Employment Contract Termination Letter By Employee Template for Malaysia

When you decide to resign from your job in Malaysia, you need to provide formal written notice to your employer through an Employment Contract Termination Letter. This document is not just a courtesy—it's a legal requirement under the Employment Act 1955 that protects both your rights and your employer's interests during the resignation process.

When do you need this document?

You must submit this letter whenever you voluntarily terminate your employment contract in Malaysia. Whether you're leaving for a better opportunity, personal reasons, or career change, formal written notice is mandatory. The letter is required regardless of your position level, from entry-level employees to senior management. You'll also need this document if you're serving probationary period and wish to resign, though different notice periods may apply. Additionally, this letter is essential when you're resigning due to constructive dismissal situations where you feel compelled to leave due to employer conduct.

Key legal considerations

Your resignation letter must comply with several critical legal requirements under Malaysian law. The notice period is determined by your length of service: 2 weeks for employees with less than 2 years of service, 4 weeks for those with 2-5 years of service, and 6 weeks for employees with over 5 years of service. However, your employment contract may specify longer notice periods, which would take precedence. You must clearly state your last working day and confirm you'll serve the full notice period unless your employer agrees to waive it. The letter should address outstanding matters such as annual leave balance, which must be paid out according to Section 60E of the Employment Act 1955. You should also outline your handover responsibilities to ensure smooth transition and maintain professional relationships.

Legal requirements in Malaysia

Under the Employment Act 1955, your termination letter must be in writing and delivered to the appropriate authority within your company, typically your immediate supervisor and Human Resources department. The letter must specify the exact termination date and confirm compliance with statutory notice requirements. Malaysian employment law requires that you continue performing your duties diligently during the notice period unless relieved by your employer. Your employer must settle all outstanding wages, including salary, overtime, and annual leave compensation within 7 days of your last working day as mandated by the Employment Act. The Industrial Relations Act 1967 also governs proper termination procedures, ensuring fair treatment throughout the process. Additionally, if you're covered by a collective agreement or specific industry regulations, your letter should acknowledge compliance with any additional requirements under those frameworks.