The document "Ending An Employment Contract Early" is essential in situations where either the employer or employee needs to terminate an employment relationship before its intended end date in Malaysia. It is designed to comply with Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967. This document should be used when parties agree to end employment early or when unilateral termination is necessary, ensuring proper documentation of notice periods, final payments, and statutory benefits. It includes crucial elements such as termination date, payment calculations, benefit arrangements, and post-employment obligations. The document is particularly important in Malaysia's employment context, where specific statutory requirements must be met to ensure a legally compliant termination process.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship, including original contract date and reason for early termination
3. Definitions: Key terms used throughout the document
4. Effective Date of Termination: Clear statement of when the employment relationship will end
5. Notice Period: Details of notice period being served or payment in lieu of notice
6. Final Payment Calculations: Breakdown of final salary, pro-rated bonuses, and other entitled payments
7. Statutory Benefits: Overview of statutory benefits and entitlements upon termination
8. Company Property: Requirements for return of company property and documentation
9. Employee Claims Release: Mutual release of claims between parties
10. Governing Law: Confirmation that the termination is governed by Malaysian law
1. Non-Compete Obligations: Included when there are post-employment restrictions on competition
2. Confidentiality Obligations: Used when emphasizing ongoing confidentiality requirements post-employment
3. Reference Provision: Include when parties agree on the nature of employment references
4. Outstanding Leave Arrangement: Required when addressing unused annual leave or other leave entitlements
5. Handover Requirements: Include when specific handover of duties or projects is necessary
6. Medical Benefits Extension: Used when providing continued medical coverage post-termination
7. Share Options/Awards: Include when addressing outstanding share options or equity arrangements
1. Schedule 1 - Payment Calculation: Detailed breakdown of all final payments including salary, benefits, and statutory payments
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Outstanding Projects: List of projects requiring handover and their current status
4. Appendix A - Original Employment Contract: Copy of the original employment contract being terminated
5. Appendix B - Statutory Declaration: Required declarations under Malaysian employment law
6. Appendix C - Benefits Statement: Statement of all benefits and their treatment post-termination
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