Commence Employment Meaning: A Guide for Employers in Malaysia

When hiring a new employee, you may come across the term "commence employment."

But what does it really mean?

As an employer in Malaysia, it is important to understand this term clearly to avoid confusion and ensure smooth onboarding.

This article will explain what "commence employment" means, why it matters, and what employers should do when an employee starts work.

What Does "Commence Employment" Mean?

"Commence employment" simply means the official start of an employee’s job.

It refers to the first day the employee begins working for your company as stated in their employment contract.

This date is crucial because it determines when an employee’s salary, benefits, and legal rights begin.

Why is the Commencement Date Important?

The commencement date of employment is important for several reasons:

Payroll Processing – The start date affects salary calculations, including pro-rated payments if the employee starts in the middle of a payroll cycle.
Employee Benefits – Certain benefits like medical insurance, EPF (Employees Provident Fund), and SOCSO contributions start based on this date.
Probation Period – If the employee has a probation period, it begins from this date.
Legal and Compliance Matters – Malaysian employment laws, such as the Employment Act 1955, recognize the commencement date for disputes or claims.

How to Define the Commencement Date in an Employment Contract?

To avoid misunderstandings, employers should clearly state the commencement date in the employment contract. Some key details to include are:

The exact start date (e.g., 1st August 2024).
Work hours and days.
Reporting location or remote work details.
Any pre-employment requirements (e.g., medical check-ups, work permits for foreign employees).

What Employers Should Do Before an Employee Commences Work

Before the employee’s first day, employers should prepare the following:

Employment Contract Signing – Ensure the contract is signed before the employee starts work.
Workstation and Equipment Setup – Provide necessary tools like a computer, access cards, and office supplies.
Onboarding Process – Arrange an orientation session to introduce company policies, teams, and job expectations.
EPF, SOCSO & EIS Registration – Register the employee with EPF, SOCSO, and EIS (Employment Insurance System) as required by Malaysian law.
Medical Check-ups (If Required) – Some industries require employees to pass a medical test before starting work.
Work Permit Application (For Foreign Employees) – If hiring foreign workers, ensure work permits and visas are approved before employment starts.

Can an Employee’s Start Date Change?

Yes, sometimes an employee’s commencement date can change due to:

Delays in visa or work permit processing for foreign employees.
Personal reasons (e.g., the employee requests to start later).
Company operational needs, such as project delays or restructuring.

If changes occur, update the employment contract and get the employee’s written agreement.

What Happens If an Employee Does Not Show Up on the Start Date?

If a new hire fails to report to work on their start date, employers should:

Contact the Employee – Check if there is a valid reason for the absence.
Give a Grace Period – Allow a short period (e.g., one to three days) before making a decision.
Consider Contract Termination – If the employee is unresponsive, you may need to revoke the job offer and find a replacement.
Refer to the Employment Contract – Some contracts have clauses on what happens if an employee does not show up on the commencement date.

By managing the employment commencement process effectively, Malaysian employers can create a positive experience for new hires and build a stronger team.

If you are hiring, make sure you have a well-planned onboarding process to help employees start their journey with your company smoothly.

Are you hiring?

Consider posting job ads on AJobThing to find the best candidates on Maukerja and Ricebowl. Start hiring today!

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