An End Contract Letter To Employee is a crucial document in Malaysian employment relations, used to formally communicate the termination of employment. This document is essential when ending employment relationships through various scenarios including resignation, retirement, redundancy, or performance-based termination. It must strictly comply with Malaysian employment legislation, particularly the Employment Act 1955 and the Employment (Termination and Lay-Off Benefits) Regulations 1980. The letter serves multiple purposes: it officially documents the termination date, outlines the notice period, details final settlements, specifies the return of company property, and may include additional elements such as non-compete reminders or reference provisions. The document's format and content must align with Malaysian legal requirements while maintaining professional communication standards.
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1. Letter Header: Company letterhead, date, reference number, and addressee details
2. Subject Line: Clear indication that this is a contract termination notice
3. Employee Information: Employee name, ID, position, and department
4. Termination Notice: Clear statement of contract termination and effective date
5. Notice Period: Specification of notice period as per employment contract and legal requirements
6. Final Settlement: Information about final salary, benefits, and payment timing
7. Company Property: Instructions regarding return of company property
8. Closing: Professional closing with acknowledgment section and authorized signatory
1. Performance Summary: Include when termination is performance-related, summarizing key issues
2. Retirement Benefits: Include for retirement-based termination, detailing retirement benefits
3. Redundancy Package: Include in cases of redundancy, detailing compensation package
4. Non-Compete Reminder: Include when employee is bound by non-compete agreements
5. Reference Offer: Include when company is willing to provide employment references
6. Handover Requirements: Include when specific handover procedures are necessary
1. Final Settlement Calculation: Detailed breakdown of final payment including salary, leave encashment, and other benefits
2. Company Property Checklist: List of company properties to be returned with acknowledgment form
3. Handover Document: Detailed list of pending tasks, projects, and handover requirements
4. Exit Clearance Form: Checklist for various department clearances before final settlement
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