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Mutual Release And Non Disparagement Agreement for Malaysia

Mutual Release And Non Disparagement Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes mutual obligations between parties to release claims against each other and refrain from making disparaging statements. The agreement combines elements of dispute resolution and reputational protection, structured in compliance with the Malaysian Contracts Act 1950 and relevant provisions of the Defamation Act 1957. It includes detailed provisions for the scope of releases, specific non-disparagement obligations, enforcement mechanisms, and remedies for breach, while ensuring alignment with Malaysian constitutional protections regarding freedom of expression.

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What is a Mutual Release And Non Disparagement Agreement?

The Mutual Release And Non Disparagement Agreement serves as a crucial legal instrument in Malaysian business and employment contexts where parties seek to formally resolve disputes or end relationships while protecting their respective reputations. This document is particularly valuable in situations involving employment terminations, business partnership dissolutions, or settlement of disputes, where parties wish to prevent future claims and maintain professional dignity. Under Malaysian law, these agreements must carefully balance contractual obligations with constitutional rights and comply with the Contracts Act 1950, Defamation Act 1957, and relevant employment regulations. The agreement typically combines comprehensive releases of claims with specific undertakings regarding future communications, making it essential for risk management and dispute resolution strategies.

What sections should be included in a Mutual Release And Non Disparagement Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Sets out the context and circumstances leading to the agreement, including any existing disputes or relationships between the parties

3. Definitions: Defines key terms used throughout the agreement, including what constitutes 'disparagement' and the scope of 'released claims'

4. Mutual Release: Details the mutual release of claims, including the scope of claims being released and any exceptions

5. Non-Disparagement Obligations: Specifies the mutual obligations not to make disparaging statements, including the scope of prohibited communications

6. Confidentiality: Outlines obligations to keep the terms of the agreement and any related matters confidential

7. Exceptions and Permitted Disclosures: Lists circumstances where disclosure is permitted or where the release/non-disparagement obligations don't apply

8. Remedies: Specifies the consequences of breach and available remedies, including potential liquidated damages

9. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, and severability

What sections are optional to include in a Mutual Release And Non Disparagement Agreement?

1. Return of Property: Used when parties need to return documents, materials, or other property as part of the settlement

2. Social Media Guidelines: Include when parties are active on social media and specific guidelines for online behavior are needed

3. Non-Admission of Liability: Added when parties want to explicitly state that the agreement doesn't constitute admission of wrongdoing

4. References: Include in employment contexts to specify the nature and content of future employment references

5. Cooperation in Transition: Used in business or employment contexts where ongoing cooperation is needed for transition purposes

6. Tax Implications: Include when the agreement involves monetary settlement with potential tax consequences

7. Future Claims: Added when parties want to address the handling of potential future claims that haven't yet arisen

What schedules should be included in a Mutual Release And Non Disparagement Agreement?

1. Schedule of Released Claims: Detailed list of specific claims, disputes, or incidents being released

2. Schedule of Prohibited Statements: Specific examples or categories of statements that would constitute prohibited disparagement

3. Schedule of Existing Public Statements: List of existing public statements that parties agree to maintain or remove

4. Payment Schedule: If there's a settlement payment involved, details the payment terms and schedule

5. Form of Public Statement: Agreed form of any public statements that may be made about the resolution of disputes

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions




















Clauses
























Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Healthcare

Education

Retail

Media and Entertainment

Real Estate

Construction

Telecommunications

Hospitality

Relevant Teams

Legal

Human Resources

Executive Leadership

Corporate Affairs

Risk Management

Compliance

Corporate Communications

Industrial Relations

Business Development

Operations

Relevant Roles

Chief Executive Officer

Human Resources Director

Legal Counsel

Chief Financial Officer

Managing Director

Department Head

Senior Manager

Executive Director

Business Development Manager

Operations Manager

Project Manager

Company Secretary

Risk Manager

Compliance Officer

Partnership Manager

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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