FAQEmployer of Record BasicsWhat is the process of transitioning employees from MalayHire to your own Malaysian entity later?
What is the process of transitioning employees from MalayHire to your own Malaysian entity later?
Last updated: May 15, 2026
When you are ready to transition
Many companies use MalayHire as a bridge while they incorporate a local Malaysian entity. Once your entity is registered and ready to employ staff, MalayHire can support a smooth handover of employment. We recommend initiating the transition process at least 30 days before your target date to allow time for contract re-issuance and statutory transfers.
The transition process
The typical steps are:
- Notify MalayHire of your intention to transition and the target date
- Your new entity issues a fresh employment contract to the employee, which the employee signs
- MalayHire terminates the existing employment relationship — this is a mutual termination and does not trigger redundancy entitlements provided it is handled correctly
- EPF, SOCSO, and EIS registrations are transferred to your new entity's employer number
- MalayHire issues a final payslip and any outstanding statutory filings are completed
- Your entity takes over payroll from the agreed date
MalayHire will provide guidance throughout. The employee's continuity of service is preserved in the new contract to protect their statutory entitlements.