Status of an Employee After Signing Contract of Employment Prior to Commencing Work – The Position Under Malaysian Law

Abstract

This article is written with the intention of serving as a guide on this matter of some degree of uncertainty/contention. It should be borne in mind at the outset that the position of the Parties is not always ‘cut and dry’ and that it is incumbent that the scenarios that are present and the material circumstances at any point of time should be weighed against and assessed in light of all tenable and ascertainable factors. The matter addressed here is with regards to a scenario where a potential employee has signed the contract of employment but who later rejects the offer perhaps for another offer accepted prior to the date of commencement of work. The issue is whether the prospective employer may institute legal action for breach of contract.

Keywords: Malaysian Employment Law

JEL Classification: K31