A contract of service can be either oral or writing.
Where an employee begins employment with an employer for a period exceeding 1 month, the employer shall give to the employee a written statement of particulars of employment.
You can provide better terms and conditions to your employee in a contract of service but not less favorable then the minimum requirements provided in the Employment Act 1955.
A contract of service shall contain particulars of :
the names of employer and employee
the date when the employment began
the place of work or an indication of that and of the address of the employer
the title of the job which the employee is employed to do or a brief description of the work for which a person is employed
the commencement salary and where applicable other allowances and bonus
any terms and conditions relating to :
probation period
hours of work
entitlement to holidays, including public holidays
overtime pay and leave in lieu
incapacity for work due to sickness or injury, including any provision for sick pay and medical bills
EPF and SOCSO schemes
the length of notice which the employee is obliged to give and entitled to receive to terminate the contract of service or a clause on the manner in which the contract of service may be terminated.
In any circumstances, a wage period shall not exceed 1 month. Where the wage period is not specified in the contract of service, the wage period shall be deemed to be 1 month.
Where the period of notice of termination is not specified in the contract of service , the notice shall be as follows :
4 weeks notice - has been employed for less than 2 years
6 weeks notice - has been employed for 2 years or more but less than 5 years
8 weeks notice - has been employed for 5 years or more
A written contract of service with particulars of the terms and conditions must be given to all employees on or before the commencement of an employment.