Document background
The Clearance Letter For Employee is a crucial document in Malaysian employment practice that serves as the final step in the employment separation process. It is typically issued after an employee's resignation, termination, or retirement has been processed and all company clearance procedures have been completed. The document confirms that the employee has returned all company assets, settled any outstanding financial matters, completed necessary handovers, and fulfilled all exit requirements. This letter is essential for maintaining clear records and protecting both parties' interests under Malaysian employment law, particularly in compliance with the Employment Act 1955 and related regulations. It can also serve as a reference document for future employment and helps prevent potential disputes regarding the settlement of employment-related matters.
