A Friendly Termination Of Services Letter is utilized when both employer and employee in Malaysia mutually agree to end their employment relationship on amicable terms. This document is crucial in Malaysian business practice, particularly when compliance with the Employment Act 1955 and Industrial Relations Act 1967 is required. It serves as official documentation of the mutual separation, protecting both parties' interests while maintaining professional relationships. The letter typically includes termination date, final settlement details, benefit arrangements, confidentiality obligations, and property return procedures. It's particularly valuable in situations where both parties wish to maintain good relations for future reference or business opportunities, while ensuring all legal and administrative requirements are properly addressed.
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1. Letter Header: Company letterhead, date, reference number, and full address details of both the employer and employee
2. Salutation: Formal greeting addressing the employee by name and title
3. Subject Line: Clear indication that this is a mutual termination of employment letter
4. Acknowledgment: Reference to prior discussions and mutual agreement to terminate the employment relationship
5. Effective Date: Clear statement of the last day of employment
6. Terms of Separation: Basic terms including notice period handling and final working arrangements
7. Final Payment Details: Overview of salary, unused leave, and other statutory payments due
8. Company Property: List of company property to be returned and process for return
9. Confidentiality: Reminder of continuing obligations regarding confidential information
10. Reference Provision: Statement about providing employment references
11. Appreciation: Expression of gratitude for service and well-wishes
12. Closing: Formal closing, signature blocks for both parties
1. Non-Compete Reminder: Include when the original employment contract contained non-compete clauses that survive termination
2. Benefits Continuation: Include when there are specific arrangements for continuation or termination of benefits
3. Outstanding Projects: Include when there is a need to address handover of specific projects or responsibilities
4. Stock Options/Share Awards: Include when employee has outstanding company shares or stock options
5. Accommodation Arrangements: Include when company-provided housing is part of the employment package
6. Training Bond: Include when there are outstanding training bonds to be addressed or waived
7. Intellectual Property: Include when the role involved creation of IP that needs to be specifically addressed
1. Schedule A - Final Payment Calculation: Detailed breakdown of all final payments including salary, prorated bonus, leave encashment, and statutory payments
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned including IT equipment, access cards, documents
3. Schedule C - Benefit Details: Detailed information about the status and handling of various employment benefits
4. Appendix 1 - Handover Schedule: Timeline and details for the handover of responsibilities, if applicable
Relevant legal definitions
Effective Date
Final Settlement
Company Property
Confidential Information
Notice Period
Outstanding Benefits
Statutory Payments
Employment Contract
Company
Employee
Termination Benefits
Leave Entitlement
Final Salary
Severance Payment
Identity Card
Bank Account
Handover Documents
Reference Letter
Professional Conduct
Company Premises
Final Settlement
Company Property
Confidential Information
Notice Period
Outstanding Benefits
Statutory Payments
Employment Contract
Company
Employee
Termination Benefits
Leave Entitlement
Final Salary
Severance Payment
Identity Card
Bank Account
Handover Documents
Reference Letter
Professional Conduct
Company Premises
Clauses
Effective Date
Final Settlement
Notice Period
Confidentiality
Return of Property
Non-Disparagement
Reference Provision
Benefits Termination
Leave Settlement
Final Payment
Mutual Release
Continuing Obligations
Handover Requirements
Data Protection
Company Documentation
Intellectual Property Rights
Non-Competition
Non-Solicitation
Severance Benefits
Tax Matters
Governing Law
Dispute Resolution
Final Settlement
Notice Period
Confidentiality
Return of Property
Non-Disparagement
Reference Provision
Benefits Termination
Leave Settlement
Final Payment
Mutual Release
Continuing Obligations
Handover Requirements
Data Protection
Company Documentation
Intellectual Property Rights
Non-Competition
Non-Solicitation
Severance Benefits
Tax Matters
Governing Law
Dispute Resolution
Relevant Industries
Technology
Manufacturing
Financial Services
Healthcare
Education
Retail
Professional Services
Construction
Hospitality
Telecommunications
Energy
Transportation
Real Estate
Agriculture
Mining
Relevant Teams
Human Resources
Legal
Compliance
Administration
Operations
Management
Finance
Corporate Services
Employee Relations
People Operations
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Department Manager
Chief Executive Officer
Chief Financial Officer
Operations Manager
Project Manager
Administrative Manager
HR Executive
Legal Manager
Compliance Officer
Department Supervisor
HR Business Partner
Office Manager
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