The Contract Non Renewal Letter To Employee is a crucial document used in Malaysian employment contexts when an organization decides not to extend or renew a fixed-term employment contract. This document must comply with Malaysian employment legislation, particularly the Employment Act 1955 and related regulations. It is typically issued before the contract's expiration date to provide adequate notice to the employee. The letter should contain specific details about the contract termination, including the final working day, arrangements for final settlements, benefit cessations, and requirements for returning company property. It serves both as a formal notification and a legal document that protects both employer and employee interests by clearly documenting the employment relationship's conclusion.
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1. Letter Header: Company letterhead, date, reference number, and employee's complete contact details
2. Subject Line: Clear indication that this is a contract non-renewal notice
3. Opening Statement: Reference to the current employment contract and its expiration date
4. Non-Renewal Notice: Clear statement of the company's decision not to renew the contract
5. Last Working Day: Specific mention of the final day of employment
6. Return of Company Property: List of company properties to be returned before the last day
7. Final Settlement: Information about final salary, unused leave, and other entitlements
8. Employee Benefits Status: Information about the status of benefits, insurance, and EPF
9. Closing Statement: Expression of appreciation and good wishes
10. Signature Block: Authorized signatory details and company stamp
1. Transition Plan: Include when handover of duties is required, detailing the transition process
2. Exit Interview: Include when the company wishes to conduct an exit interview
3. Reference Letter Offer: Include when the company is willing to provide a reference letter
4. Non-Compete Reminder: Include when the original contract contained non-compete clauses that survive termination
5. Severance Package: Include when additional compensation or benefits are being offered
6. Outstanding Projects: Include when specific projects need to be completed or handed over
7. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive contract termination
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, leave encashment, and other benefits
2. Company Property Checklist: List of company assets to be returned with their current status
3. Benefits Termination Schedule: Timeline and details of when various benefits will cease
4. Exit Clearance Form: Checklist of departments that need to clear the employee before final settlement
Relevant legal definitions
Clauses
Notice of Non-Renewal
Final Working Day
Final Settlement
Benefits Termination
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Exit Procedures
Final Payment Calculation
Outstanding Leave
Reference Provision
Post-Employment Obligations
Document Return
Full and Final Settlement
Acknowledgment
Final Working Day
Final Settlement
Benefits Termination
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Exit Procedures
Final Payment Calculation
Outstanding Leave
Reference Provision
Post-Employment Obligations
Document Return
Full and Final Settlement
Acknowledgment
Relevant Industries
Manufacturing
Technology
Financial Services
Healthcare
Education
Retail
Construction
Professional Services
Hospitality
Telecommunications
Energy
Transportation
Agriculture
Mining
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Operations
Administrative
Finance
Management
Employee Relations
Payroll
Corporate Secretariat
Relevant Roles
HR Manager
HR Director
Legal Counsel
Department Manager
Operations Director
Compliance Officer
HR Business Partner
Employee Relations Manager
HR Administrator
Company Secretary
Managing Director
CEO
Department Head
Line Manager
Regional Manager
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