The Friendly Termination Letter is used when both employer and employee in Malaysia agree to end their employment relationship on mutually acceptable terms. This document is particularly relevant when parties wish to document their agreement to terminate employment while maintaining positive professional relationships. It must comply with Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967. The letter typically includes termination date, final settlement terms, confidentiality provisions, and mutual releases. It serves as legal evidence of the consensual nature of the separation and helps prevent future disputes by clearly documenting agreed terms.
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1. Letter Header: Company letterhead, date, and formal addressing of the employee
2. Opening Statement: Reference to previous discussions and confirmation of mutual agreement to terminate
3. Effective Date: Clear statement of the agreed termination date
4. Confirmation of Terms: Brief summary of key agreed terms including final payments, benefits, and mutual release
5. Acknowledgment: Statement confirming mutual understanding and amicable nature of separation
6. Closing: Professional closing with signature blocks for both parties
1. Handover Process: Details of knowledge transfer and handover of responsibilities, used when employee holds key role or information
2. Company Property: List of company items to be returned, used when employee has significant company property
3. Reference Provision: Terms regarding future employment references, included when specifically agreed
4. Confidentiality Reminder: Restatement of ongoing confidentiality obligations, used for sensitive positions
5. Post-termination Benefits: Details of any continued benefits or perks, included when applicable
6. Outstanding Projects: Status of ongoing work and transition plan, used for project-based roles
1. Schedule A - Final Payment Details: Breakdown of final salary, benefits, and any additional payments
2. Schedule B - Company Property Checklist: Itemized list of company assets to be returned
3. Schedule C - Handover Checklist: Detailed list of tasks, documents, and responsibilities to be transferred
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