The Discontinuation Of Services Letter To Employee is a crucial document in Malaysian employment practice, used when an employer needs to formally terminate an employment relationship. It must comply with the Employment Act 1955 and related Malaysian employment legislation, ensuring proper documentation of the termination process. This document is essential for protecting both employer and employee interests, clearly stating termination terms, notice periods, final settlements, and statutory entitlements. It serves as official documentation for employment records and may be required for various purposes including unemployment benefits claims, verification of employment history, and potential legal proceedings. The letter should be drafted with careful attention to legal requirements while maintaining professional courtesy and clarity.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee with full name and position
2. Subject Line: Clear indication that this is a discontinuation of services/termination notice
3. Opening Statement: Reference to previous discussions (if any) and clear statement of the decision to terminate employment
4. Termination Details: Specific date of termination, notice period details, and last working day
5. Legal Entitlements: Details of final salary, prorated bonus (if applicable), unused leave encashment, and statutory termination benefits as per Employment Act 1955
6. Company Property: Requirements for returning company property, documents, and equipment
7. Final Clearance: Process for handover of work responsibilities and obtaining necessary clearances
8. Closing Statement: Expression of appreciation for service and good wishes for future endeavors
9. Signature Block: Authorized signatory details with designation and company stamp
1. Garden Leave Clause: Include when the employee is being placed on garden leave during the notice period
2. Non-Compete Reminder: Include if the employee's contract contains post-employment restrictions that need to be reinforced
3. Benefits Continuation: Include if there are any benefits that continue post-termination or special arrangements for medical/insurance coverage
4. Exit Interview: Include if the company wishes to conduct an exit interview
5. Reference Letter Provision: Include if the company is willing to provide a reference letter
6. Confidentiality Reminder: Include to remind about ongoing obligations regarding confidential information
7. Outplacement Support: Include if the company is offering career transition assistance
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, notice pay, statutory termination benefits, and other entitlements
2. Schedule B - Benefits Summary: Summary of benefits status and post-employment continuation details
3. Schedule C - Handover Checklist: List of items and responsibilities to be handed over before departure
4. Schedule D - Company Property Checklist: List of company property to be returned
Relevant legal definitions
Clauses
Termination Notice
Notice Period
Final Settlement
Statutory Benefits
Leave Encashment
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Final Clearance
Reference Provision
Post-Employment Obligations
Benefits Cessation
Full and Final Settlement
Acknowledgment
Garden Leave
Intellectual Property Rights
Dispute Resolution
Governing Law
Notice Period
Final Settlement
Statutory Benefits
Leave Encashment
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Final Clearance
Reference Provision
Post-Employment Obligations
Benefits Cessation
Full and Final Settlement
Acknowledgment
Garden Leave
Intellectual Property Rights
Dispute Resolution
Governing Law
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Professional Services
Hospitality
Telecommunications
Energy
Transportation
Real Estate
Media and Entertainment
Agriculture
Relevant Teams
Human Resources
Legal
Compliance
Senior Management
Administration
Employee Relations
Operations
Relevant Roles
Chief Executive Officer
Human Resources Director
Department Manager
Legal Counsel
HR Manager
HR Business Partner
Personnel Administrator
Employee Relations Manager
HR Operations Manager
Compliance Officer
Department Director
Office Manager
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