annual Practising Certificate (APC) issued by the Malaysian Medical Council (MMC) before engaging in the practice of medicine in Malaysia, including locum practice. Practising medicine without a current APC is an offence under Section 32 of the Medical Act 1971, which carries a fine of up to RM 100,000 and/or imprisonment. The APC must be renewed annually by 31 January of each year and requires completion of Continuing Medical Education (CME) points as prescribed by MMC. A locum agreement should include a representation by the locum doctor that they hold a current APC and are in good standing with the MMC, and the engaging facility should verify this before the locum commences.
Locum fees paid to an independent contractor under a contract for services are not subject to mandatory employer EPF contributions under the Employees Provident Fund Act 1991 (Act 452), as mandatory EPF applies only to employees under a contract of service. The locum practitioner is responsible for their own voluntary EPF contributions under the i-Saraan self-employed scheme if desired. However, if the locum relationship is found by the EPF Board or the Industrial Court to be an employment relationship — based on the level of control, exclusivity, and integration with the facility — the facility could be liable for back EPF employer contributions with penalty interest under Section 50 of the EPF Act 1991. Locum fees are assessable as professional or business income under Section 4(a) or 4(b) of the Income Tax Act 1967 and must be declared in the locum practitioner's annual tax return (Form B).
If a locum doctor makes a clinical error in Malaysia, liability may arise in negligence under the common law duty of care, following the standard set in Foo Fio Na v Dr Soo Fook Mun & Anor [2007] 1 MLJ 593, where the Federal Court adopted the modified Bolam test requiring the doctor to act in accordance with a practice accepted as proper by a responsible body of medical men skilled in that particular art. Both the locum doctor and the engaging facility may face claims — the locum for personal negligence and the facility under vicarious liability if the court finds a sufficiently close relationship. The Malaysian Medical Council (MMC) may also investigate under Section 29 of the Medical Act 1971 and impose disciplinary sanctions including erasure from the register. Professional indemnity insurance covering clinical negligence claims is therefore essential for locum practitioners.
Locum fees received by a Malaysian tax resident practitioner are assessable as business or professional income under Section 4(a) of the Income Tax Act 1967, or under Section 4(b) as employment income if the locum relationship is characterised as employment. A locum practitioner who operates as a sole proprietor or through a private limited company (Sdn Bhd) registered with SSM declares fees in Form B or Form C respectively and files with the Inland Revenue Board of Malaysia (LHDN). Business expenses incurred in earning locum fees — professional indemnity insurance, professional registration renewal fees, and CPD course fees — may be deductible under Section 33 of the Income Tax Act 1967. For non-resident locum practitioners (those in Malaysia for fewer than 182 days in a year), fees may be subject to withholding tax under Section 107A of the Income Tax Act 1967 at the rate applicable to non-residents.
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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