A Job Termination Letter is an essential document used when formally ending an employment relationship in Malaysia. It must be drafted in compliance with Malaysian employment legislation, particularly the Employment Act 1955 and Industrial Relations Act 1967. The document is used in various scenarios including resignation acceptance, termination for cause, redundancy, or mutual separation. The letter should clearly state the termination effective date, notice period details, final payment calculations, and post-employment obligations. It serves as a crucial legal record and should be carefully drafted to protect both parties' interests while ensuring compliance with Malaysian employment laws. Proper documentation through a Job Termination Letter can help prevent future disputes and ensure a clear understanding of the termination terms.
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1. Letter Header: Company letterhead, date, and reference number
2. Recipient Details: Employee's full name, position, and address
3. Subject Line: Clear indication that this is a termination notice
4. Termination Statement: Clear statement of employment termination and the effective date
5. Notice Period: Details of notice period or payment in lieu of notice
6. Final Payment Details: Information about salary, unused leave, and other entitled benefits
7. Company Property: List of company properties to be returned and process for return
8. Certificate of Service: Confirmation that a service certificate will be provided
9. Closing: Professional closing with signature block for authorized signatory
1. Reason for Termination: Include only if termination is for cause or if specifically required by policy
2. Garden Leave: Include if employee is placed on garden leave during notice period
3. Non-Compete Reminder: Include if employee is bound by existing non-compete agreements
4. Continuation of Benefits: Include if certain benefits continue post-termination
5. Confidentiality Obligations: Include reminder of ongoing confidentiality obligations if applicable
6. Outplacement Support: Include if company is providing career transition assistance
7. Claims Release: Include if termination is part of a mutual separation agreement
1. Final Payment Calculation: Detailed breakdown of final payment including salary, pro-rated bonus, leave encashment
2. Company Property Checklist: Itemized list of company assets to be returned
3. Employee Benefits Summary: Summary of benefits status and post-termination arrangements
4. Exit Process Checklist: Checklist of actions to be completed before last day
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