The End of Employment Letter is a crucial document in Malaysian employment practice, required whenever an employment relationship is terminated, whether through resignation, retirement, mutual agreement, or dismissal. It must comply with the Employment Act 1955 and related Malaysian employment legislation, serving as an official record of employment termination. The letter typically includes essential information such as the effective date of termination, final payment details, notice period arrangements, and post-employment obligations. It protects both employer and employee interests by clearly documenting the terms of separation and ensuring all legal requirements are met. This document is particularly important in Malaysia's legal context as it can serve as evidence in any subsequent employment disputes and helps ensure compliance with statutory requirements regarding termination procedures.
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1. Letter Header: Company letterhead, date, reference number, and employee's details
2. Subject Line: Clear indication that this is an End of Employment letter
3. Confirmation of Employment Termination: Statement of employment termination, including effective date and type of termination (resignation, retirement, etc.)
4. Notice Period: Confirmation of notice period served or payment in lieu of notice
5. Final Payment Details: Overview of final salary, pro-rated benefits, and other entitlements
6. Company Property: List of company property to be returned and deadline
7. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
8. Certificate of Service: Confirmation that a service certificate will be provided
9. Contact Information: HR contact details for any queries
10. Signature Block: Space for authorized signatory and employee acknowledgment
1. Garden Leave: Include when employee is required to serve notice period away from office
2. Non-Compete Reminder: Include if employee is bound by post-employment restrictions
3. Retirement Benefits: Include for retirement-based terminations
4. Outstanding Loans: Include if employee has outstanding company loans to be settled
5. Handover Instructions: Include if specific handover process is required
6. Exit Interview: Include if an exit interview is to be scheduled
7. Medical Benefits Extension: Include if medical benefits continue post-employment
8. Reference Policy: Include company's policy on providing references
1. Schedule A - Final Payment Breakdown: Detailed calculation of final payment including salary, leave encashment, and other benefits
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Employee Clearance Form: Departmental clearance checklist to be completed before final settlement
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