The Termination Of Employment Contract is a crucial document used in Malaysia when ending an employment relationship, whether through mutual agreement, resignation, or employer-initiated termination. It must comply with the Employment Act 1955, Industrial Relations Act 1967, and other relevant Malaysian employment legislation. This document is essential for properly documenting the termination process, protecting both employer and employee interests, and ensuring all statutory requirements are met. It typically includes details about notice periods, final payments, benefit calculations, company property return, and ongoing obligations such as confidentiality. The document helps prevent future disputes by clearly documenting all termination terms and conditions while ensuring compliance with Malaysian employment law requirements.
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1. Parties: Details of the employer and employee, including full legal names, identification numbers, and addresses
2. Background: Brief context of the employment relationship, including original employment date and position
3. Definitions: Key terms used throughout the agreement
4. Termination Date: Clear specification of the last day of employment
5. Notice Period: Details of the notice period being given or payment in lieu of notice
6. Final Payment Details: Breakdown of final salary, pro-rated benefits, and statutory payments
7. Company Property: Requirements for return of company property and documents
8. Confidentiality Obligations: Ongoing obligations regarding confidential information
9. Full and Final Settlement: Confirmation that the agreement represents full and final settlement of all claims
10. Governing Law: Confirmation that the agreement is governed by Malaysian law
1. Garden Leave: Used when the employee is required to serve their notice period away from the workplace
2. Post-termination Restrictions: Include when there are non-compete or non-solicitation clauses to be enforced
3. Handover Requirements: Detailed handover procedures for senior positions or critical roles
4. Reference Provision: Terms regarding the provision of employment references
5. Outplacement Support: Details of any career transition support being offered
6. Special Severance Package: Used when offering additional benefits beyond statutory requirements
7. Release of Claims: Mutual release of claims when negotiating a settlement agreement
1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, leave, and statutory benefits
2. Schedule 2 - Company Property Inventory: List of all company property to be returned
3. Schedule 3 - Handover Checklist: Detailed list of tasks and responsibilities to be handed over
4. Appendix A - Statutory Benefits Calculation: Calculation of termination benefits as per Employment Act 1955
5. Appendix B - Outstanding Obligations: List of any outstanding obligations or commitments from either party
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Relevant Industries
Banking and Finance
Manufacturing
Technology
Retail
Healthcare
Education
Professional Services
Construction
Hospitality
Telecommunications
Energy and Utilities
Logistics and Transportation
Relevant Teams
Human Resources
Legal
Compliance
Senior Management
Finance
Administration
Operations
Relevant Roles
HR Manager
Legal Counsel
Chief Executive Officer
Department Manager
Human Resources Director
Compliance Officer
General Manager
Operations Manager
Finance Director
Administrative Manager
Project Manager
Line Manager
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