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The Employee Clearance Letter is a crucial document in Malaysian employment practice, issued when an employee is leaving an organization either through resignation, retirement, or termination. This document, governed by Malaysian employment law including the Employment Act 1955, serves multiple purposes: it protects both employer and employee interests, provides clear documentation of completed exit procedures, and serves as evidence that all company properties have been returned and obligations fulfilled. The clearance letter typically requires sign-offs from various departments and includes details about final settlements, continuing obligations, and confirmation that all company assets have been returned. It forms an important part of employee records and may be required for future reference or employment verification.

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

2. Subject Line: Clear indication that this is an Employee Clearance Letter

3. Employee Information: Employee name, ID, position, department, and last working day

4. Clearance Confirmation: Statement confirming all company properties have been returned and obligations fulfilled

5. Department Clearances: List of departments that have provided clearance (IT, Finance, HR, etc.)

6. Financial Settlement: Confirmation of final salary, benefits, and any other financial settlements

7. Company Property: Confirmation of return of all company property including ID cards, equipment, etc.

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Closing Statement: Best wishes and future contact information if needed

10. Authorized Signatory: Signature block for HR manager or authorized person