The Reason For Termination Letter is a crucial document in Malaysian employment relationships that formally communicates the end of employment. It is used when an employer needs to terminate an employee's contract for various reasons such as poor performance, misconduct, redundancy, or operational requirements. The document must strictly comply with Malaysian employment law, particularly the Employment Act 1955 and Industrial Relations Act 1967, which set out specific requirements for termination procedures. The letter serves multiple purposes: it provides clear documentation of the termination decision, states the legal grounds for termination, outlines final entitlements, and helps protect the employer from potential unfair dismissal claims. It should be drafted carefully to ensure it includes all necessary information while maintaining professionalism and clarity.
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1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting
2. Recipient Details: Employee's full name, position, employee ID, and complete address
3. Subject Line: Clear indication that this is a termination letter
4. Opening Statement: Formal notification of employment termination, referencing any prior discussions or warnings
5. Reason for Termination: Clear, specific, and factual explanation of the grounds for termination
6. Effective Date: Explicit statement of the last day of employment
7. Final Entitlements: Details of final salary, unused leave, and other statutory benefits
8. Company Property: List of items to be returned and process for return
9. Closing Statement: Professional conclusion with any necessary acknowledgment requirements
10. Signature Block: Authorized signatory details and space for signature
1. Notice Period Details: Include when payment in lieu of notice is being made or if there's a garden leave period
2. Non-Compete Reminder: Include when the employee is bound by post-employment restrictions
3. Handover Instructions: Include when the employee needs to transfer responsibilities or documents
4. Reference Provision: Include when specifying the company's policy on providing references
5. Settlement Agreement Reference: Include when termination is part of a mutual separation agreement
6. Medical Benefits Extension: Include when there are continuing medical benefits post-termination
7. Grievance Procedure: Include when company policy or law requires mention of appeal processes
1. Final Payment Calculation: Detailed breakdown of final salary, benefits, and statutory payments
2. Company Property Checklist: Itemized list of company assets to be returned
3. Exit Checklist: Procedural checklist for clearing desk, returning passes, etc.
4. Handover Document Template: Standard template for documenting handover of responsibilities
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