Document background
The Severance and Release Agreement is a crucial legal document used in Malaysian employment relationships when an employment relationship is being terminated through mutual agreement or as part of a separation package. This document is typically employed during corporate restructuring, voluntary separation schemes, or individual employment terminations where both parties seek a clean break. The agreement must comply with Malaysian employment laws, including the Employment Act 1955 and Industrial Relations Act 1967, while providing clear terms for severance payments, benefits continuation, and release of claims. It serves to protect both employer and employee interests by clearly documenting the termination terms, preventing future disputes, and ensuring all statutory obligations are met. The document is particularly important in cases involving senior executives or when significant severance packages are involved.
