Document background
The Mutual Agreement Termination of Employment Letter is utilized in situations where both the employer and employee in Malaysia mutually consent to end their employment relationship. This document is essential when parties wish to formally document their agreement to terminate employment on mutually acceptable terms, rather than through unilateral termination or resignation. It ensures compliance with Malaysian employment laws, particularly the Employment Act 1955 and related regulations, while protecting both parties' interests. The letter typically includes critical information such as the effective termination date, final settlement details, outstanding benefits, confidentiality obligations, and any post-employment arrangements. This approach often helps maintain positive relationships and can reduce the risk of future disputes by clearly documenting the agreed terms of separation.
