The Termination Letter Due To Downsizing is a crucial document used when organizations in Malaysia need to reduce their workforce due to economic conditions, restructuring, or other business necessities. This document must comply with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967. It serves as official communication of employment termination while ensuring all legal requirements are met regarding notice periods, termination benefits, and proper procedure. The letter should be used when an organization has determined that workforce reduction is necessary and has followed proper selection criteria for affected employees. It includes essential information about termination terms, final payments, benefit calculations, and available support services, while maintaining professionalism and showing consideration for the affected employee.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a notice of termination due to downsizing/retrenchment
3. Opening Statement: Brief introduction and clear statement of the purpose of the letter
4. Business Context: Explanation of the business circumstances necessitating the downsizing
5. Termination Notice: Formal notice of termination including the effective date and notice period details
6. Statutory Entitlements: Information about mandatory termination benefits and payments
7. Return of Company Property: Instructions regarding the return of company assets and documents
8. Final Payment Details: Breakdown of final salary, unused leave, and termination benefits
9. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
10. Closing and Contact Information: Support contact details and signature block
1. Outplacement Support: Details of career transition assistance if provided by the company
2. Extended Benefits: Information about any continuation of medical benefits or insurance coverage
3. Reference Letter Offer: Offer to provide employment references if applicable
4. Re-employment Possibility: Information about potential future re-employment if business conditions improve
5. Exit Interview: Details about exit interview arrangements if required
6. Transition Period Arrangements: Specific instructions about knowledge transfer or handover if applicable
1. Schedule A - Termination Benefits Calculation: Detailed breakdown of termination benefits and calculations
2. Schedule B - Final Payment Summary: Comprehensive list of all final payments including salary, benefits, and deductions
3. Schedule C - Company Property Checklist: List of company property to be returned
4. Schedule D - Available Support Services: Details of outplacement services and government assistance programs
5. Schedule E - Important Contact Information: List of relevant HR contacts and support resources
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Human Resources
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Employee Relations
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Finance
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HR Business Partner
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HR Operations Manager
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Department Manager
Chief Executive Officer
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