What to handle when hiring your first employee

1. Offer and employment terms

• Role, duties and reporting line
• Start date, workplace and probation
• Pay, pay date and permitted deductions
• Normal hours, rest days and shifts
• Leave, notice and termination
• Confidentiality, equipment and data handling

2. Employee details

Collect only information needed for work and official registration, and restrict access. Verify identity, bank, address, emergency contact and statutory-registration data.

3. KWSP / EPF

KWSP explains that an employer must register when contribution responsibility begins and must handle employee membership and monthly contributions. Check current channels, forms, coverage and deadlines before hiring.

4. PERKESO / SOCSO and EIS

PERKESO states that applicable employers with one or more employees are responsible for registration and contributions. Confirm employer, employee, SOCSO and EIS setup through official ASSIST channels.

5. Payroll and payslips

• Set payroll cycle, cut-off and approver
• Record salary, allowances, overtime, unpaid leave and deductions
• Verify statutory and employer items
• Provide clear payroll statements
• Reconcile payment, payslips and ledger monthly

6. Attendance, leave and overtime

Create attendance, roster, leave-request and overtime-approval processes. Confirm applicable hours, rest, overtime and leave rights under the Employment Act and other rules.

7. Records and access

Separate employment, payroll, registration, training, discipline and leave records. Limit access and confirm applicable retention periods.

8. Exit process

• Confirm last day and notice in writing
• Calculate final pay and applicable items
• Recover equipment, access cards and accounts
• Handle statutory and tax updates
• Retain exit records and protect personal data