The Mutual Termination Of Employment Letter serves as a crucial document when both employer and employee agree to end their employment relationship amicably in Malaysia. This document is typically used when both parties have reached a mutual understanding to terminate the employment contract outside of standard resignation or termination procedures. It ensures compliance with Malaysian employment laws, including the Employment Act 1955 and Industrial Relations Act 1967, while documenting the voluntary nature of the separation, final settlements, ongoing obligations, and mutual releases. The letter helps prevent future disputes by clearly outlining all termination terms and ensuring both parties' interests are protected.
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1. Letter Header: Company letterhead, date, and formal addressing of the employee
2. Opening Statement: Reference to previous discussions and mutual agreement to terminate
3. Employment Details: Current position, employment duration, and last working day
4. Final Payment Details: Breakdown of final salary, unused leave, and other statutory payments
5. Company Property: List of company property to be returned and deadline
6. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-employment
7. Mutual Release: Statement that both parties release each other from claims
8. Tax Implications: Statement about tax treatment of termination payments
9. Acknowledgment: Space for both parties to sign and date the letter
1. Handover Requirements: Used when there are specific projects or responsibilities that need formal handover
2. Post-Employment Benefits: Include when continuing benefits like medical coverage or insurance are offered
3. Reference Letter: Include when agreed to provide a reference letter
4. Non-Competition Reminder: Include if there was an existing non-compete clause that remains in effect
5. Outstanding Loans: Include if there are any company loans or advances to be settled
6. Share Options/Awards: Include if employee has any share options or awards that need addressing
1. Schedule A - Payment Calculation: Detailed breakdown of final payment including salary, prorated bonus, leave encashment
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Project Status Report: Status of ongoing projects and handover notes if applicable
4. Schedule D - Benefits Summary: Summary of any continuing benefits and their duration
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Financial Services
Retail
Healthcare
Education
Construction
Professional Services
Hospitality
Telecommunications
Energy
Transportation
Agriculture
Mining
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Compensation and Benefits
People Operations
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Employment Lawyer
HR Business Partner
Compensation and Benefits Manager
HR Operations Manager
Legal Manager
Chief Human Resources Officer
HR Administrator
Employee Relations Manager
Talent Management Director
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