End Of Probation Termination Letter Template for Malaysia

An End Of Probation Termination Letter is a formal document you need when deciding not to confirm an employee's permanent employment after their probationary period in Malaysia. This letter serves as official notice that the employment relationship will end upon completion of the probation period, ensuring compliance with Malaysian employment legislation while protecting your business interests.

When do you need this document?

You need this letter when an employee's performance during probation hasn't met your expectations, when business circumstances have changed, or when the role is no longer required. It's also necessary if the employee lacks required skills despite training, demonstrates poor work attitude, or fails to integrate with your team culture. Additionally, you'll use this document when restructuring requires position elimination or when the employee violates company policies during probation. The letter ensures transparent communication and proper documentation of your termination decision.

Key legal considerations

Your letter must clearly state the termination reason and reference the original employment contract's probationary terms. Include specific notice periods as outlined in the employment agreement or statutory minimums under Malaysian law. Document any performance issues, training provided, and improvement opportunities given during probation. Specify final settlement details including salary, unused annual leave, and any applicable benefits. Ensure the termination doesn't appear discriminatory based on race, religion, gender, or other protected characteristics. Include return of company property requirements and confidentiality obligations that continue post-employment. Consider including a clause about providing employment references if requested.

Legal requirements in Malaysia

Under the Employment Act 1955, probationary periods typically cannot exceed six months, and termination during probation requires minimal notice unless your contract specifies otherwise. The Industrial Relations Act 1967 requires that termination is conducted with just cause and proper procedure, even during probation. You must provide written notice and cannot terminate for discriminatory reasons. Ensure compliance with Minimum Notice of Termination Regulations regarding notice periods based on service length. Document the decision-making process and maintain records for potential industrial relations proceedings. The letter should be issued on company letterhead with proper authorization from HR or senior management. Consider local state employment laws that may impose additional requirements beyond federal legislation.