The Early Release From Notice Period agreement is essential in Malaysian employment contexts where both employer and employee mutually agree to terminate the employment relationship before the standard notice period expires. This document becomes necessary when an employee needs to leave their position earlier than the notice period specified in their employment contract, or when an employer is willing to release an employee before the full notice period completion. It should comply with the Employment Act 1955 and Malaysian contract law, addressing key aspects such as final settlements, benefits calculations, and handover requirements. The agreement is particularly relevant in situations of new job offers, business restructuring, or mutual agreement to expedite the employment termination process. It provides legal protection for both parties while ensuring a smooth transition and proper documentation of the early release terms.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and registration/identification numbers
2. Background: Brief context including original employment details, notice period requirement, and reason for early release request
3. Definitions: Key terms used in the agreement including 'Early Release Date', 'Original Notice Period', 'Final Settlement' etc
4. Early Release Terms: Specific agreement on the new termination date and waiver of remaining notice period
5. Financial Settlement: Details of any payment or salary adjustment related to the early release
6. Mutual Release: Statements releasing both parties from obligations related to the notice period
7. Final Payments: Terms regarding final salary, benefits, and other entitlements
8. Governing Law: Specification that the agreement is governed by Malaysian law
1. Handover Requirements: Specific duties and responsibilities to be completed before departure - include when there are critical handover requirements
2. Confidentiality: Reinforcement of existing confidentiality obligations - include when dealing with sensitive positions
3. Garden Leave: Terms of any garden leave during the shortened notice period - include when applicable to senior positions
4. Outstanding Leave: Treatment of any accrued but unused leave - include when there is substantial unused leave
5. Company Property: Requirements for returning company property - include when employee has significant company assets
6. Post-Employment Restrictions: Reminder of any existing post-employment restrictions - include for senior roles or when restrictive covenants exist
1. Schedule 1 - Payment Calculation: Detailed calculation of final payment including salary, prorated benefits, and any adjustments
2. Schedule 2 - Handover Checklist: Detailed list of tasks, documents, and responsibilities to be handed over
3. Schedule 3 - Company Property List: Itemized list of company property to be returned
4. Appendix A - Original Employment Contract Extract: Relevant excerpts from the original employment contract regarding notice period
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