The Legal Termination Letter is a crucial document used in Malaysian employment contexts when an employer needs to formally end an employment relationship. It must strictly adhere to Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967. This document is essential for protecting both employer and employee interests by clearly documenting the termination decision, reasons (if applicable), notice period, final payments, and post-employment obligations. The letter serves as official documentation of the termination process and can be critical in preventing future disputes or legal challenges. It should be drafted with careful attention to legal requirements, including minimum notice periods, statutory entitlements, and any specific terms in the original employment contract.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Subject Line: Clear indication that this is a termination notice
3. Opening Statement: Reference to employment contract and formal notice of termination
4. Termination Details: Effective date of termination and notice period details
5. Reason for Termination: Clear and legally compliant explanation for the termination decision
6. Final Payment Details: Information about salary, unused leave, and other entitlements
7. Company Property: Instructions regarding return of company property and documents
8. Acknowledgment: Space for employee signature to acknowledge receipt of the letter
1. Garden Leave Provisions: Include when employee is required to serve notice period away from workplace
2. Non-Compete Reminder: Include when employment contract contains post-employment restrictions
3. Handover Instructions: Include when specific handover of duties/projects is required
4. Benefits Continuation: Include when there are specific arrangements for benefits post-termination
5. Reference Provision: Include when company agrees to provide employment references
6. Settlement Agreement Reference: Include when termination is part of a mutual separation agreement
1. Final Payment Calculation: Detailed breakdown of final payment including salary, benefits, and deductions
2. Handover Checklist: List of items, documents, and responsibilities to be handed over
3. Company Property List: Itemized list of company property to be returned
4. Employee Benefits Statement: Summary of benefits status and post-termination arrangements
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