ADVERTORIAL
Malaysia Foreign employers
employees. New guidance from the Supreme People’s Court confirms that non-compete clauses should only apply to employees with genuine access to trade secrets or confidential information, regardless of what an employment contract states. The updated interpretation also requires that restrictions on duration, geographic scope and business activities be proportionate to the information being protected. Employers must be able to demonstrate that an employee had actual access to confidential information, while standardised non-compete clauses applied across an entire workforce may now create unnecessary compliance risks. China Briefing from Dezan Shira & Associates examines the new judicial guidance in detail, and encourages employers - particularly foreign- invested businesses - to review existing employment contracts and ensure non-compete provisions align with Chinese labour law.
as project-based work or maternity cover, but employers should review these arrangements as operational requirements evolve. Continuing to renew fixed-term contracts after a role has become an ongoing business function may expose organisations to additional legal and financial liabilities if the employment relationship is later deemed permanent. In its ASEAN Briefing , Dezan Shira explores how contract choice can affect future employment obligations and why businesses should ensure their workforce arrangements continue to reflect operational reality.
expanding into Malaysia should not assume that fixed-term contracts offer a simpler or lower-risk alternative to permanent employment. Malaysian courts assess the reality of the employment relationship rather than relying solely on the wording of a contract, meaning roles that become part of a company’s long-term operations may be treated as permanent regardless of their original designation.
Fixed-term contracts remain appropriate for genuine temporary business needs, such
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ISSUE 26 GLOBAL PAYROLL MAGAZINE
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