The Employee Release Agreement is a crucial legal document used in Malaysia when formally ending an employment relationship. It serves multiple purposes: documenting the terms of separation, protecting both parties from future claims, and ensuring compliance with Malaysian employment laws. This document is typically used during voluntary resignations, mutual separations, redundancies, or retirement situations. It must align with the Employment Act 1955, Industrial Relations Act 1967, and other relevant Malaysian legislation. The agreement includes essential elements such as separation terms, settlement payments, confidentiality provisions, and release of claims. It's particularly important for positions involving access to sensitive information, senior management roles, or situations where significant settlement payments are involved.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of employment relationship, including start date, position, and reason for separation
3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Claims', 'Confidential Information'
4. Separation Terms: Details of employment termination including last working day and final pay arrangements
5. Settlement Payment: Specific details of any settlement or separation payment, including amount and payment terms
6. Release of Claims: Mutual release of claims between parties, specifying scope of claims being released
7. Continuing Obligations: Ongoing obligations including confidentiality, non-disparagement, and return of company property
8. Tax Implications: Statement on tax treatment of payments and each party's tax responsibilities
9. Governing Law: Specification that Malaysian law governs the agreement
10. Entire Agreement: Confirmation that this document represents the complete agreement between parties
1. Non-Competition: Restrictions on future employment with competitors, used when protecting business interests is crucial
2. Reference and Announcement: Terms regarding employment references and how departure will be communicated, used when public relations are important
3. Retirement Benefits: Special provisions for retirement cases, including pension arrangements
4. Outplacement Support: Details of any career transition support offered, used in redundancy or restructuring situations
5. Share Options/Awards: Treatment of outstanding share options or awards, used when employee has equity-based compensation
6. Medical Benefits Extension: Details of any post-employment medical coverage, used for senior employees or special cases
7. Legal Fees: Provisions regarding payment of legal fees for agreement review, used in senior executive agreements
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, notice pay, statutory benefits, and ex-gratia payments
2. Schedule 2 - Company Property: List of all company property to be returned by the employee
3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-termination
4. Appendix A - Statutory Rights: Statement of employee's statutory rights under Malaysian law
5. Appendix B - Claims Released: Comprehensive list of types of claims being released
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology and Software
Manufacturing
Professional Services
Healthcare
Education
Retail and Consumer Goods
Energy and Utilities
Telecommunications
Construction and Real Estate
Hospitality and Tourism
Mining and Natural Resources
Relevant Teams
Human Resources
Legal
Finance
Executive Leadership
Operations
Information Technology
Sales
Marketing
Research and Development
Administration
Corporate Affairs
Risk and Compliance
Relevant Roles
Chief Executive Officer
Managing Director
Senior Manager
Department Head
Regional Manager
Project Manager
Software Engineer
Financial Controller
Sales Director
Operations Manager
Human Resources Manager
Legal Counsel
Marketing Manager
Account Manager
Technical Lead
Research Scientist
Executive Assistant
Administrative Officer
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