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Notice Of Non Renewal Of Employment Contract Template for Malaysia

A formal notification document used in Malaysia to inform an employee that their fixed-term employment contract will not be renewed upon its expiration. This document must comply with Malaysian employment law, particularly the Employment Act 1955 and related regulations. It serves as an official communication of the employer's intention to end the employment relationship at the contract's natural conclusion, providing essential details such as the final working day, arrangements for final settlements, and procedures for company property return. The document ensures legal compliance while maintaining professional standards in employment termination processes.

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What is a Notice Of Non Renewal Of Employment Contract?

The Notice of Non-Renewal of Employment Contract is a crucial document used in Malaysian employment contexts when an employer decides not to extend or renew a fixed-term employment contract. This document is essential for maintaining clear communication and legal compliance in employment relationships governed by Malaysian law, particularly the Employment Act 1955 and the Industrial Relations Act 1967. It should be issued with appropriate notice before the contract's expiration date, typically matching the notice period specified in the original employment contract. The notice serves multiple purposes: it provides clear documentation of the employment relationship's planned conclusion, helps prevent misunderstandings about contract continuation, and outlines important transition details such as final settlements and company property return procedures. This document is particularly important in protecting both employer and employee interests by ensuring a clear, professional, and legally compliant conclusion to the employment relationship.

What sections should be included in a Notice Of Non Renewal Of Employment Contract?

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

2. Subject Line: Clear indication that this is a Notice of Non-Renewal of Employment Contract

3. Employee Information: Employee name, position, department, and employee ID

4. Contract Reference: Reference to the original employment contract, including its date and duration

5. Notice of Non-Renewal: Clear statement of intention not to renew the contract upon expiry

6. Contract End Date: Specific mention of the last day of employment under the current contract

7. Return of Company Property: Instructions regarding the return of company assets and documents

8. Final Settlement: Information about final salary, benefits, and any outstanding payments

9. Signature Block: Space for authorized signatory details and signature

What sections are optional to include in a Notice Of Non Renewal Of Employment Contract?

1. Reason for Non-Renewal: Optional explanation of the reasons for non-renewal, if company policy or circumstances warrant disclosure

2. Handover Instructions: Specific instructions about knowledge transfer and handover procedures, if applicable

3. Reference Offer: Statement about providing employment references, if company policy allows

4. Non-Competition Reminder: Reminder of any existing non-compete or confidentiality obligations, if present in original contract

5. Exit Interview: Information about exit interview arrangements, if company policy requires

6. Acknowledgment Section: Space for employee to acknowledge receipt and understanding of the notice, if required

What schedules should be included in a Notice Of Non Renewal Of Employment Contract?

1. Final Clearance Checklist: List of items to be cleared/returned before the last day

2. Benefits Statement: Detailed breakdown of final payment including salary, unused leave, and other benefits

3. Handover Document Template: Template for documenting ongoing projects and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Termination Notice

Cost

Free to use

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