Contract of Service

A 'contract of service' is a fundamental legal agreement under Malaysian employment law, as governed by the Employment Act 1955. It establishes the employer-employee relationship and outlines the terms and conditions of employment, including wages, working hours, duties, and benefits. The Employment (Amendment) Act 2022 significantly expanded the scope of the principal Act to cover all employees engaged under a contract of service, regardless of their income, ensuring that a broader range of workers are afforded statutory protections and minimum entitlements.

Under Section 2(1) of the Employment Act 1955, a 'contract of service' is defined as any agreement, whether oral or in writing and whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his employer as an employee. This definition also encompasses an apprenticeship contract, which, following the 2022 amendments, must be for a minimum period of six months and a maximum period of twenty-four months. This foundational concept is critical as it establishes the legal relationship between parties, determining the applicability of the Act's protections and obligations. The existence of a contract of service, even if unwritten, can be presumed under certain conditions outlined in Section 101C of the Act, ensuring broader coverage for workers, including those in the gig economy.

A 'contract of service' is the foundational legal agreement governing the employment relationship under the Kenya Employment Act, 2007. It defines the rights and duties of both the employer and the employee, covering aspects such as wages, hours of work, leave entitlements, and conditions for termination. The Act applies to all employees employed under such a contract, establishing minimum terms and conditions that cannot be waived or varied to the detriment of the employee. Written contracts are required for employment exceeding three months, and employers must ensure employees understand the terms.