Seeking Advice on Improving Termination Clauses in Our Company Confirmation Letter

Hi everyone,

I've included here an example of a confirmation letter that I have created for my company. I'm trying to change the confirmation letter to be a bit more detailed, especially in the termination clauses. It's still a work in progress. I will include in the CONFIDENTIALITY AND DISCIPLINE. Unofficial duties will not be allowed during office hours. All employees are bound to HSE policy and procedures and subject to undergo training whenever necessary by the company.

I wish to add more, but I'm still cracking my head on it. If you have some suggestions, do tell. Have a read through and tell me what you think about it. There has been a discussion on whether or not to include 'either party' in the termination clause. Anyway, just tell me what you think on what I can improve on.

As an HR professional, enhancing termination clauses in a confirmation letter is crucial. In Malaysia, labor laws govern employment terminations. Here are some practical suggestions for improving your termination clauses:

1. Include Specific Termination Reasons: Clearly outline reasons for termination such as misconduct, poor performance, or breach of company policies. This provides clarity to both parties.

2. Notice Period: Specify the notice period required for termination by either party. This ensures a fair transition period and adherence to legal requirements.

3. Severance Pay: Address the issue of severance pay or benefits upon termination. Detail how this will be calculated and disbursed based on the circumstances of termination.

4. Termination Procedures: Define the steps involved in the termination process, including exit interviews, return of company property, and final settlements.

5. Confidentiality Clause: Strengthen the confidentiality clause to protect sensitive company information even after termination.

6. Non-Compete Agreement: Consider including a non-compete clause to prevent employees from engaging in competitive activities post-employment.

7. Legal Compliance: Ensure that all termination clauses align with Malaysian labor laws to avoid legal complications in the future.

By incorporating these suggestions, your termination clauses will be more comprehensive and provide a clear framework for both the employer and employees in Kuantan, Malaysia.