Document background
The Notice of Retrenchment Letter is a crucial document in Malaysian employment practice, required when an organization needs to reduce its workforce due to economic conditions, restructuring, or other business reasons. This document must be prepared in strict compliance with Malaysian employment law, particularly the Employment Act 1955 and the Industrial Relations Act 1967. The letter serves multiple purposes: it formally communicates the termination decision, specifies the notice period and termination date, details the compensation package, and outlines the next steps for the affected employee. A properly drafted Notice of Retrenchment Letter helps protect both employer and employee interests, ensures legal compliance, and provides clear documentation of the retrenchment process. It should be issued with sufficient notice as required by law and should include all mandatory elements such as severance calculations and final payment details.
