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Notice Of Redundancy Template for Malaysia

A formal document used in Malaysian employment law to notify an employee of their termination due to redundancy. This document must comply with the Employment Act 1955 and related Malaysian labor laws, including proper notice periods and severance calculations. The notice includes essential information about the termination date, severance package, final payment details, and employee rights under Malaysian law. It serves as a legal record of the redundancy process and outlines both employer obligations and employee entitlements in accordance with Malaysian employment regulations.

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What is a Notice Of Redundancy?

The Notice of Redundancy is a crucial document in Malaysian employment practice, used when an organization needs to terminate employment due to business restructuring, economic conditions, or organizational changes. This document must be prepared in accordance with Malaysian employment law, particularly the Employment Act 1955 and the Industrial Relations Act 1967. It serves as both a legal requirement and a formal communication tool, detailing the redundancy decision, notice period, severance package, and other relevant terms. The notice should be issued after proper consultation processes and must include specific information about termination benefits, final payments, and the employee's rights. Companies must ensure the Notice of Redundancy complies with the 'last-in-first-out' principle unless there are justified exceptions, and proper notification to relevant authorities may be required depending on the scale of redundancy.

What sections should be included in a Notice Of Redundancy?

1. Letter Header: Company letterhead, date, reference number, and employee's details

2. Subject Line: Clear indication that this is a Notice of Redundancy

3. Opening Statement: Formal notification of the redundancy decision with reference to prior consultation if applicable

4. Reason for Redundancy: Clear explanation of the business circumstances leading to the redundancy

5. Effective Date: Specific date when the employment will terminate

6. Notice Period: Details of the notice period as per Employment Act requirements

7. Severance Package: Breakdown of termination benefits and compensation

8. Final Payment Details: Information about final salary, unused leave, and other entitlements

9. Return of Company Property: List of company assets to be returned and process for return

10. Closing Statement: Expression of gratitude for service and support offered during transition

What sections are optional to include in a Notice Of Redundancy?

1. Outplacement Support: Details of career transition services if provided by the company

2. Garden Leave: Include if employee is not required to work during notice period

3. Non-Compete and Confidentiality: Reminder of ongoing obligations, if applicable to employee's position

4. Reference Letter Offer: Include if company policy allows providing references

5. Company Housing: Include if employee is provided with company accommodation, detailing vacation timeline

What schedules should be included in a Notice Of Redundancy?

1. Schedule A - Severance Calculation: Detailed breakdown of termination benefits calculation

2. Schedule B - Outstanding Benefits: List of accrued benefits, leave, and other entitlements

3. Schedule C - Company Property Checklist: Itemized list of company assets to be returned

4. Appendix 1 - Employment Insurance System Information: Information about EIS benefits and application process

5. Appendix 2 - Exit Procedures: Detailed checklist of exit procedures and timeline

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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