The Early Termination Of Employment Contract Letter is a crucial document used when an employer or employee needs to end an employment relationship before its intended duration or contractual term. This document, governed by Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967, serves multiple purposes: it formally communicates the termination decision, specifies the last working day, outlines the notice period or payment in lieu of notice, details final benefit calculations, and addresses post-employment obligations. The letter must be carefully drafted to ensure compliance with Malaysian labor regulations, including proper notice periods, statutory termination benefits, and procedural requirements. It's essential for risk management and maintaining clear documentation of the termination process.
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1. Letter Header and Date: Company letterhead, date, and reference number if applicable
2. Recipient Details: Employee's full name, position, and address
3. Subject Line: Clear indication that this is regarding early termination of employment
4. Termination Notice: Formal statement of contract termination, citing relevant clause from employment contract
5. Effective Date: Clear statement of the last day of employment
6. Reason for Termination: Brief, professional explanation of termination reason if appropriate
7. Notice Period Details: Information about notice period or payment in lieu of notice
8. Final Payment Details: Overview of final salary, unused leave, and other entitlements
9. Company Property: Instructions regarding return of company property
10. Closing Statement: Professional closure including acknowledgment of service
11. Signature Block: Space for authorized signatory and company stamp
1. Garden Leave Provisions: Include when employee is being placed on garden leave during notice period
2. Confidentiality Reminder: Include when need to emphasize ongoing confidentiality obligations
3. Post-Employment Restrictions: Include when reminding of non-compete or non-solicitation clauses
4. Handover Instructions: Include when specific handover of duties/projects is required
5. Reference Provision: Include when addressing future reference requests
6. Medical Benefits Extension: Include if continuing medical benefits beyond termination date
7. Exit Interview: Include when arranging for an exit interview
8. Outstanding Loans: Include when addressing any outstanding company loans or advances
1. Schedule A - Termination Benefits Calculation: Detailed breakdown of final payment including salary, notice period, leave encashment, and other benefits
2. Schedule B - Company Property Checklist: List of company property to be returned before final clearance
3. Schedule C - Handover Checklist: Detailed list of tasks, projects, and responsibilities to be handed over
4. Appendix 1 - Employee Acknowledgment Form: Form for employee to acknowledge receipt and acceptance of termination terms
Relevant legal definitions
Company
Employee
Employment Contract
Termination Date
Notice Period
Final Settlement
Basic Salary
Termination Benefits
Confidential Information
Company Property
Garden Leave
Statutory Benefits
Restrictive Covenants
Severance Payment
Pro-rated Annual Leave
Handover Period
Final Clearance
Exit Process
Employment Act
Outstanding Obligations
Employee
Employment Contract
Termination Date
Notice Period
Final Settlement
Basic Salary
Termination Benefits
Confidential Information
Company Property
Garden Leave
Statutory Benefits
Restrictive Covenants
Severance Payment
Pro-rated Annual Leave
Handover Period
Final Clearance
Exit Process
Employment Act
Outstanding Obligations
Clauses
Notice of Termination
Effective Date
Final Salary Payment
Notice Period
Payment in Lieu of Notice
Termination Benefits
Leave Entitlements
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Final Settlement
Outstanding Loans
Benefits Cessation
Reference Provision
Exit Procedures
Tax Matters
Full and Final Settlement
Acknowledgment and Acceptance
Effective Date
Final Salary Payment
Notice Period
Payment in Lieu of Notice
Termination Benefits
Leave Entitlements
Company Property Return
Confidentiality
Non-Competition
Non-Solicitation
Handover Requirements
Final Settlement
Outstanding Loans
Benefits Cessation
Reference Provision
Exit Procedures
Tax Matters
Full and Final Settlement
Acknowledgment and Acceptance
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Professional Services
Hospitality
Telecommunications
Energy
Agriculture
Mining
Transportation
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Corporate Secretariat
Executive Management
Administration
Employee Relations
Payroll
Operations
Relevant Roles
HR Director
HR Manager
Legal Counsel
Company Secretary
Chief Executive Officer
Managing Director
Department Head
Line Manager
HR Business Partner
Compliance Officer
Employee Relations Manager
HR Operations Manager
Chief Human Resources Officer
Personnel Manager
Administrative Manager
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