Employee Release Form for Malaysia

Employee Release Form Template for Malaysia

A comprehensive legal document governed by Malaysian employment law that formalizes the termination of an employment relationship between an employer and employee. This document includes terms for the settlement of all claims, details of final payments, confidentiality provisions, and mutual releases of liability. It ensures compliance with Malaysian employment regulations, including the Employment Act 1955 and Industrial Relations Act 1967, while providing legal protection for both parties through clear documentation of the termination terms and conditions.

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What is a Employee Release Form?

The Employee Release Form is a crucial document used in Malaysian employment contexts when formally concluding an employment relationship. It serves as a legally binding agreement that protects both employer and employee interests during employment termination, whether due to resignation, retirement, redundancy, or mutual agreement. This document must comply with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967, while addressing specific terms such as final settlements, benefit arrangements, and mutual releases. It typically includes provisions for confidentiality, non-disparagement, and the return of company property, while ensuring all statutory and contractual obligations are properly addressed.

What sections should be included in a Employee Release Form?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant identification numbers

2. Background: Brief overview of the employment relationship, including start date, position, and reason for termination

3. Definitions: Key terms used throughout the agreement, including 'Company', 'Claims', 'Effective Date', and 'Settlement Sum'

4. Termination of Employment: Confirmation of employment termination date and final working day

5. Settlement Payment: Details of the settlement sum, payment method, and timing

6. Release of Claims: Comprehensive release of all claims against the employer, including statutory and contractual claims

7. Confidentiality: Obligations regarding confidentiality of the agreement terms and company information

8. Return of Company Property: Confirmation of return of all company property and documents

9. Non-Disparagement: Mutual agreements not to make negative statements about each other

10. Tax Indemnity: Employee's responsibility for tax liabilities arising from the settlement payment

11. Governing Law: Specification that Malaysian law governs the agreement

12. Acknowledgment: Employee's confirmation of understanding and voluntary acceptance of terms

What sections are optional to include in a Employee Release Form?

1. Post-Employment Restrictions: Reaffirmation of existing non-compete and non-solicitation obligations, used when original employment contract contained such provisions

2. Reference: Terms regarding future employment references, used when agreed as part of the settlement

3. Legal Advice: Confirmation that employee received independent legal advice, used in cases of complex settlements or when required by company policy

4. Medical Benefits: Continuation or termination of medical benefits, used when applicable to the employee

5. Share Options/Awards: Treatment of outstanding share options or awards, used when employee participated in share schemes

6. Retirement Benefits: Special provisions for retirement cases, used when termination is due to retirement

7. Assistance with Ongoing Matters: Employee's agreement to assist with transitional matters or legal proceedings, used when necessary for business continuity

What schedules should be included in a Employee Release Form?

1. Schedule 1 - Settlement Payment Breakdown: Detailed breakdown of all payment components including salary, notice pay, statutory termination benefits, and ex-gratia payments

2. Schedule 2 - Company Property Checklist: List of all company property to be returned by the employee

3. Schedule 3 - Outstanding Claims and Benefits: List of all claims and benefits being settled under the agreement

4. Appendix A - Resignation Letter: Standard form resignation letter to be signed by employee

5. Appendix B - Certificate of Completion: Confirmation of return of company property and completion of handover duties

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

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What is a Employee Release Form?

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What sections are optional to include in a Employee Release Form?

What schedules should be included in a Employee Release Form?

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