Authorization Letter For Last Pay for Malaysia

Authorization Letter For Last Pay Template for Malaysia

An Authorization Letter for Last Pay is a formal document used in Malaysia that enables a former employee to authorize another person to collect their final payment and benefits from their previous employer. This document, governed by Malaysian employment law including the Employment Act 1955, serves as a legal instrument that grants specific powers to a designated individual to act on behalf of the former employee in matters relating to final payment collection. The letter typically includes detailed identification of all parties involved, specific authorizations granted, and must comply with Malaysian legal requirements for such authorizations, including proper witnessing and verification procedures.

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What is a Authorization Letter For Last Pay?

An Authorization Letter For Last Pay is essential in situations where a former employee cannot personally collect their final payment and benefits from their previous employer in Malaysia. This document becomes necessary in various circumstances, such as when the employee has relocated, is unable to be physically present, or has other constraints preventing direct collection. The letter must comply with Malaysian employment laws, particularly the Employment Act 1955 and related regulations. It should clearly identify the authorizer (former employee), the authorized person, and specify the scope of authorization. The document typically includes details about the employment relationship, final payment components, and any specific instructions for collection. It serves as a legal protection for all parties involved and ensures smooth processing of final payments while maintaining compliance with Malaysian labor laws and company policies.

What sections should be included in a Authorization Letter For Last Pay?

1. Date and Place: Current date and location where the letter is being executed

2. Recipient Details: Full name and address of the employer/company handling the last pay

3. Subject Line: Clear indication that this is an Authorization Letter for Last Pay

4. Author Introduction: Details of the person granting authorization (former employee), including full name, employee ID, and last position held

5. Authorized Person Details: Complete information about the person being authorized, including full name, ID number, and relationship to the author

6. Authorization Statement: Clear statement of authorization, specifying the power to collect last pay and related benefits

7. Duration of Authorization: Validity period of the authorization

8. Contact Information: Contact details for both the authorizer and authorized person

9. Signature Block: Space for signatures of the authorizer, authorized person, and witnesses

What sections are optional to include in a Authorization Letter For Last Pay?

1. Specific Entitlements: Detailed list of specific payments or benefits to be collected (used when there are multiple components to the final payment)

2. Medical Authorization: Additional authorization for collecting medical benefit claims or insurance settlements, if applicable

3. Bank Account Details: Specific bank account information for direct transfer, if payment is to be made electronically

4. Reason for Authorization: Explanation of why the authorization is needed (used when required by company policy or when the reason adds context)

5. Revocation Clause: Terms under which the authorization can be revoked (used in cases where the authorization period is longer or when required by company policy)

What schedules should be included in a Authorization Letter For Last Pay?

1. Copy of Authorizer's ID: Certified copy of the former employee's identification document

2. Copy of Authorized Person's ID: Certified copy of the authorized person's identification document

3. Witness Declarations: Signed declarations from witnesses verifying the authenticity of the authorization

4. Employment Verification: Copy of last payslip or employment letter proving employment relationship

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Industries

Employment Act 1955: The primary legislation governing employment relationships in Malaysia, including provisions for termination of employment and payment of wages. Sections 69 and 70 specifically deal with payment of wages and deductions.

Powers of Attorney Act 1949: Governs the creation and execution of powers of attorney in Malaysia, relevant for ensuring the authorization letter meets legal requirements for delegating authority to collect payment.

Income Tax Act 1967: Relevant for tax implications on final payments and necessary deductions, particularly Section 83 regarding employer's obligations for final payments.

Minimum Wages Order 2022: Ensures that final payment calculations comply with current minimum wage requirements.

Contracts Act 1950: Governs the basic principles of contract formation and authorization in Malaysia, ensuring the letter meets legal requirements for validity.

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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