The Discontinuance of Service Letter is a crucial document in Malaysian employment practice, used when an employer needs to formally terminate an employment relationship. This document must be drafted in compliance with Malaysian employment legislation, particularly the Employment Act 1955, Industrial Relations Act 1967, and related regulations. It is typically issued in situations such as redundancy, retirement, performance-based termination, or other legitimate business reasons. The letter should clearly state the termination details, notice period, final payments, and post-employment obligations. It serves as a legal record of the employment termination and helps protect both employer and employee interests by clearly documenting the terms of the discontinuance. The document needs to be carefully drafted to ensure it meets all legal requirements and provides clear communication to the employee regarding their employment termination.
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1. Letter Header and Date: Company letterhead, date, and reference number
2. Recipient Details: Employee's full name, position, and address
3. Subject Line: Clear indication that this is a Discontinuance of Service notice
4. Opening Statement: Reference to employment contract and formal notification of service discontinuance
5. Effective Date: Clear statement of when the employment will terminate
6. Notice Period: Details of notice period or payment in lieu of notice
7. Final Payment Details: Overview of final salary, benefits, and other entitlements
8. Company Property: Instructions regarding return of company property
9. Acknowledgment: Space for employee signature and date of receipt
10. Closing: Signature block for authorized company representative
1. Reason for Discontinuance: Include when termination is due to specific circumstances like redundancy, retirement, or performance issues
2. Garden Leave: Include when employee is required to serve notice period away from workplace
3. Non-Compete Reminder: Include when employment contract contains post-employment restrictions
4. Continuation of Benefits: Include when certain benefits continue post-employment
5. Reference Provision: Include when company agrees to provide employment references
6. Exit Interview: Include when an exit interview is required
7. Outstanding Loans: Include when there are outstanding company loans or advances to be settled
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, notice period, leave encashment, and statutory benefits
2. Schedule B - Handover Checklist: List of tasks, documents, and responsibilities to be handed over
3. Schedule C - Company Property List: Detailed list of company property to be returned
4. Schedule D - Employee Benefits Summary: Summary of benefits status and post-employment continuation details
Relevant legal definitions
Clauses
Notice of Termination
Effective Date
Final Payment
Notice Period
Return of Property
Confidentiality
Non-Competition
Non-Solicitation
Final Settlement
Benefits Termination
Reference Provision
Outstanding Obligations
Acknowledgment
Handover Requirements
Post-Employment Restrictions
Full and Final Settlement
Governing Law
Statutory Compliance
Severance Payment
Leave Settlement
Effective Date
Final Payment
Notice Period
Return of Property
Confidentiality
Non-Competition
Non-Solicitation
Final Settlement
Benefits Termination
Reference Provision
Outstanding Obligations
Acknowledgment
Handover Requirements
Post-Employment Restrictions
Full and Final Settlement
Governing Law
Statutory Compliance
Severance Payment
Leave Settlement
Relevant Industries
Manufacturing
Financial Services
Technology
Retail
Healthcare
Education
Construction
Professional Services
Hospitality
Telecommunications
Energy
Transportation
Real Estate
Agriculture
Mining
Relevant Teams
Human Resources
Legal
Compliance
Corporate Secretariat
Senior Management
Operations
Administration
Employee Relations
Payroll
Finance
Relevant Roles
HR Manager
HR Director
Legal Counsel
Company Secretary
HR Business Partner
Employment Relations Manager
HR Operations Manager
Compliance Officer
HR Administrator
Office Manager
Department Head
Managing Director
CEO
Line Manager
Operations Director
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