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Letter For Not Renewing Contract for Malaysia

Letter For Not Renewing Contract Template for Malaysia

A formal written communication governed by Malaysian employment law, specifically designed to inform an employee, contractor, or service provider about the non-renewal of their existing contract. The document complies with the Employment Act 1955 and Contracts Act 1950 of Malaysia, ensuring proper notice periods and legal requirements are met. It includes essential elements such as contract reference details, clear statement of non-renewal intention, notice period confirmation, and final contract end date, while potentially incorporating optional elements like transition arrangements and final entitlements based on specific circumstances.

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Letter For Not Renewing Contract

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What is a Letter For Not Renewing Contract?

The Letter For Not Renewing Contract is a crucial document used in Malaysian business contexts when an organization decides not to extend or renew a fixed-term employment or service contract. This document must comply with Malaysian employment law, particularly the Employment Act 1955 and the Contracts Act 1950, ensuring proper notice periods are observed. It serves as official documentation of the contract's natural expiration and the organization's intention not to renew, protecting both parties' interests. The letter should be issued within the notice period specified in the original contract or as required by law, typically including details about the current contract, clear statement of non-renewal, end date, and any relevant transition arrangements. This document is particularly important in Malaysia's business environment where fixed-term contracts are common across various sectors and industries.

What sections should be included in a Letter For Not Renewing Contract?

1. Letter Header: Company letterhead, date, reference number, and recipient's contact details

2. Subject Line: Clear indication that this is regarding non-renewal of contract

3. Contract Reference: Details of the existing contract including start date and current end date

4. Non-Renewal Statement: Clear and unambiguous statement of intention not to renew the contract

5. Notice Period Confirmation: Confirmation that this letter serves as the required notice as per the contract terms

6. End Date: Specific mention of the final day of the contract

7. Signature Block: Authorized signatory details and signature

What sections are optional to include in a Letter For Not Renewing Contract?

1. Reason for Non-Renewal: Include when it's appropriate or required to provide explanation for the non-renewal decision

2. Appreciation Statement: Include when wanting to maintain good relations by expressing gratitude for services rendered

3. Transition Arrangements: Include when specific handover or transition processes need to be documented

4. Final Entitlements: Include when needing to specify details about final payment, benefits, or other entitlements

5. Return of Company Property: Include when there are specific company assets or documents that need to be returned

6. Non-Compete Reminder: Include when the existing contract contains post-employment restrictions that need to be emphasized

What schedules should be included in a Letter For Not Renewing Contract?

1. Handover Checklist: Optional attachment listing items, tasks, or responsibilities that need to be transferred

2. Final Settlement Statement: Optional attachment detailing any final payments, benefits, or deductions

3. Company Property List: Optional attachment itemizing company assets to be returned

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Cost

Free to use
Relevant legal definitions















Clauses















Relevant Industries

Information Technology

Manufacturing

Education

Healthcare

Construction

Professional Services

Financial Services

Retail

Telecommunications

Real Estate

Energy

Hospitality

Transportation

Agriculture

Relevant Teams

Human Resources

Legal

Operations

Administration

Compliance

Senior Management

Procurement

Contract Management

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Hiring Manager

Department Head

Operations Manager

Project Manager

Contract Administrator

Recruitment Manager

HR Business Partner

Chief Human Resources Officer

Legal Manager

Business Unit Director

Managing Director

Chief Executive Officer

Industries




Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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