The Full And Final Settlement Letter After Termination is a crucial document used in Malaysian employment contexts when concluding an employment relationship. It becomes necessary when an employee's service has been terminated, whether through resignation, mutual agreement, or unilateral termination by either party. The document serves multiple purposes: it confirms the final settlement amount including all statutory and contractual payments, provides mutual releases from future claims, ensures compliance with Malaysian employment laws, and creates a clear record of the termination settlement. This document is particularly important in Malaysia where employment relationships are heavily regulated, and proper documentation is essential for legal compliance and risk management. It typically includes calculations of final payments, treatment of benefits, tax considerations, and any post-employment obligations, all structured in accordance with Malaysian legal requirements.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a Full and Final Settlement Letter
3. Acknowledgment of Termination: Reference to employment termination date and circumstances
4. Settlement Amount: Clear statement of the total settlement sum and its components
5. Payment Terms: Details of how and when the settlement amount will be paid
6. Tax Treatment: Statement regarding tax implications and responsibilities
7. Release and Waiver: Mutual release of claims and legal rights
8. Confidentiality: Requirements regarding confidentiality of settlement terms
9. Return of Company Property: Confirmation of return of all company assets and documents
10. Acceptance Section: Space for both parties to sign and date the letter
1. Non-Disparagement Clause: Include when there's a need to prevent parties from making negative statements about each other
2. Ongoing Obligations: Include when there are continuing obligations such as non-compete or intellectual property rights
3. Reference Provision: Include when agreed to provide employment references and their nature
4. Benefits Continuation: Include when certain benefits will continue post-termination
5. Legal Advice Acknowledgment: Include when employee has received independent legal advice
6. Revocation Period: Include when providing a period for the employee to revoke acceptance
1. Schedule A - Payment Calculation: Detailed breakdown of settlement amount including salary, notice period, leave encashment, etc.
2. Schedule B - Benefits Summary: List of benefits and their treatment post-termination
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
4. Schedule D - Outstanding Claims Resolution: Details of any pending claims or reimbursements being settled
Relevant legal definitions
Company
Employee
Employment Agreement
Termination Date
Settlement Sum
Final Payment
Statutory Benefits
Confidential Information
Company Property
Release
Settlement Period
Effective Date
Employment Claims
Identity Card
Payment Date
Benefits
Notice Period
Last Working Day
Outstanding Claims
Final Settlement
Employee
Employment Agreement
Termination Date
Settlement Sum
Final Payment
Statutory Benefits
Confidential Information
Company Property
Release
Settlement Period
Effective Date
Employment Claims
Identity Card
Payment Date
Benefits
Notice Period
Last Working Day
Outstanding Claims
Final Settlement
Clauses
Acknowledgment of Termination
Settlement Payment
Payment Terms
Release and Waiver
Confidentiality
Non-Disparagement
Return of Property
Tax Compliance
Final Benefits
Legal Claims
Non-Competition
Non-Solicitation
Intellectual Property
References
Governing Law
Amendment
Severability
Entire Agreement
Acceptance
Witness
Settlement Payment
Payment Terms
Release and Waiver
Confidentiality
Non-Disparagement
Return of Property
Tax Compliance
Final Benefits
Legal Claims
Non-Competition
Non-Solicitation
Intellectual Property
References
Governing Law
Amendment
Severability
Entire Agreement
Acceptance
Witness
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Professional Services
Telecommunications
Hospitality
Energy
Transportation
Agriculture
Mining
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Payroll
Compliance
Employee Relations
Executive Leadership
Administration
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Company Secretary
Finance Manager
Payroll Manager
Compliance Officer
Employee Relations Manager
HR Business Partner
Chief Human Resources Officer
Head of Legal
Chief Financial Officer
Managing Director
Chief Executive Officer
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