The Termination of Services Letter is a crucial document in Malaysian employment practice, used when an employer needs to formally end an employment relationship. This document must be carefully drafted to ensure compliance with Malaysian employment legislation, including the Employment Act 1955 and related regulations. The letter serves multiple purposes: it provides formal notification of termination, documents the terms of separation, outlines final payments and benefits, and establishes post-employment obligations. When issuing a Termination of Services Letter, employers must consider statutory notice periods, mandatory benefits, and proper procedures to minimize legal risks. The document is essential for both documentation purposes and ensuring a clear understanding between all parties regarding the termination arrangements.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a termination of services letter
3. Opening Statement: Formal notification of termination decision with reference to employment contract or relevant circumstances
4. Termination Details: Specific date of termination, notice period details, and whether notice will be served or paid in lieu
5. Final Payments: Overview of final salary, unused leave, and other statutory entitlements
6. Company Property: Requirements for returning company property and documentation
7. Handover Requirements: Instructions regarding the handover of work responsibilities
8. Acknowledgment: Space for employee signature acknowledging receipt of the letter
1. Garden Leave: Include when the employee is required to serve notice period away from work premises
2. Post-Employment Restrictions: Reference to existing non-compete or confidentiality obligations, if applicable
3. Severance Package: Include when offering additional compensation beyond statutory requirements
4. Reference Provision: Details about providing employment references if agreed
5. Outplacement Support: Include when company offers career transition assistance
6. Legal Rights Reservation: Include when necessary to explicitly reserve company's legal rights
7. Settlement Agreement Reference: Include when termination is part of a broader settlement agreement
1. Schedule A: Payment Calculation: Detailed breakdown of final payment including salary, benefits, and statutory payments
2. Schedule B: Company Property List: Itemized list of company property to be returned
3. Schedule C: Handover Checklist: Detailed list of tasks, projects, and responsibilities to be handed over
4. Schedule D: Employee Benefits Summary: Summary of benefit termination dates and conversion options if applicable
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Manufacturing
Technology
Retail
Healthcare
Education
Professional Services
Construction
Hospitality
Telecommunications
Energy
Transportation
Real Estate
Media and Entertainment
Agriculture
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
People Operations
Administration
Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
HR Business Partner
Employee Relations Manager
Compensation and Benefits Manager
HR Administrator
Legal Manager
Compliance Officer
Department Manager
Line Manager
Operations Manager
Director of People Operations
Chief Human Resources Officer
HR Operations Manager
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