The Employment Termination Agreement is a crucial document used in Malaysian employment law context when an employer and employee mutually agree to end their employment relationship. This document is particularly important in situations where a clean break is desired and both parties wish to document their understanding clearly to prevent future disputes. The agreement must comply with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967, while addressing key aspects such as final payments, benefit treatments, and ongoing obligations. It serves as a comprehensive record of the termination terms, including severance payments, confidentiality requirements, and mutual releases, providing legal protection for both parties involved in the separation.
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1. Parties: Identification of the employer and employee, including full legal names and registration/identification numbers
2. Background: Brief context of the employment relationship, including start date and position, and mutual agreement to terminate
3. Definitions: Key terms used in the agreement including 'Effective Date', 'Final Settlement', 'Company Property'
4. Termination Date: Clear statement of the employment termination date and last working day
5. Final Settlement: Details of final payment including salary, notice period payment, and statutory benefits
6. Company Property: Requirements for return of company property, documents, and data
7. Release and Waiver: Mutual release of claims and obligations between parties
8. Tax Implications: Statement regarding tax treatment of payments and responsibilities
9. Governing Law: Specification of Malaysian law as governing law and jurisdiction
10. Entire Agreement: Standard clause confirming this document represents the complete agreement between parties
1. Non-Disclosure Agreement: Confidentiality obligations post-employment, used when employee had access to sensitive information
2. Non-Compete Clause: Restrictions on future employment, used for senior positions or when required by original employment contract
3. Reference and Announcement: Terms regarding employment references and public/internal announcement of departure
4. Continuing Obligations: Specific obligations that survive termination, used when certain duties need to continue
5. Benefits Continuation: Details of any benefits extending beyond termination date, used when offering extended benefits
6. Assistance in Transition: Requirements for knowledge transfer and handover, used for key positions
7. Housing Benefits: Terms regarding company-provided housing, used when housing was part of employment package
1. Schedule 1 - Payment Calculation: Detailed breakdown of final settlement amount including salary, leave, bonuses, and statutory payments
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Employee Benefits Summary: Summary of benefits and their treatment post-termination
4. Appendix A - Handover Checklist: Detailed list of tasks and documents to be handed over before departure
5. Appendix B - Confidential Information: Definition and scope of confidential information covered under non-disclosure obligations
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Manufacturing
Technology
Healthcare
Education
Retail
Professional Services
Construction
Energy
Telecommunications
Hospitality
Mining
Agriculture
Transportation
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Production
Quality Assurance
Business Development
Administration
Corporate Services
Customer Service
Project Management
Relevant Roles
Chief Executive Officer
Managing Director
Department Head
Senior Manager
Manager
Executive
Senior Engineer
Technical Specialist
Sales Representative
Administrative Officer
Human Resources Manager
Financial Controller
Operations Director
Project Manager
Research Scientist
Marketing Manager
Business Development Manager
Account Manager
Software Developer
Production Supervisor
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