The Permanent Layoff Letter is a crucial document used in Malaysia when an employer needs to terminate employment relationships due to business restructuring, economic conditions, or organizational changes. It must comply with the Employment Act 1955, Industrial Relations Act 1967, and Employment Insurance System Act 2017. The document serves multiple purposes: it officially communicates the layoff decision, specifies the effective date, details termination benefits and final payments, and outlines both parties' rights and obligations. This letter is essential for legal compliance and proper documentation of the termination process, protecting both employer and employee interests while ensuring all statutory requirements are met under Malaysian employment law.
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1. Company Letterhead and Date: Official company letterhead with complete contact information and date of the letter
2. Employee Information: Full name, employee ID, position, and department of the affected employee
3. Subject Line: Clear indication that this is a notice of permanent layoff
4. Notice of Termination: Clear statement of employment termination due to layoff and the effective date
5. Reason for Layoff: Brief explanation of the business circumstances necessitating the layoff
6. Notice Period Details: Information about the notice period or payment in lieu of notice
7. Termination Benefits: Details of statutory termination benefits, calculation method, and payment timing
8. Return of Company Property: List of company properties to be returned and the process for doing so
9. Final Payment Details: Information about final salary, unused leave, and other entitlements
10. Acknowledgment Section: Space for employee signature acknowledging receipt of the letter
1. Continuation of Medical Benefits: Include when the company offers extended medical coverage post-termination
2. Outplacement Support: Include when the company provides job search assistance or career transition services
3. Non-Compete/Confidentiality Reminder: Include when employee is bound by existing confidentiality or non-compete agreements
4. Reference Letter Offer: Include when the company is willing to provide employment references
5. Rehire Possibility: Include when there's a possibility of future re-employment or recall
6. Severance Package: Include when offering additional compensation beyond statutory requirements
1. Schedule A: Termination Benefit Calculation: Detailed calculation of termination and layoff benefits as per Malaysian regulations
2. Schedule B: Final Payment Breakdown: Itemized list of all final payments including salary, benefits, and deductions
3. Schedule C: Company Property Checklist: Detailed list of company assets to be returned with their conditions
4. Appendix 1: Employee Support Resources: List of relevant contact information for HR, EIS claims, and other support services
5. Appendix 2: Employment Insurance System Information: Information about EIS benefits and application procedures
Relevant legal definitions
Clauses
Notice Period
Termination Benefits
Final Payment
Company Property Return
Confidentiality
Non-Disclosure
Non-Solicitation
Benefits Cessation
Employment Insurance System
Leave Settlement
Final Clearance
Reference Provision
Tax Compliance
Dispute Resolution
Acknowledgment
Legal Rights
Data Protection
Outstanding Obligations
Contact Information
Severance Calculation
Termination Benefits
Final Payment
Company Property Return
Confidentiality
Non-Disclosure
Non-Solicitation
Benefits Cessation
Employment Insurance System
Leave Settlement
Final Clearance
Reference Provision
Tax Compliance
Dispute Resolution
Acknowledgment
Legal Rights
Data Protection
Outstanding Obligations
Contact Information
Severance Calculation
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Construction
Education
Telecommunications
Hospitality
Mining
Oil and Gas
Professional Services
Transportation
Logistics
Real Estate
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Compliance
Employee Relations
Payroll
Industrial Relations
Relevant Roles
Chief Executive Officer
Human Resources Manager
Legal Counsel
Department Manager
Finance Director
Operations Manager
Administrative Officer
Project Manager
Production Supervisor
Sales Executive
Technical Specialist
Customer Service Representative
Research Analyst
Marketing Coordinator
Software Developer
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