The Termination of Services Letter to Employee is a crucial document in Malaysian employment relations, used when an employer needs to formally end an employment relationship. It must comply with Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967, ensuring proper notice periods and termination benefits are addressed. The document serves multiple purposes: it officially communicates the termination decision, outlines the terms of separation, specifies final payments and benefits, and provides instructions for the transition period. This letter becomes a vital record for both parties and may be required in future legal proceedings or employment verification.
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1. Letter Date and Reference Number: Current date and company's reference number for the termination letter
2. Employee Details: Full name, employee ID, position, and department of the employee
3. Subject Line: Clear indication that this is a termination of employment notice
4. Termination Statement: Clear statement of employment termination with the effective date
5. Notice Period: Details of the notice period or payment in lieu of notice
6. Reason for Termination: Brief, professional explanation of termination reason (if applicable)
7. Final Payment Details: Overview of final salary, benefits, and other entitlements
8. Company Property: Instructions regarding return of company property
9. Acknowledgment: Space for both parties to sign and date the letter
1. Garden Leave: Include when employee is required to serve notice period away from office
2. Confidentiality Reminder: Include when employee had access to sensitive information
3. Non-Compete Clause Reference: Include when referencing existing non-compete agreements
4. Handover Instructions: Include when specific handover procedures are required
5. Reference Letter Offer: Include when company is willing to provide future references
6. Outstanding Loans/Advances: Include when there are outstanding financial matters to be settled
7. Medical Benefits Extension: Include when providing extended medical coverage
8. Exit Interview: Include when an exit interview is required
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, notice period, and statutory benefits
2. Schedule B - Outstanding Leave Balance: Calculation of remaining annual leave, medical leave, and other leave entitlements
3. Schedule C - Company Property Checklist: List of company property to be returned with acknowledgment form
4. Schedule D - Employment Benefits Summary: Summary of benefits that will cease or continue post-termination
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Manufacturing
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Healthcare
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Energy
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Agriculture
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Relevant Teams
Human Resources
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Compliance
Employee Relations
Personnel Administration
Corporate Services
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