A Work Separation Letter is a crucial document in Malaysian employment practice that formalizes the termination of an employment relationship. It is used when an employee's service is being terminated due to various reasons such as resignation, retirement, redundancy, or performance issues. The document must align with Malaysian employment legislation, particularly the Employment Act 1955, Industrial Relations Act 1967, and related regulations. The letter serves multiple purposes: it confirms the termination in writing, specifies the effective date, outlines final payments and benefits, reminds the employee of post-employment obligations, and provides instructions for the transition period. This documentation is essential for both legal compliance and maintaining clear records of the employment separation process.
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1. Letter Header: Company letterhead, date, and reference number
2. Employee Details: Full name, employee ID, position, and department of the employee
3. Separation Notice: Clear statement of employment termination and effective date
4. Reason for Separation: Brief explanation of separation reason (if applicable and appropriate)
5. Notice Period: Details of notice period or payment in lieu of notice
6. Final Payment Details: Overview of final salary, statutory benefits, and other entitlements
7. Company Property: Instructions regarding return of company property
8. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
9. Acknowledgment: Space for employee signature and date of acknowledgment
1. Garden Leave: Include when employee is required to serve notice period away from office
2. Non-Compete Reminder: Include if employee is bound by existing non-compete agreements
3. Retirement Benefits: Include for retirement-related separations
4. Continuation of Benefits: Include when certain benefits continue post-termination
5. Reference Letter Provision: Include when company agrees to provide reference letter
6. Outstanding Loans: Include when addressing settlement of company loans
7. Share Options/RSUs: Include when addressing outstanding equity compensation
8. Transition Plan: Include when handover of duties is required
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, notice pay, and statutory benefits
2. Schedule B - Outstanding Leave Balance: Calculation of accumulated leave and payment in lieu
3. Schedule C - Company Property Checklist: List of company items to be returned
4. Appendix 1 - Employee Benefits Summary: Summary of post-termination benefits and important dates
5. Appendix 2 - Exit Procedures: Checklist of exit procedures and requirements
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