Document background
The Mutual Consent Termination agreement is utilized when both employer and employee in Malaysia mutually agree to end their employment relationship on agreed terms. This document is particularly relevant when parties wish to document a clean break from the employment relationship while ensuring all legal requirements under Malaysian law are met. It includes comprehensive details about final payments, benefits, confidentiality obligations, and mutual releases, providing protection for both parties. The agreement should comply with the Employment Act 1955, Contracts Act 1950, and other relevant Malaysian legislation. It's commonly used during corporate restructuring, amicable separations, or when both parties wish to terminate the employment relationship without the typical notice period requirements. The document helps prevent future disputes by clearly documenting all agreed terms and conditions of the separation.
