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Contract Termination Letter To Employee

Contract Termination Letter To Employee Template for Malaysia

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Contract Termination Letter To Employee

"I need a Contract Termination Letter To Employee under Malaysian law for immediate termination due to consistent poor performance, including all necessary clauses about final payment calculation and the return of company property."

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Document background
The Contract Termination Letter To Employee is a crucial document in Malaysian employment relations, used when an employer needs to formally end an employment relationship. This document must strictly comply with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967, ensuring proper notice periods and termination benefits are provided. It serves multiple purposes: legally documenting the termination decision, communicating essential information to the employee about their final entitlements, outlining the termination process, and protecting the employer's interests regarding confidentiality and company property. The letter should be drafted carefully to maintain professionalism while meeting all legal requirements, as it may be scrutinized in potential employment disputes or legal proceedings.
Suggested Sections

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

2. Subject Line: Clear indication that this is a termination notice

3. Opening Statement: Direct statement of employment termination with reference to relevant contract clause or employment terms

4. Termination Details: Effective date of termination and notice period details

5. Reason for Termination: Clear but concise explanation of the termination reason (if applicable and appropriate)

6. Final Payment Details: Information about final salary, notice pay, and other statutory entitlements

7. Company Property: List of company property to be returned and process for return

8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

9. Next Steps: Clear instructions on handover process and exit procedures

10. Closing: Professional closing with contact details for HR queries

Optional Sections

1. Garden Leave: Used when employee is required to serve notice period away from office

2. Non-Compete Reminder: Include if employment contract contains post-employment restrictions

3. Benefits Continuation: Details of any benefits that continue post-termination

4. Reference Policy: Company's position on providing future references

5. Outplacement Support: Details of any career transition support offered

6. Legal Rights Statement: Statement about employee's right to seek legal counsel

7. Settlement Agreement Option: If offering additional benefits in exchange for waiving claims

Suggested Schedules

1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, notice pay, annual leave, and other entitlements

2. Schedule B - Company Property Checklist: Itemized list of company property to be returned

3. Schedule C - Handover Document List: List of documents and tasks requiring handover

4. Appendix 1 - Exit Process Guide: Step-by-step guide for completion of exit procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




















Clauses




















Relevant Industries

Banking & Finance

Manufacturing

Technology

Retail

Healthcare

Education

Construction

Professional Services

Hospitality

Telecommunications

Energy

Transportation

Real Estate

Media & Entertainment

Agriculture

Relevant Teams

Human Resources

Legal

Corporate Secretarial

Operations

Administration

Compliance

Management

Relevant Roles

Human Resources Director

HR Manager

HR Executive

Legal Counsel

Company Secretary

Department Manager

Line Manager

Chief Executive Officer

Managing Director

Operations Manager

Regional Manager

Branch Manager

Administrative Manager

General Manager

Chief Human Resources Officer

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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