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Clearance Certificate For Employee for Malaysia

Clearance Certificate For Employee Template for Malaysia

A Malaysian Clearance Certificate For Employee is a formal document issued by an employer confirming that an employee has fulfilled all obligations and settled all matters related to their employment upon separation. This document, governed by Malaysian employment law including the Employment Act 1955, certifies that all financial settlements, statutory contributions (EPF and SOCSO), and company property returns have been properly completed. It serves as official documentation of the employee's clean separation from the organization and can be crucial for future employment opportunities.

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What is a Clearance Certificate For Employee?

The Clearance Certificate For Employee is a crucial document in Malaysian employment practice that formally concludes the employer-employee relationship. It is typically issued when an employee leaves an organization, whether through resignation, retirement, or termination, and after all exit formalities have been completed. The certificate confirms that the employee has settled all financial obligations, returned company property, and complied with statutory requirements under Malaysian law, including EPF and SOCSO regulations. This document protects both parties by preventing future disputes and serves as evidence of proper employment closure. It is particularly important in the Malaysian context where formal documentation of employment matters is highly valued and often required for future employment prospects.

What sections should be included in a Clearance Certificate For Employee?

1. Employee and Company Details: Full identification details of the employee and the company, including employee ID, position, and department

2. Period of Employment: Confirmation of employment duration from start date to last working day

3. Financial Clearance: Confirmation that all salary, benefits, and other financial dues have been settled

4. Company Property Return: Confirmation of return of all company assets, equipment, and documents

5. Statutory Compliance: Confirmation of compliance with EPF, SOCSO, and tax requirements

6. Authentication: Date of issuance, authorized signatory details, and company stamp

What sections are optional to include in a Clearance Certificate For Employee?

1. Pending Matters: Used when there are specific ongoing matters that need to be noted or addressed

2. Performance Summary: Optional section if the certificate is to include a brief statement about the employee's conduct and performance

3. Non-Compete Reminder: Include if the employee was subject to non-compete or non-solicitation agreements

4. Project Handover Status: Used for employees who were handling critical projects requiring formal handover confirmation

What schedules should be included in a Clearance Certificate For Employee?

1. Schedule A - Financial Settlement Details: Detailed breakdown of final settlements, if applicable

2. Schedule B - Company Property Checklist: Itemized list of company property returned

3. Schedule C - Departmental Clearance Checklist: Signatures from various department heads confirming clearance

4. Appendix 1 - Exit Interview Summary: Summary of exit interview findings, if conducted

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions



















Clauses


















Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Hospitality

Energy

Transportation

Agriculture

Mining

Public Sector

Relevant Teams

Human Resources

Finance

Legal

Administration

Compliance

Payroll

Employee Relations

Corporate Secretariat

Operations

Relevant Roles

HR Manager

HR Director

Finance Manager

Company Secretary

Legal Counsel

HR Executive

Payroll Manager

Compliance Officer

Administrative Manager

Department Head

Operations Manager

HR Business Partner

Chief Human Resources Officer

Employee Relations Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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