Disengagement Letter Template for Malaysia

The Disengagement Letter is a crucial document in Malaysian professional practice used when formally concluding a professional service relationship. It serves multiple purposes: documenting the formal end of services, protecting both parties' interests, ensuring clear communication about outstanding matters, and maintaining professional standards. The document must comply with Malaysian legislation, including the Contracts Act 1950 and relevant professional regulations. It typically includes essential information about termination dates, outstanding fees, document handling, and transition arrangements. This type of letter is particularly important in regulated professions where formal documentation of relationship termination is required for compliance and risk management purposes.

1. Date and Address Block: Current date and client's complete address details

2. Reference Line: Reference to relevant engagement agreement or matter

3. Salutation: Professional greeting to the appropriate contact person

4. Confirmation of Termination: Clear statement confirming the termination of professional services

5. Effective Date: Specific date when the disengagement takes effect

6. Reason for Disengagement: Brief, professional explanation for the termination if appropriate

7. Status of Current Work: Summary of completed work and status of any ongoing matters

8. Outstanding Fees: Statement of any remaining fees or expenses to be settled

9. Return of Documents/Property: Process and timeline for returning client documents or property

10. Records Retention: Information about how long documents will be retained and when they will be destroyed

11. Next Steps: Clear instructions on what the client needs to do next, including finding new representation

12. Closing Statement: Professional conclusion and acknowledgment of the professional relationship

13. Signature Block: Professional signature block with contact information