Employment Contract Cancellation Letter for Malaysia

Employment Contract Cancellation Letter Template for Malaysia

A formal document governed by Malaysian employment law that officially terminates an existing employment contract between an employer and employee. This letter outlines the terms of termination, including the effective date, notice period, final payment details, and post-employment obligations. It ensures compliance with the Malaysian Employment Act 1955 and other relevant legislation, while providing clear documentation of the termination process and protecting both parties' interests. The letter serves as a legal record of the employment relationship's conclusion and specifies all necessary arrangements for the transition.

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What is a Employment Contract Cancellation Letter?

The Employment Contract Cancellation Letter is a crucial document in Malaysian employment relations, used when either party seeks to formally end an employment relationship. It must comply with Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967. This document is essential for documenting the official termination of employment, whether due to resignation, redundancy, or other circumstances. It typically includes key information such as termination date, notice period, final payment calculations, benefit arrangements, and post-employment obligations. The letter serves both as a legal record and a practical guide for both parties during the transition period, helping to prevent future disputes and ensure a proper conclusion to the employment relationship.

What sections should be included in a Employment Contract Cancellation Letter?

1. Letter Header: Company letterhead, date, and reference number

2. Recipient Details: Employee's full name and address

3. Subject Line: Clear indication that this is an employment contract cancellation/termination letter

4. Contract Reference: Reference to the original employment contract including date and position

5. Termination Statement: Clear statement of contract termination and effective date

6. Notice Period: Confirmation of notice period and last working day

7. Final Payment Details: Overview of final salary, unused leave, and other entitlements

8. Company Property: List of company items to be returned

9. Closing Statement: Professional closure including acknowledgment of service

10. Signature Block: Authorized signatory details and company stamp

What sections are optional to include in a Employment Contract Cancellation Letter?

1. Garden Leave: Include when employee is being placed on garden leave during notice period

2. Non-Compete Reminder: Include when original contract contains non-compete or confidentiality clauses

3. Handover Instructions: Include when specific handover procedures are required

4. Benefits Continuation: Include when there are benefits extending beyond termination date

5. Exit Interview: Include when company policy requires an exit interview

6. References: Include when addressing future reference provisions

What schedules should be included in a Employment Contract Cancellation Letter?

1. Final Payment Breakdown: Detailed calculation of final payment including salary, leave, bonuses, and deductions

2. Company Property Checklist: Itemized list of company property to be returned

3. Benefit Entitlements Summary: Summary of any continuing benefits or benefit conversions

4. Handover Document List: List of documents and responsibilities to be handed over

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

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Professional Services

Hospitality

Telecommunications

Energy

Transportation

Agriculture

Mining

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Administration

Executive Management

Corporate Secretariat

Employee Relations

Operations

Management

Relevant Roles

HR Manager

HR Director

Legal Counsel

Company Secretary

Managing Director

HR Executive

Compliance Officer

Employee Relations Manager

HR Business Partner

Operations Manager

Department Head

General Manager

Chief Executive Officer

Administrative Manager

Legal Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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