The Fixed Term Contract Termination Letter is a crucial document used in Malaysian employment relationships to formally conclude fixed-term employment arrangements. It must comply with Malaysian employment legislation, particularly the Employment Act 1955, Industrial Relations Act 1967, and relevant regulations. This document is typically used when a fixed-term contract is approaching its end date, when early termination is required, or when both parties have agreed to end the employment relationship. The letter should clearly state the termination date, outline final payment arrangements, address the return of company property, and specify any post-employment obligations. It serves as official documentation of the employment termination and helps protect both employer and employee interests by clearly stating all termination terms and conditions.
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1. Letter Header: Company letterhead, date, reference number, and full recipient details including name, position, and address
2. Subject Line: Clear indication that this is a contract termination letter
3. Opening Statement: Reference to the fixed-term contract including its start date and original end date
4. Termination Notice: Clear statement of termination and the effective date
5. Legal Basis: Reference to relevant contract clause or legal provision allowing the termination
6. Final Payment Details: Information about final salary, pro-rated benefits, and other statutory payments
7. Company Property: Request for return of company property and documents
8. Closing Statement: Expression of appreciation and good wishes
9. Signature Block: Authorized signatory details including name, designation, and company stamp
1. Reason for Termination: Include when termination is due to specific circumstances and needs to be documented
2. Handover Instructions: Include when there are specific projects or responsibilities that need formal handover
3. Non-Compete Reminder: Include when the original contract contained non-compete or confidentiality clauses that survive termination
4. Certificate of Service: Include when the employee has requested or company policy requires providing a service letter
5. Exit Interview: Include when company policy requires an exit interview process
6. Benefits Continuation: Include when there are benefits that continue post-termination or require employee action
1. Final Payment Calculation: Detailed breakdown of final payment including salary, pro-rated benefits, and any statutory payments
2. Company Property Checklist: List of company property to be returned including IT equipment, access cards, documents
3. Outstanding Matters List: List of any pending tasks, projects, or responsibilities requiring handover
4. Benefits Summary: Summary of any benefits continuation or termination and required actions by the employee
Relevant legal definitions
Clauses
Termination Notice
Effective Date
Final Payment
Return of Property
Confidentiality
Non-Disclosure
Intellectual Property
Handover Requirements
Reference Provision
Full and Final Settlement
Outstanding Obligations
Non-Compete Obligations
Non-Solicitation
Statutory Compliance
Benefits Termination
Exit Procedures
Document Return
Final Release
Governing Law
Effective Date
Final Payment
Return of Property
Confidentiality
Non-Disclosure
Intellectual Property
Handover Requirements
Reference Provision
Full and Final Settlement
Outstanding Obligations
Non-Compete Obligations
Non-Solicitation
Statutory Compliance
Benefits Termination
Exit Procedures
Document Return
Final Release
Governing Law
Relevant Industries
Manufacturing
Technology
Construction
Education
Healthcare
Professional Services
Financial Services
Retail
Hospitality
Energy
Telecommunications
Media and Entertainment
Agriculture
Mining
Transportation and Logistics
Relevant Teams
Human Resources
Legal
Compliance
Administration
Operations
Management
Corporate Secretariat
Employee Relations
Industrial Relations
Relevant Roles
HR Manager
HR Director
Legal Counsel
Department Manager
Project Manager
Contract Administrator
HR Executive
Legal Manager
Compliance Officer
Operations Manager
General Manager
Managing Director
Chief Human Resources Officer
Administration Manager
Company Secretary
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