• Expiry of a fixed term

Automatic COS = “any agreement, whether

• Completion of a specified task S2 of the oral or in writing and whether
• Employee resigns Employment express or implied, whereby one
• Mutual agreement Termination
• Retirement Deliberate Act person agrees to employ another
COS as an employee and that other
• Death • Liquidation • Frustration of contract agrees to serve his employer as
• Bankruptcy • Closure/Sale of • Illness/permanent Consequential an employee and includes an
Relevant sect
business incapacity apprentice contract”
• By behaviour • Misconduct Breach of
• Essential term is contract EMPLOYMENT LAW
breached
Contract of employment: contract between
Remedies: • When employee’s service Unfair or wrongful
- Monetary compensation is not terminated in dismissal
- Reinstatement accordance with the law Employee Employer
Definition
Definition
Differences between COS and CFS 1. A person who has entered a contract of
1. Any person included in any category of the 1st schedule; service to engage an employee
• Any person who enters into a contract of service with an 2. Includes the person’s agent, manager or
Contract of Service Contract for Service
employer and whose wages do not exceed RM1,500 per factor
Has an employer-employee Has a client-contractor month
relationship relationship • Any person, irrespective of the wages earned per month,
who enters into a contract of service with an employer Duties
Employee does business for A contractor does business
employer on their own 2. Any person in respect of whom the Minister makes and
order under sub-s (3) s.2A
Covered by Employment Act Not covered by
to provide
Employment Act
Duties safe pay the employee
Have benefits such as Statutory benefits do not working as agreed in the
working hours and sick apply conditions contract
leaves. To take care when To give faithful and Obey to the employer’s
Employer is responsible for Client has no performing his work honest service reasonable direction
paying EPF and SOCSO for responsibilities of paying
employees EPF and SOCSO for
Do not to not undermine the trust
contractor
No conflict No reveal and confidence of the
Wages are paid Wages are paid in a lump with secret confidential employee
continuously sum interest profit information