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Termination Letter Without Cause for Malaysia

Termination Letter Without Cause Template for Malaysia

A termination letter without cause is a formal document used in Malaysia to end an employment relationship where the termination is not due to employee misconduct or performance issues. This document must comply with Malaysian employment law, particularly the Employment Act 1955 and related regulations. It includes essential information such as the termination date, notice period, final payment details, and post-employment obligations. The letter must be drafted carefully to ensure compliance with statutory requirements regarding notice periods, termination benefits, and procedural fairness under Malaysian law.

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Termination Letter Without Cause

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What is a Termination Letter Without Cause?

A Termination Letter Without Cause is an essential document used in Malaysian employment contexts when an employer needs to end an employment relationship for reasons not related to employee performance or misconduct. This document must strictly comply with Malaysian employment legislation, including the Employment Act 1955 and the Industrial Relations Act 1967. It serves as official documentation of the termination decision and outlines key information such as the effective date, notice period, final payments, and post-employment obligations. The letter should be drafted with careful consideration of statutory notice periods, termination benefits, and procedural requirements to minimize legal risks and ensure fair treatment of the employee. This type of termination letter is commonly used during organizational restructuring, downsizing, or other business-related changes that necessitate workforce reduction.

What sections should be included in a Termination Letter Without Cause?

1. Letter Header: Company letterhead, date, and reference number

2. Recipient Details: Employee's name, position, and address

3. Subject Line: Clear indication that this is a notice of termination

4. Notice of Termination: Clear statement of termination without cause and the notice period being given

5. Effective Date: Specific date when the employment will terminate

6. Final Payments: Information about salary, unused leave, and other statutory entitlements

7. Company Property: Instructions regarding return of company property

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Contact Information: Details of who to contact for queries or handover

10. Signature Block: Authorized signatory details and signature

What sections are optional to include in a Termination Letter Without Cause?

1. Garden Leave: Include if employee is not required to work during notice period

2. Reference Offer: Include if company is willing to provide employment references

3. Non-Compete Reminder: Include if employee is bound by post-employment restrictions

4. Handover Instructions: Include if specific handover procedures are required

5. Benefits Continuation: Include if certain benefits continue post-termination

6. Settlement Agreement Option: Include if offering additional benefits in exchange for signing a settlement agreement

What schedules should be included in a Termination Letter Without Cause?

1. Final Payment Calculation: Detailed breakdown of final payment including salary, notice pay, and statutory benefits

2. Company Property Checklist: List of company items to be returned

3. Handover Document: Template for documenting ongoing projects and responsibilities

4. Benefits Summary: Summary of benefits status and post-termination arrangements

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

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions















Clauses















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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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