The Letter For Non Renewal Of Work Contract is a crucial document in Malaysian employment practice, used when an employer decides not to extend or renew a fixed-term employment contract. This document must be prepared in compliance with Malaysian employment legislation, particularly the Employment Act 1955 and the Industrial Relations Act 1967. It is typically issued before the contract's expiration date, respecting any notice period requirements specified in the original employment contract or statutory minimums. The letter serves multiple purposes: it provides clear communication of the non-renewal decision, ensures legal compliance, helps prevent potential disputes, and maintains professional relationships. The document should be used when a fixed-term contract is approaching its end date and the organization has decided not to offer renewal, whether due to project completion, organizational changes, performance issues, or other business reasons.
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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 regarding non-renewal of employment contract
3. Contract Reference: Details of the current employment contract including start date, end date, and position
4. Non-Renewal Statement: Clear and unambiguous statement that the contract will not be renewed upon expiry
5. Notice Period Confirmation: Confirmation that this notice meets the required notice period under the contract and Malaysian law
6. Last Working Day: Clear statement of the employee's last working day
7. Return of Company Property: Instructions regarding the return of company property and documents
8. Final Settlement: Information about final salary, benefits, and any outstanding payments
9. Appreciation: Professional acknowledgment of the employee's service
10. Signature Block: Proper closure with authorized signatory details
1. Handover Requirements: Detailed instructions for knowledge transfer and handover of duties, used when position involves critical responsibilities
2. Exit Interview: Information about exit interview arrangements, used when company policy requires it
3. Reference Letter Availability: Information about obtaining reference letters, used when company policy allows it
4. Continuing Obligations: Reminder of post-employment obligations like confidentiality, used when original contract contains such provisions
5. Alternative Position Offers: Information about other available positions within the organization, used when company wishes to retain employee in different role
6. Benefits Continuation: Details about any benefits that extend beyond last working day, used when applicable
7. Competition Restrictions: Reminder of any non-compete clauses, used when original contract contains such provisions
1. Original Employment Contract: Copy of the current employment contract being referenced
2. Company Property Checklist: List of company items to be returned before last working day
3. Final Settlement Calculation: Detailed breakdown of final payment including salary, unused leave, and other entitlements
4. Handover Document Template: Standard template for documenting handover of responsibilities and ongoing projects
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Education
Healthcare
Construction
Financial Services
Retail
Hospitality
Professional Services
Energy
Telecommunications
Transportation and Logistics
Agriculture
Mining and Resources
Media and Entertainment
Relevant Teams
Human Resources
Legal
Operations
Administration
Management
Corporate Secretariat
Industrial Relations
Compliance
Employee Relations
Relevant Roles
Human Resources Manager
HR Director
Department Manager
Project Manager
General Manager
Operations Director
HR Executive
Chief Human Resources Officer
Legal Counsel
Administrative Manager
Company Secretary
Regional Manager
Branch Manager
Country Manager
Managing Director
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