Learn more about Employee Resignation Letter in Malaysia
If an employee wish to terminate their employment contract, they can do so by using an employee resignation letter which is a formal document used to inform their employer of their intention to leave the company. You can download Legal Documents easily in order to ensure a smooth and professional transition, by providing written documentation of the resignation, the date of leaving and the reason for leaving. Through this document, one will be able to provide a clear record of the notice given and help to avoid any misunderstandings or disputes regarding the terms of the employee’s departure, such as the return of company property, the completion of outstanding work, and the payment of final salary.
How should an employee resignation letter be formatted?
An employee resignation letter should be formatted as a formal business letter and should include the following elements:
➤ Date: The letter should include the date on which it is written.
➤ Addressee: The letter should be addressed to the employee's immediate supervisor or the human resources department.
➤ Salutation: The letter should begin with a polite salutation
➤ Body: The body of the letter should clearly state the employee's intention to resign, and should include the effective date of the resignation. It should also include the reason for leaving, if the employee wishes to disclose it.
➤ Closing: The letter should end with a polite closing, followed by the employee's signature and printed name.
➤ Additional information: The employee may also include additional information such as their contact information, willingness to assist during the transition period, and gratitude for the experience gained while working with the company.
ℹ️ Themis partner’s template is written by lawyers who follow local juridiction which ensures that your document will comply with local laws. It’s important to note that the employee should provide at least two weeks’ notice of their resignation, and in most cases, the notice period is provided in the employment contract. The employee should also keep a copy of the resignation letter for their own records.
How much notice should an employee give when resigning?
In Malaysia, the notice period required when an employee resigns is typically outlined in the Employment Contract. If it is not specified in the contract, the Employment Act 1955, Section 30(1) states that the notice period must be at least one week if the employee has been employed for less than two years, and two weeks if the employee has been employed formore than two years.
Therefore, the minimum notice period is one week, but it can be longer if specified in the contract. It’s important for the employee to provide the notice period in writing, and also to discuss the resignation with their employer and manager.
It’s also important to note that providing more notice than the minimum requirement can help to ensure a smoother transition for both the employee and the employer, and can also demonstrate the employee’s professional conduct and willingness to assist with the transition.
What are the legal considerations for employee resignation letters?
In Malaysia, there are several legal considerations that employers and employees should be aware of when it comes to employee resignation letters:
1. The notice period required when an employee resigns is typically outlined in the employment contract, but if not specified, the minimum notice period is one week, and two weeks if the employee has been employed for more than two years. It is important for employees to provide the notice period in writing and also to discuss the resignation with their employer and manager.
2. Compliance with contract terms: Employee resignation letters should comply with any terms outlined in the employment contract, such as the requirement to return company property or complete outstanding work before leaving the company.
3. Final payment and benefits: Employers are obliged to make the final payment and benefits to the employee upon the completion of notice period or termination of contract.
4. Fair dismissal: Employers should ensure that they do not discriminate against an employee on the grounds of race, gender, religion, age, or disability when handling their resignation.
5. Confidentiality: Employers should ensure that any information provided in an employee resignation letter is kept confidential and is not disclosed to unauthorised parties.
6. Keeping records: Employers should keep records of employee resignation letters, as well as any related documentation, such as the notice period and the final payment, for legal and audit purposes.
How can it be useful for the employer and employee?
An employee resignation letter can be useful in the future for both the employer and the employee in Malaysia in several ways.
For the employer, the resignation letter can serve as written documentation of the employee’s resignation and the terms of their departure, such as the date of resignation and the notice period provided. This can be useful for legal and audit purposes, as well as for tracking employee turnover and identifying any patterns or trends that may need to be addressed. Additionally, the resignation letter can help the employer to plan for the employee’s departure and to find a replacement if necessary.
For the employee, the resignation letter can serve as a record of the terms of their departure, such as the notice period provided, the final payment and benefits, and the return of company property. This can be useful in case of disputes or misunderstandings in the future, and can also serve as a reference for future job applications. Additionally, the resignation letter can help the employee to demonstrate their professional conduct and willingness to assist with the transition, which can be beneficial for their future career prospects.
How can an employee resignation letter help to ensure a smooth transition?
An employee resignation letter can help to facilitate a smooth transition by including the following:
➤ A clear and specific date of resignation: This can help the employer to plan for the employee's departure and to find a replacement if necessary.
➤ A willingness to assist during the transition period: This can demonstrate the employee's professional conduct and willingness to help the employer during the transition period.
➤Gratitude for the experience gained while working with the company: This can help to maintain a positive relationship between the employee and the employer, even after the employee has left the company.
➤ Contact information: This can help the employer to get in touch with the employee if needed, for example, for the return of company property or for the completion of outstanding work.
What are the common reasons for employees to resign?
In Malaysia, some of the common reasons for employees to resign include:
1. Career advancement: Employees may resign in order to take on a new job opportunity that offers better career advancement prospects.
2. Compensation and benefits: Employees may resign if they feel that they are not being paid or treated fairly, or if they have been offered better compensation and benefits elsewhere.
3. Work-life balance: Employees may resign if they feel that their job is affecting their personal or family life, and if they are not able to achieve a good balance between work and personal life.
4. Job dissatisfaction: Employees may resign if they are unhappy with their job, the company culture, or their colleagues.
5. Relocation: Employees may resign if they need to relocate for personal or family reasons.
6. Health reasons: Employees may resign due to health reasons, either their own or of a family member.
7. Retirement: Employees may resign due to retirement or nearing retirement age.
8. Better Job Opportunities: Employees may resign if they find a better job opportunity that aligns with their career goals and interests. Perhaps they have seen a better job offer and want to pursue with an employment application.
It’s worth noting that the reasons for employees to resign could vary based on the industry, company, and the individual employee, and it’s important for employers to understand the reasons behind an employee’s resignation in order to address any issues that may have led to the resignation and to improve employee retention in the future.
How can it protect an employee's rights and interests?
An employee resignation letter can protect an employee’s rights and interests during and after leaving a company by providing written documentation of the terms of the employee’s departure. This can include the date of resignation, the notice period provided, the final payment and benefits, and the return of company property. This documentation can serve as evidence in case of disputes or misunderstandings, and can also help to ensure that the employee’s rights and interests are protected.
Additionally, it can also protect an employee’s rights and interests by including a statement of willingness to assist with the transition period, which can demonstrate the employee’s professional conduct and willingness to help the employer during the transition period. This can help to maintain a positive relationship between the employee and the employer, even after the employee has left the company.
Lastly, an employee resignation letter can protect the employee’s rights and interests by including contact information, which can help the employer to get in touch with the employee if needed, for example, for the return of company property or for the completion of outstanding work.
How can an employer handle an employee's resignation?
In Malaysia, an employer can properly handle an employee’s resignation and use the letter for documentation purposes by following these steps:
➤ Acknowledge receipt of the resignation letter: The employer should acknowledge receipt of the resignation letter in writing, and confirm the effective date of the resignation, as well as any other terms outlined in the letter.
➤ Discuss the resignation with the employee: The employer should discuss the resignation with the employee, to ensure that any issues or concerns are addressed and to ensure a smooth transition.
➤ Review the employment contract and company policies: The employer should review the employee's employment contract and company policies to ensure that all terms and conditions are met, such as the notice period and the return of company property.
➤ Make final payment and benefits: The employer should make the final payment and benefits to the employee upon the completion of notice period or termination of contract.
➤ Keep records: The employer should keep records of the employee resignation letter, as well as any related documentation, such as the notice period and the final payment, for legal and audit purposes.
➤ Plan for the transition: The employer should plan for the employee's departure and to find a replacement if necessary.
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