- Overview: Malaysia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Are you looking to engage and pay offshore IT developers in Malaysia?
Find out how you can make an informed decision on whether you should engage and pay employees or independent contractors using our free ‘Employee vs. Independent Contractor’ Checklist.
Designed to be used by companies engaging remote workforce in Malaysia the checklist is the best way to define why and in what cases companies should onboard new hires or convert existing contractors/freelancers into employees without missing any crucial aspects.
For a company, engaging top-of-the-line foreign talent is like having a superpower
How to engage and pay Malaysia-based developers without opening or while liquidating your own legal entity company in Malaysia?
- How to attract high-caliber global IT talent to augment your in-house team while saving costs compared to hiring inside the home country?
- How to onboard key IT minds immediately without delaying a hire date?
- How to retain the best people and become an enticing employer even that you are not Google?
What Types of Employees are There in Malaysia?
There are four types of employees in Malaysia: permanent, fixed-term, full-time, part-time. Independent Contractor in Malaysia Independent contractors in Malaysia can be engaged by:
- through a personal services company
- directly by the employing company.
This type of hire in Malaysia may be subject to misclassification entailing enormous financial risks. The factors determining and aiding proper employee classification are:
- functional instructions
- control levels
- exclusivity to a single company versus multi-project work
- entitlement to employee benefits
- entitlement to integration inside the company (communications, reporting, source and file-sharing).
Employee Misclassification in Malaysia
In Malaysia, being classified as an employee has better consequences for the worker, vastly due to all the employment law protectorate, one of key aspects is the right to claim unfair dismissal. An independent contractor should only hope for the protection of the rights from the contract. At Acumen International, we help you handle all of these challenges. We can onboard and pay your foreign IT staff on your behalf in 190+ countries with 100% legal compliance. When competing in the war for sought-after IT talent, you often wonder…
- Is it prudent to engage and pay international IT staff on my own entities in Malaysia? Is it realistic for my current goals and future opportunities?
- Or is engaging freelancers a good fit for my company?
Finding the answers doesn’t have to be complicated or time consuming.
What Our Clients Are Saying?
I’d like to share my experience dealing with Acumen International company.
Speed & responsiveness: Very prompt in response from my first enquiry about converting contractors into employees to follow up questions.
Completeness of information: I like how detailed the estimates and the transparency makes us feel more confident in knowing where the money goes to.
Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.
Quah Shen Dee,
People Success Officer
I always found Acumen International very supportive, professional and helpful. They pay salary on time and are always ready to sort out any issues that arise.
I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.
I highly recommend Acumen International to anyone that requires their services.
The Top 5 Reasons to Convert Malaysian
FREELANCERS into FULL-TIME EMPLOYEES
We’ve recently noticed an uptick in IT companies’ desire to hire the brightest minds and eliminate the risks of independent contractor misclassification in Malaysia and all over the world. But with more and more companies competing for these contractors, the more they are shying away from converting their existing freelancers & independent contractors into full-time employees.
You don’t have to be one of those companies
Here’s Out a Litigation You Definitely Would Want to Avoid…
One American company was working on a full-time basis with a Slovakian IT freelancer for approximately three years. The American HR director decided to contact Acumen International to employ this freelancer to eliminate the risk of employee / independent IT contractor misclassification in the future.
The US finance department did not approve of our offer to employ the Slovakian freelancer as it seemed higher than what they were currently paying the freelancer. An employee misclassification case did not seem imminent, so they decided not to act.
Half a year later the same company contacted us to employ the Slovakian freelancer. Our offer got approved but the freelancer refused to sign our employment agreement. In this half year, the relationship between the freelancer and the US company went sour. The freelancer decided to go to the labor authorities instead. We never heard the ultimate verdict but from communication with the HR director we understood that they risked paying the due social security taxes, vacation, severance payment and additional fines. The total claimed amount was approximately 70.000 EUR.
Together with 100% compliance, official PEO employment of a foreign person in Malaysia ensures:
- NO business risks: secured customer base and intellectual property
- On-site customer support and in-depth knowledge of local business culture
- Local managers speak your language
- Your time and money saved
- Less time spent on recruitment, evaluation, onboarding of globally distributed teams of professionals, or a learning curve
To make it easy for you to choose between the two options, we have designed our ‘Employee vs Independent Contractor’ Checklist
Hidden benefits of hiring and payrolling foreign employees vs independent contractors in Malaysia:
- Engaging and paying foreign talent via a global PEO solution is about 30% cheaper than engaging in-house
- Saves around 50% costs compared to working and paying through your own entity
- With the help of employment, employee loyalty grows by 47%, which is why you can retain the top minds long-term
- Official foreign employment eliminates 95% of legal, financial, and business risks. Also, using this service you can get the flexibility and take up more projects of different duration. You can start a bare-bones operation in with just one or a couple of employees and easily add any headcount as you move along.