The Job Cancellation Letter is a crucial document in Malaysian employment practice, used to formally communicate the termination of employment. It must comply with the Employment Act 1955, Industrial Relations Act 1967, and other relevant Malaysian employment regulations. This document is typically used when an employer needs to terminate employment due to various reasons such as poor performance, restructuring, or economic conditions. The letter should include essential information such as termination date, notice period, final settlement details, and company property return requirements. In Malaysia, proper documentation of employment termination is particularly important to avoid potential disputes and ensure compliance with statutory requirements regarding termination procedures and benefits.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee
2. Employee Details: Full name, employee ID, position, and department of the employee
3. Statement of Termination: Clear and unambiguous statement declaring the termination of employment
4. Effective Date: Specific date when the employment will be terminated
5. Notice Period: Details of the notice period as per employment contract or Employment Act 1955
6. Final Payment Details: Information about final salary, pro-rated benefits, and payment timing
7. Company Property: List of company properties to be returned and deadline for return
8. Closing Statement: Professional closing with contact information for further queries
9. Signature Block: Space for authorized signatory details and signature
1. Reason for Termination: Include when termination is due to specific cause, poor performance, or restructuring
2. Severance Package: Details of any severance pay or additional benefits offered beyond statutory requirements
3. Non-Compete Reminder: Include if employee is bound by existing non-compete or confidentiality agreements
4. Handover Instructions: Include when employee needs to transfer responsibilities or ongoing projects
5. Release Agreement: Include when seeking mutual release of claims
6. Benefits Continuation: Include details about post-employment benefits if applicable
7. Reference Letter Offer: Include if company is willing to provide future employment references
1. Final Payment Calculation: Detailed breakdown of final payment including salary, leave encashment, and other benefits
2. Company Property Checklist: Itemized list of company assets to be returned
3. Outstanding Obligations: List of any pending tasks, reports, or documentation to be completed
4. Benefit Entitlements Summary: Summary of benefits and their status post-termination
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