Document background
The Independent Contractor Severance Agreement is essential for businesses operating in Malaysia that need to formally conclude their relationship with independent contractors. This document becomes necessary when a contractor engagement needs to be terminated, whether due to project completion, business changes, or mutual agreement. It provides a structured framework under Malaysian law for handling the separation process, including crucial elements such as final payments, confidentiality provisions, and release of claims. The agreement helps prevent future disputes by clearly documenting the terms of separation and ensuring both parties understand their rights and obligations post-termination. This document is particularly important in the Malaysian business context, where clear documentation of independent contractor relationships helps avoid potential misclassification issues and ensures compliance with local contract and tax laws.
