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Contract Separation Agreement

Contract Separation Agreement Template for Malaysia

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Key Requirements PROMPT example:

Contract Separation Agreement

"I need a Contract Separation Agreement for a senior software engineer who is leaving our technology company amicably on March 15, 2025, with special attention to intellectual property provisions and a 6-month non-compete clause in the Klang Valley region."

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Document background
A Contract Separation Agreement is a vital legal document used in Malaysia when formally ending an employment relationship by mutual agreement. This document becomes necessary when both employer and employee agree to terminate their employment relationship under mutually accepted terms, requiring compliance with Malaysian employment laws including the Employment Act 1955 and Industrial Relations Act 1967. The agreement typically covers essential elements such as separation payments, benefits, confidentiality obligations, and releases of claims, while also addressing specific requirements under Malaysian law regarding termination benefits and EPF considerations. It serves as a crucial tool for preventing future disputes by clearly documenting the agreed terms of separation and ensuring both parties' interests are protected throughout the termination process.
Suggested Sections

1. Parties: Identifies and defines the employer and employee parties to the agreement

2. Background: Outlines the context of the employment relationship and the reason for separation

3. Definitions: Defines key terms used throughout the agreement

4. Effective Date of Separation: Specifies the official termination date and last day of employment

5. Final Payment and Benefits: Details the final salary, pro-rated benefits, and other compensation due

6. Separation Payment: Specifies any additional separation or severance payment terms

7. Return of Company Property: Lists company assets to be returned and timeline for return

8. Confidentiality Obligations: Reinforces ongoing confidentiality duties post-employment

9. Non-Disparagement: Mutual agreements regarding non-disparagement

10. Release of Claims: Mutual release of claims and liabilities

11. Governing Law: Specifies Malaysian law as governing law and jurisdiction

12. Entire Agreement: Confirms the agreement represents the complete understanding between parties

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Compete Clause: Restrictions on future employment with competitors (if applicable and reasonable under Malaysian law)

2. Non-Solicitation: Restrictions on soliciting employees or customers (if applicable)

3. Ongoing Cooperation: Terms for employee assistance in transition or future matters

4. Reference Letter: Terms regarding the provision of employment references

5. Intellectual Property Rights: Specific provisions regarding IP created during employment

6. Medical Benefits Extension: Any continuation of medical benefits post-termination

7. Share Options/Awards: Treatment of outstanding share options or equity awards

8. Legal Fees: Provisions regarding payment of legal fees for agreement review

Suggested Schedules

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of final payment including salary, leave, and other benefits

2. Schedule 2 - Company Property List: Comprehensive list of company property to be returned

3. Schedule 3 - Benefits Summary: Details of all benefits and their treatment post-separation

4. Schedule 4 - Confidential Information: Specific definition and examples of confidential information

5. Appendix A - Release Form: Detailed release of claims form

6. Appendix B - Exit Checklist: Checklist of tasks to complete before final day

7. Appendix C - Reference Letter Template: Template for agreed reference letter if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries

Financial Services

Manufacturing

Technology

Healthcare

Retail

Professional Services

Education

Telecommunications

Construction

Energy

Real Estate

Hospitality

Transportation

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research & Development

Administration

Production

Customer Service

Business Development

Compliance

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Senior Manager

Department Head

Project Manager

Financial Controller

Sales Director

Technical Lead

HR Manager

Legal Counsel

Operations Manager

Marketing Manager

Account Manager

Software Engineer

Business Analyst

Research Scientist

Administrative Officer

Production Supervisor

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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