Remote Work Agreement (Malaysia)
REMOTE WORK AGREEMENT
Employment Act 1955 (Act 265), Section 60P | Personal Data Protection Act 2010 (Act 709) | Occupational Safety and Health Act 1994 (Act 514)
This Remote Work Agreement is entered into on [Effective Date]
BETWEEN:
(1) [Employer Name] ("Employer"); AND
(2) [Employee Name], [Employee Designation], [Employee Department] ("Employee").
BACKGROUND
The Employee has applied for a flexible working arrangement under Section 60P of the Employment Act 1955 (Act 265) as amended by the Employment (Amendment) Act 2022. The Employer has approved a remote work arrangement on the terms set out in this Agreement. All terms of the Employee's existing employment contract remain in force except as expressly varied herein.
1. REMOTE WORK ARRANGEMENT
1.1 Arrangement Type: [Remote Schedule]. Details: [Hybrid Details].
1.2 Approved Remote Work Location: [Remote Work Location]. The Employee must notify the Employer in writing if the remote work location changes.
1.3 Effective Date: [Arrangement Start Date]. End Date (if applicable): [Arrangement End Date].
1.4 Core Hours: The Employee must be contactable and available during core hours of [Core Hours] on all working days, regardless of remote work location.
1.5 Working Hours: The Employee's working hours remain as set out in the employment contract. Work performed beyond the normal daily hours constitutes overtime under Section 60A of the Employment Act 1955 (Act 265) and must be authorised in advance by the Employee's supervisor.
2. EQUIPMENT AND ALLOWANCES
2.1 Equipment: [Equipment Provider].
2.2 Connectivity / Home-Office Allowance: [Connectivity Allowance] per month, payable with the Employee's monthly salary as a reimbursable expense. The allowance is subject to review by the Employer annually.
2.3 Employer-provided equipment remains the property of the Employer. The Employee is responsible for safekeeping of all employer-owned equipment at the remote location and must return all equipment within 5 working days of the termination of this Agreement or of employment.
3. DATA SECURITY AND PDPA COMPLIANCE
3.1 The Employee must access company systems using [VPN Required] and comply with the Employer's IT Security Policy at all times.
3.2 The Employee must process personal data in compliance with the Personal Data Protection Act 2010 (Act 709) — including the Security Principle (Section 9) and the Retention Principle — and must not store personal data on personal devices or unsecured storage media.
3.3 The Employee must report any suspected data breach or security incident to the Employer's IT security team immediately and in any case within 24 hours of discovery, to enable the Employer to comply with its obligations under the PDPA 2010 and to notify the Department of Personal Data Protection (JPDP) if required.
4. OCCUPATIONAL SAFETY AND HEALTH
4.1 The Employer acknowledges its duty under Section 15 of the Occupational Safety and Health Act 1994 (Act 514) to ensure, so far as is practicable, the safety and health of the Employee while performing work at the remote location. The Employer will provide ergonomic guidelines and home-office safety recommendations.
4.2 The Employee must set up the remote workstation in accordance with the Employer's home-office ergonomic guidelines and must report any work-related injury or illness occurring at the remote location to the Employer immediately for SOCSO reporting purposes under the Employees' Social Security Act 1969 (Act 4).
5. REVOCATION AND AMENDMENT
5.1 Either party may terminate this Remote Work Agreement by giving 14 days' written notice to the other party. The Employer may revoke the arrangement with immediate effect where the Employee materially breaches this Agreement, the employment contract, or the Employer's IT Security Policy.
5.2 This Agreement will be reviewed every 6 months. The Employer reserves the right to amend the terms of the remote work arrangement with reasonable notice having regard to business requirements.
IN WITNESS WHEREOF, the Parties have agreed to the terms of this Remote Work Agreement.
For and on behalf of [Employer Name]:
Authorised Signatory: ____________________________
Date: ____________________________
[Employee Name]:
Employee Signature: ____________________________
Date: ____________________________
Employer (Authorised Signatory)
________________
Signature
Employee
________________
Signature
What Is a Remote Work Agreement (Malaysia)?
A Remote Work Agreement in Malaysia sets out the rights and obligations the parties agree to be bound by.
The Flexible Working Arrangements (FWA) framework in Malaysia was strengthened by the Employment (Amendment) Act 2022, which inserted Section 60P into the Employment Act 1955, enabling employees to formally apply for flexible working arrangements — including location flexibility (remote work) — and requiring employers to respond to such requests within 60 days. An employer who rejects an FWA application must state reasons in writing under Section 60P(3) of the Employment Act 1955. A Remote Work Agreement documents the terms of an approved flexible working arrangement.
From a data security perspective, employees handling personal data under the Personal Data Protection Act 2010 (Act 709) while working remotely must confirm that processing complies with the Security Principle and the Retention Principle under the PDPA 2010 as administered by the Department of Personal Data Protection (JPDP). Employers remain the data user responsible for data processed by remote employees and must implement technical and organisational measures to protect personal data under Section 9 of the PDPA 2010.
The Occupational Safety and Health Act 1994 (OSHA 1994, Act 514) imposes a duty on employers under Section 15 to confirm, so far as is practicable, the safety, health, and welfare at work of all employees — including those working remotely. The Department of Occupational Safety and Health Malaysia (DOSH) under the Ministry of Human Resources has issued guidance indicating that employers have a responsibility to conduct ergonomic assessments or provide guidelines for home-office setup under the Occupational Safety and Health (Use and Standards of Exposure of Chemicals Hazardous to Health) Regulations 2000 and related standards.
The legal framework governing the Remote Work 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 Remote Work 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 Remote Work Agreement (Malaysia)?
A Remote Work Agreement is required in Malaysia whenever an employer approves an employee's request to work from home or another remote location on a regular or permanent basis.
A Remote Work Agreement is needed when an employee submits a formal Flexible Working Arrangement application under Section 60P of the Employment Act 1955 (Act 265) — inserted by the Employment (Amendment) Act 2022 — and the employer approves a remote work arrangement, to document the agreed terms and conditions.
A Remote Work Agreement is required when a technology company or professional services firm implements a hybrid work model — for example, 3 days in-office and 2 days remote — and needs to document the schedule, equipment provision, connectivity allowance, and performance monitoring arrangements for all participating employees.
A Remote Work Agreement is needed when an employee relocates to a different state or country while continuing employment, and the employer needs to clarify which Employment Act 1955 provisions apply, the applicable tax residence status under the Income Tax Act 1967 (Act 53), and the impact on the employee's KWSP (EPF) and SOCSO contributions under the Employees Provident Fund Act 1991 (Act 452).
A Remote Work Agreement is required when handling personal data remotely under the Personal Data Protection Act 2010 (Act 709), to document the security controls the employee must apply to protect personal data processed outside the employer's premises, reducing the employer's liability under JPDP enforcement actions.
A Remote Work Agreement is needed when an employer engages a foreign national on an Employment Pass from the Immigration Department of Malaysia, and the employee wishes to work remotely from their home country — requiring the employer to assess whether the Malaysia Digital (formerly MSC) status or Digital Nomad Pass framework applies.
What to Include in Your Remote Work Agreement (Malaysia)
A valid Malaysia Remote Work Agreement must address the following essential elements to protect both employer and employee.
Parties and Effective Date: Full legal names of the employer (with SSM registration number) and the employee, the employee's designation, and the effective date of the remote work arrangement. The agreement should specify whether it is permanent, temporary, or trial-based.
Remote Work Location: The specific approved remote work location (home address or co-working space), which is relevant for OSHA 1994 home-office safety obligations under Section 15 of the Occupational Safety and Health Act 1994 (Act 514). If the employee works from multiple locations, the policy for notifying the employer of location changes should be stated.
Work Hours and Availability: The employee's agreed working hours, core hours during which the employee must be available, and the method of logging attendance. Under Section 60A of the Employment Act 1955, employees must not work more than 8 hours per day or 45 hours per week without overtime compensation — these limits apply equally to remote work.
Equipment and Allowances: Whether the employer or employee provides equipment (laptop, monitor, internet connection), any monthly connectivity or equipment allowance payable, and the employee's responsibility for safekeeping of employer-owned equipment at the remote location.
Data Security and PDPA Compliance: The employee's obligations to comply with the employer's IT security policies, use VPN for access to company systems, and process personal data in accordance with the Personal Data Protection Act 2010 (Act 709) — including not storing personal data on personal devices and reporting data breaches within the timeframe required by JPDP.
Performance Management: The key performance indicators (KPIs), output expectations, and check-in schedule for the employee while working remotely, consistent with the performance management framework in the employee handbook.
Termination of Remote Work Arrangement: The circumstances under which the employer may revoke the remote work arrangement — including performance deterioration, business need, or amendment to the employer's flexible work policy — with reasonable notice, typically 2 to 4 weeks.
Additional compliance elements for a Remote Work 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.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Remote Work Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/employment/contracts/remote-work-agreement-malaysia
"Remote Work Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/employment/contracts/remote-work-agreement-malaysia.
@misc{formslegal-remote-work-agreement-malaysia,
author = {{Forms Legal}},
title = {Remote Work Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/employment/contracts/remote-work-agreement-malaysia}},
note = {Free legal document template. Based on Employment Act 1955 (Act 265)}
}
Frequently Asked Questions
Under the Employment (Amendment) Act 2022, Section 60P was inserted into the Employment Act 1955 (Act 265), giving employees the right to formally apply for flexible working arrangements — including remote work. However, employees do not have an absolute right to remote work. The employer must respond to an FWA application within 60 days under Section 60P(2), but may reject it with written reasons under Section 60P(3). Grounds for rejection may include operational requirements, the nature of the role, or cost. An employee whose FWA application is rejected cannot compel the employer to allow remote work — they may only challenge the rejection if the employer's refusal constitutes a breach of the employment contract or amounts to constructive dismissal before the Industrial Court of Malaysia under Section 20 of the Industrial Relations Act 1967. Prior to the 2022 amendment, remote work was governed entirely by the employment contract and employer policy.
The Occupational Safety and Health Act 1994 (OSHA 1994, Act 514) imposes a general duty on employers under Section 15 to ensure the safety, health, and welfare at work of all employees — and the Department of Occupational Safety and Health Malaysia (DOSH) has indicated that this duty extends, so far as is practicable, to employees working from home. In practice, DOSH recommends that employers provide ergonomic guidance for home-office setup, assess workstation risks, and include home-office safety in risk assessments. If a work-from-home employee sustains a work-related injury while performing their duties at the home workstation, the injury may be reportable under the Factories and Machinery Act 1967 (repealed and replaced by the Occupational Safety and Health Act amendments) and the employee may be eligible for SOCSO Employment Injury benefits under the Employees' Social Security Act 1969 (Act 4) — as the injury occurred during the course of employment.
Employees who process personal data while working remotely in Malaysia must comply with the Personal Data Protection Act 2010 (Act 709) and the employer's data protection policies. Under the Security Principle in Section 9 of the PDPA 2010, employers (as data users) must take practical steps to protect personal data against loss, misuse, modification, and unauthorised disclosure. For remote workers, this means: using a VPN to access company systems; not storing personal data on personal devices or unsecured cloud storage; using password-protected and encrypted devices; and not accessing company systems on public Wi-Fi without VPN. Employees who breach the Security Principle may be personally liable under Section 10 of the PDPA 2010, and employers may face enforcement action by the Department of Personal Data Protection (JPDP). A Remote Work Agreement should document these obligations and require the employee to acknowledge compliance.
EPF and SOCSO contributions are required for all employees covered by the respective statutes regardless of where they work — whether in the office, from home, or from a co-working space. Under the Employees Provident Fund Act 1991 (Act 452), the employer must contribute 12% (for employees under 60) or 13% (for employees under 60 with salary below RM5,000) of the employee's monthly wages to EPF, and the employee contributes 11%. Under the Employees' Social Security Act 1969 (Act 4), SOCSO contributions are required for Malaysian citizens and permanent residents in employment regardless of work location. The remote work location does not affect the employer's payroll obligations. If a Malaysian employee works remotely from overseas for an extended period, however, complex questions arise about tax residence under Section 7 of the Income Tax Act 1967 (Act 53) and potential double-taxation treaty implications that should be assessed by a tax adviser.
An employer in Malaysia may monitor a remote employee's work output, computer usage, and productivity provided the monitoring is proportionate, disclosed in the employment contract or remote work policy, and complies with the Personal Data Protection Act 2010 (Act 709). Employee monitoring tools that capture keystrokes, screenshots, or webcam images constitute the collection of personal data under the PDPA 2010 and require the employee's consent under the Consent Principle (Section 6). The employer must inform the employee of the monitoring in accordance with the Notice and Choice Principle (Section 7) before processing commences. Under the Industrial Court of Malaysia's principles on workplace privacy — developed in cases such as Ravindra Kumar Pillay v Petronas Gas Berhad [2015] 3 ILR 449 — excessive or covert monitoring may constitute a breach of the implied term of trust and confidence, supporting a constructive dismissal claim under Section 20 of the Industrial Relations Act 1967.
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
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Flexible Work Arrangement Agreement (Malaysia)
A Flexible Work Arrangement (FWA) Agreement for Malaysia documenting approved changes to an employee's working hours, days, or location under Section 60P of the Employment Act 1955 (Act 265), as inserted by the Employment (Amendment) Act 2022.
Employment Contract (Malaysia)
A professionally drafted Employment Contract for Malaysia covering position, salary, working hours, leave entitlements, termination, and confidentiality obligations under the Employment Act 1955 (amended 2022), EPF Act 1991, and Industrial Relations Act 1967.
Non-Disclosure Agreement (Malaysia)
A legally binding Non-Disclosure Agreement (NDA) for Malaysia that protects confidential business information under the Contracts Act 1950. Covers unilateral and mutual confidentiality obligations, trade secrets, proprietary data, and permitted disclosures. Enforceable by injunction in the Malaysian High Court.