Document background
The Severance Payment Agreement is a crucial document used in Malaysia when formalizing the termination of employment relationships through mutual agreement or as part of a broader separation arrangement. It is primarily used during voluntary separation schemes, restructuring exercises, or individual employment terminations where both parties agree to specific separation terms. The document must comply with Malaysian employment laws, particularly the Employment Act 1955 and Industrial Relations Act 1967, while addressing key aspects such as payment calculations, tax considerations, and post-employment obligations. This agreement helps prevent future disputes by clearly documenting all separation terms and ensuring both parties understand their rights and obligations.
