The Notice of Termination Letter is a crucial document in Malaysian employment practice that formally communicates the end of an employment relationship. It must be drafted in accordance with Malaysian employment legislation, particularly the Employment Act 1955 and related regulations. This document is used when an employer needs to terminate an employee's service with proper notice, or in cases of immediate termination with justified cause. The letter should contain specific elements required by Malaysian law, including clear termination date, notice period details, and final payment arrangements. It serves as a legal record and protection for both parties, ensuring the termination process is handled professionally and in compliance with local employment regulations. The Notice of Termination Letter may be issued for various reasons, including but not limited to restructuring, performance issues, or completion of contract terms.
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1. Letter Header and Date: Company letterhead, current date, and reference number if applicable
2. Recipient Details: Employee's full name, position, and address
3. Subject Line: Clear indication that this is a notice of termination
4. Formal Termination Statement: Clear statement of employment termination and the effective date
5. Notice Period Details: Specification of notice period as per employment contract and Malaysian law
6. Final Payments: Information about final salary, unused leave, and other statutory payments
7. Company Property: Instructions regarding return of company property
8. Signature Block: Authorized signatory details and company stamp
1. Reason for Termination: Include only if legally required or if termination is performance/conduct-based and properly documented
2. Garden Leave Provisions: Include if employee is to be placed on garden leave during notice period
3. Non-Compete Reminder: Include if employment contract contained non-compete or non-solicitation clauses
4. Handover Instructions: Include if specific handover of duties/projects is required
5. Benefits Continuation: Include if there are any post-employment benefits or insurance continuations
6. Exit Interview: Include if company policy requires an exit interview
7. Reference Provision: Include if company will provide employment references
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, benefits, and statutory payments
2. Company Property Checklist: List of company assets to be returned
3. Employee Benefits Statement: Summary of benefits status and post-employment continuation if applicable
4. Confidentiality Agreement Reminder: Copy of relevant confidentiality clauses from employment contract
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