90 Day Termination Notice Template for Malaysia

A 90 Day Termination Notice is a formal legal document that initiates the termination of employment under Malaysian law, providing both employer and employee with a comprehensive framework for ending the employment relationship. This extended notice period is typically required for senior positions, executive roles, or situations where significant handover and transition periods are necessary to maintain business continuity.

When do you need this document?

You need this notice when terminating employment relationships that require extended notice periods under your employment contract or Malaysian law. This typically applies to senior management positions, executive roles, or specialized positions where knowledge transfer is critical. The document is essential when your employment contract specifies a 90-day notice period, or when terminating employees in senior positions where immediate departure would significantly disrupt business operations. You should also use this notice when both parties agree to a longer transition period to ensure proper handover of responsibilities, client relationships, and ongoing projects.

Key legal considerations

Under Malaysian employment law, the notice must comply with your employment contract terms and statutory requirements. The document should clearly specify the effective date of termination, the 90-day notice period, and any obligations during the transition period. You must address final settlement matters including salary, benefits, annual leave entitlements, and any outstanding payments. The notice should reference relevant contract clauses and legal basis for termination, whether it's resignation, mutual agreement, or employer-initiated termination. Consider including confidentiality obligations, non-compete clauses if applicable, and handover requirements. Both parties should understand their rights and obligations during the notice period, including work performance expectations and potential payment in lieu of notice arrangements.

Legal requirements in Malaysia

Malaysian employment law, primarily governed by the Employment Act 1955, requires proper notice periods for employment termination. While the Act typically requires shorter notice periods, employment contracts can specify longer periods such as 90 days for senior positions. The notice must be in writing and clearly communicate the termination date and reasons if applicable. Under the Employment (Termination and Lay-Off Benefits) Regulations 1980, you must ensure proper calculation and payment of termination benefits. The Industrial Relations Act 1967 provides additional protections against unfair dismissal, so ensure the termination process follows proper procedures. The Contracts Act 1950 governs the validity of contract terms including notice periods, so ensure your notice complies with contractual obligations and doesn't breach any statutory protections for employees.