The Pre-Termination Contract Letter is essential in situations where both employer and employee agree to terminate an employment relationship before its intended end date or notice period. Under Malaysian employment law, this document provides a formal framework for managing early contract termination while ensuring compliance with statutory requirements. It includes crucial information such as the agreed last working day, settlement terms, treatment of benefits, company property return procedures, and any post-employment obligations. The document helps prevent future disputes by clearly documenting the terms agreed upon by both parties and ensuring all legal requirements under Malaysian employment legislation are met. It's particularly important in protecting both parties' interests and maintaining professional relationships during the separation process.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a Pre-Termination Contract Letter
3. Opening Statement: Reference to current employment contract and mutual agreement to terminate early
4. Last Working Day: Clear statement of the agreed last day of employment
5. Settlement Terms: Details of final salary, pro-rated benefits, and any additional compensation
6. Company Property: List of company properties to be returned and deadline for return
7. Final Payments Timeline: Specified dates for all final payments and settlements
8. Full and Final Settlement: Statement confirming this agreement constitutes full and final settlement
9. Acknowledgment: Space for both parties to acknowledge and agree to the terms
10. Signature Block: Designated spaces for signatures of both employer and employee
1. Gardening Leave: Include when employee is to be placed on garden leave during notice period
2. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-employment
3. References: Terms regarding the provision of employment references
4. Non-Compete Clause: If applicable, reminder of existing non-compete obligations
5. Outstanding Leave: Treatment of any accumulated but unused leave
6. Benefits Continuation: Details of any benefits that will continue post-termination
7. Legal Rights Waiver: Mutual waiver of legal rights and claims
8. Exit Interview: Details of exit interview arrangements if required
1. Schedule A - Financial Settlement: Detailed breakdown of all financial settlements including salary, benefits, and other entitlements
2. Schedule B - Company Property List: Comprehensive list of company properties to be returned
3. Schedule C - Outstanding Projects Handover: List of ongoing projects and handover requirements
4. Appendix 1 - Calculation of Benefits: Detailed calculations of pro-rated bonuses, leave encashment, and other benefits
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Technology and IT
Manufacturing
Retail and Consumer Goods
Professional Services
Healthcare
Education
Construction
Telecommunications
Oil and Gas
Hospitality and Tourism
Logistics and Transportation
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Corporate Secretarial
Operations
Executive Management
Administrative
Relevant Roles
HR Manager
Legal Counsel
Compliance Officer
HR Director
Employee Relations Manager
HR Business Partner
Legal Manager
Company Secretary
Chief Human Resources Officer
Head of Human Resources
Employment Law Specialist
HR Operations Manager
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