Looks like 100% of employment contract today is 'illegal' 😂


Read here ...

https://www.freemalaysiatoday.com/category/...l-duty-ignored/

the lhdn already start audit like wolf on the prowl, get ready, lhdn already on the wild hunt

My distant cousin who owns franchise eatery. Can imagine how many staffs he has.

200 workers x 10 myr = 2k and having someone to upload it online one at a time?

Then wanna give increment? Another round of stamping?

stop hiring

Make the stamping process easier / digitize the stamping.

In the tenancy agreement between the landlord and tenant, the stamping cost is borne by the tenant. If that is the case, we can adopt the same concept here. The RM10 stamping cost should be borne by the employee annually, if there is a revision to the terms of employment.

This way, the organization does not need to worry about covering the cost of employment stamping.

Unfortunately I read that only employer can stamp the employment contract.

The employer should bear the cost of stamping, as the contract is typically prepared and executed as part of the hiring process. LHDN also considers the employer as the responsible party in the event of late payment penalties.

Not just starting employment contract. Any supporting document that amends that employment contract also applies (benefit upgrade, promotion, salary increase, resignation, etc.)



There's also penalty that's applied retroactively for 'late' stamping, which let's be real, almost apply to every single employment contract out there.

Seriously a truck load of BS. Not like the labor court / industrial court consider these documents invalid for legal purposes all this while.

Other countries employment contract where got this stamping shit one

Additional revenue to MoF....

Tax, tax and more tax.

https://www.linkedin.com/posts/simlingku_po...ing%20is%20done.
Sim Ling KU’s Post

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Sim Ling KU
Influencing HR in Malaysia | Instagram 152K | TikTok 181K #AuntyHR #BebelBimbo
1mo

POV: Stamping Employment Contracts

Lately, many people have asked: “Is stamping employment contracts mandatory?”

If we’re talking about strictly following the law… Yes, employment contracts are legally required to be stamped under the Stamp Act 1949.

But here’s my beef with the law.

That same Act says employment contracts with salaries below RM300/month are exempted from stamp duty. And guess what? That threshold hasn’t been updated since 1949. I mean, even the minimum wage has been revised five times since it was introduced in 2013. And let’s be real, no one has seen a RM300/month salary in over a decade! (remember, car salesmen >.<)

Now, here’s the important part.

In Malaysia, an unstamped employment contract is still a valid agreement between parties. It does not become void just because it’s missing a RM10 stamp. In fact, the Employment Act acknowledges even an oral agreement is legally binding.

However, the enforceability in court is affected until stamping is done. If a dispute arises and we need to enforce the contract, or defend the company using its terms, we’ll have to get it stamped at that point, along with paying a relatively small penalty.

Malaysian courts have consistently held that lack of stamping is not a fatal flaw. It’s considered a procedural issue that can be rectified by paying the duty. In the Industrial Court, the focus is still on the substantive employment relationship. Even if the contract isn’t stamped, the employment relationship exists.

So, in conclusion, an unstamped employment contract isn’t invalid – it remains as a binding agreement. But to fully enforce it legally (eg. to sue an employee for breach of contract or defend against a wrongful dismissal claim), we need to ensure the agreement gets stamped.

If you ask me whether it’s absolutely necessary, I’d say no. But if we want cover all bases and be super exact about the law, stamping contracts on time is a good practice. After all, it’s only RM10 and can now be done online – unlike back in 1949.

Thoughts?

xoxoxo, AuntyHR

Still binding.

Gosh idk this is seriously ridiculous

the problem here is, not whether legally binding ( which it is)… but the penalty that will be imposed… to what period will it be back dated?..

Not legal?
Then why many employers kena from labour office before?

if staff turnover high... practical meh?

if employer/employee decide to pursue legal action, employee oways win de... for employer, worth it meh?

all the while pursue action without the stamping... ok je...

This post has been edited by AdisonMak: May 26 2025, 08:48 PM

1 Jan 2022.. stamp rm10 no penalty
2025 b4 implementation stamp 10 + penalty waive if appeal
After implementation dun stamp will get penalty …

Tats wat my brain registered …. Details u guys better check n further share here?
Or call lhdn?


This is among some of her answers :
Melissa Lim Shi Hui
Tech lawyer ▪️Legal Educator ▪️
1mo

Great overview of the stamp duty! My advice to companies are always: here're the pros and cons (which is what you said) and what's your risk appetite? Cause you can always still stamp it later in Court (if objections were filed because of the lack of stamping) just that you need to pay penalty lo. and penalty is just % off the RM10.

If you're a small kecik mayung company, maybe you don't wanna stamp cause relationship also not so complicated, you think ok, then proceed. But some companies, from the beginning also a lot of problem already, then just stamp laaa

This post has been edited by TiramisuCoffee: May 27 2025, 12:45 AM

Found d article ... Can't cut n paste ... So u org kena klik msk..

https://www.cmglobal.com.my/malaysia-employ...ing-guide-2025/

So if employee started in 2021 and still with the company also need to stamp?

https://www.malaymail.com/news/malaysia/202...mpliance/179434