This Termination Due To Lack of Work document is essential for Malaysian employers implementing workforce reductions due to business downturn, restructuring, or economic conditions. It must comply with the Employment Act 1955, Industrial Relations Act 1967, and related Malaysian employment regulations. The document should be used when an employer needs to terminate employment relationships due to genuine business reasons such as reduced workload, economic downturn, or organizational restructuring. It includes crucial information about notice periods, statutory benefits, final payments, and post-employment obligations. The document serves both as a legal record and a communication tool, ensuring transparency and compliance while maintaining professional relationships during the termination process.
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1. Opening and Employee Details: Date, employee name, position, employee ID, and department
2. Notice of Termination: Clear statement of employment termination and effective date
3. Reason for Termination: Explanation of the business circumstances leading to lack of work and necessity for termination
4. Notice Period: Specification of notice period or payment in lieu of notice as per Employment Act requirements
5. Termination Benefits: Details of statutory termination benefits and calculation basis
6. Final Payment Details: Breakdown of final payment including salary, unused leave, and other entitlements
7. Company Property: Instructions regarding return of company property and timeline
8. Closing Statement: Expression of gratitude for service and good wishes for future endeavors
1. Outplacement Support: Details of any career transition assistance offered by the company
2. Medical Benefits Extension: Information about continuation or termination of medical benefits, if applicable
3. Reference Letter Offer: Offer to provide employment references and contact details for requests
4. Non-Compete Reminder: If applicable, reminder of existing non-compete obligations
5. Settlement Agreement: Optional mutual release of claims section, if offering additional benefits beyond statutory requirements
6. Rehiring Possibility: Statement about potential future re-employment if business conditions improve
1. Schedule A - Termination Benefits Calculation: Detailed calculation of termination benefits including years of service, salary rate, and multiplication factors
2. Schedule B - Final Payment Breakdown: Itemized list of all final payments including basic salary, prorated bonus, leave encashment, and statutory benefits
3. Schedule C - Outstanding Company Property List: Checklist of company property to be returned
4. Schedule D - Employee Benefits Summary: Summary of benefit termination dates and any conversion options
5. Appendix 1 - Employment Insurance System Information: Information about EIS benefits and application process as per Employment Insurance System Act 2017
6. Appendix 2 - Acknowledgment Form: Form for employee to acknowledge receipt and understanding of termination letter
Relevant legal definitions
Company
Employee
Effective Date
Notice Period
Basic Salary
Termination Benefits
Employment Contract
Final Settlement
Statutory Benefits
Company Property
Confidential Information
Severance Payment
Employment Act
Industrial Relations Act
Service Years
Working Day
Identity Card
Final Payment Date
Retrenchment Benefits
Exit Interview
Clearance Process
Leave Entitlement
Retirement Benefits
Medical Benefits
Employee
Effective Date
Notice Period
Basic Salary
Termination Benefits
Employment Contract
Final Settlement
Statutory Benefits
Company Property
Confidential Information
Severance Payment
Employment Act
Industrial Relations Act
Service Years
Working Day
Identity Card
Final Payment Date
Retrenchment Benefits
Exit Interview
Clearance Process
Leave Entitlement
Retirement Benefits
Medical Benefits
Clauses
Notice of Termination
Reason for Termination
Notice Period
Final Payment
Statutory Benefits
Return of Property
Confidentiality
Non-Disparagement
Reference Provision
Post-Employment Obligations
Medical Benefits
Outstanding Leave
Final Settlement
Tax Obligations
Employee Acknowledgment
Continuing Obligations
Release of Claims
Governing Law
Data Protection
Company Property Return
Non-Competition
Non-Solicitation
Severance Benefits
Benefits Continuation
Reason for Termination
Notice Period
Final Payment
Statutory Benefits
Return of Property
Confidentiality
Non-Disparagement
Reference Provision
Post-Employment Obligations
Medical Benefits
Outstanding Leave
Final Settlement
Tax Obligations
Employee Acknowledgment
Continuing Obligations
Release of Claims
Governing Law
Data Protection
Company Property Return
Non-Competition
Non-Solicitation
Severance Benefits
Benefits Continuation
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Construction
Hospitality
Professional Services
Telecommunications
Energy
Transportation
Education
Healthcare
Relevant Teams
Human Resources
Legal
Compliance
Finance
Operations
Senior Management
Employee Relations
Payroll
Administration
Relevant Roles
Human Resources Manager
Legal Counsel
HR Director
Chief Human Resources Officer
Employee Relations Manager
HR Business Partner
Compliance Officer
Department Manager
Operations Manager
General Manager
Chief Executive Officer
Chief Operating Officer
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