Sample of Termination Letter

In Malaysia, the Labour Interactions Act (IRA) 1967 and the Employment Act 1955 control employer-employee relations.

Many consider the Malaysian method for terminating an employee to be excessively pro-employee. Even some overseas enterprises fear a system viewed as detrimental to employers regarding employment termination. Many employers believe that terminating employees is too difficult.

Taking into account Malaysian labour law, the system is well-balanced. The Industrial Court has been instrumental in clarifying where statutes are ambiguous, ensuring that Malaysian labour law is current with the corporate climate.

Read here to understand more about termination of employment.

Here is a sample of the termination letter by HR Forum Malaysia.

PRIVATE & CONFIDENTIAL 

Date

Employee Name

Staff No.

Dear Employee

Re: Performance Improvement Plan (PIP) 

We refer to the above and the outcome of the Performance Improvement Plan.

Despite numerous reminders and efforts by the Company to assist you in improving your performance, your work performance still needs to improve. Your performance has been documented and well explained to you. Additionally, the performance improvement plan (PIP) you were participating in put forth specific goals and targets you agreed to meet by the due date. We have assisted and supported you in reaching your performance targets. Unfortunately, you still need to improve your performance to a consistent acceptable standard as required. 

The Company hereby dismiss you from employment with immediate effect. You shall be paid up to and until 28 July 2020 and shall be credited into your bank account less statutory deductions. You are hereby required to clear all administrative processes. 

We thank you for your past services to the Company. We would also like to wish you all the very best in your future undertakings. 

Sincerely, 

Name

Title

Read here to know the guidelines to prevent employees from suing during termination.

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