Clearance Letter For Employee for Malaysia

Clearance Letter For Employee Template for Malaysia

A Clearance Letter For Employee is a formal document issued under Malaysian employment law that confirms an employee has completed all necessary clearance procedures upon termination of employment. The document serves as official confirmation that the employee has returned all company property, settled any outstanding obligations, and completed necessary handover procedures. Governed by Malaysian employment legislation, particularly the Employment Act 1955, this document provides legal protection for both employer and employee by clearly documenting the completion of all exit procedures and settlements.

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What is a Clearance Letter For Employee?

The Clearance Letter For Employee is a crucial document in Malaysian employment practice that serves as the final step in the employment separation process. It is typically issued after an employee's resignation, termination, or retirement has been processed and all company clearance procedures have been completed. The document confirms that the employee has returned all company assets, settled any outstanding financial matters, completed necessary handovers, and fulfilled all exit requirements. This letter is essential for maintaining clear records and protecting both parties' interests under Malaysian employment law, particularly in compliance with the Employment Act 1955 and related regulations. It can also serve as a reference document for future employment and helps prevent potential disputes regarding the settlement of employment-related matters.

What sections should be included in a Clearance Letter For Employee?

1. Employee Information: Full name, employee ID, position/designation, and department of the employee

2. Employment Period: Confirmation of employment start and end dates

3. Clearance Confirmation: Statement confirming that all company properties, documents, and assets have been returned

4. Financial Settlement: Confirmation that all financial matters including final salary, benefits, and claims have been settled

5. Non-Disclosure Reminder: Reminder of ongoing obligations regarding confidentiality and company information

6. General Conduct Statement: Confirmation of satisfactory conduct during employment period

What sections are optional to include in a Clearance Letter For Employee?

1. Project Handover Status: Used when employee was involved in specific projects requiring formal handover confirmation

2. Outstanding Loans/Advances: Include when there were company loans or advances that needed settlement

3. Training Bond Status: Required when employee was under any training bonds or sponsored education programs

4. IT Systems Access: Specific section for employees with high-level access to IT systems requiring formal deactivation confirmation

5. Client/Vendor Relationships: For employees who managed external relationships requiring formal handover

What schedules should be included in a Clearance Letter For Employee?

1. List of Returned Items: Detailed inventory of all company properties returned by the employee

2. Final Settlement Statement: Breakdown of final payment including salary, benefits, and any deductions

3. Handover Checklist: Checklist signed by relevant department heads confirming clearance from their respective areas

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

Service Letter

Cost

Free to use
Relevant Industries

Manufacturing

Technology

Financial Services

Healthcare

Education

Retail

Construction

Professional Services

Telecommunications

Hospitality

Logistics

Energy

Relevant Teams

Human Resources

Legal

Administration

Compliance

Corporate Secretariat

Operations

Relevant Roles

Human Resources Manager

HR Director

HR Executive

Legal Counsel

Company Secretary

Administrative Manager

Operations Manager

Department Head

HR Business Partner

Compliance 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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