Document background
The Employee Severance Agreement is a crucial document used in Malaysia when formally terminating an employment relationship through mutual agreement or as part of a structured separation process. It is designed to comply with Malaysian employment laws, including the Employment Act 1955, Industrial Relations Act 1967, and related legislation. This document is typically used during corporate restructuring, redundancy situations, mutual separation arrangements, or when negotiating an amicable exit for senior executives. The agreement comprehensively addresses severance payments, statutory benefits, confidentiality obligations, release of claims, and post-employment restrictions. It serves to protect both employer and employee interests while ensuring legal compliance and minimizing the risk of future disputes.
