7.3 (A) - Letter of Redundancy For Employees

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The document discusses different types of termination letters including redundancy, lay off and termination. It provides sample letters and outlines benefits to be paid like wages, leave, retrenchment benefits etc.

Redundancy, termination and lay off letters are mentioned. Redundancy letters provide notice period or release with wages until a certain date along with retrenchment benefits. Termination letters provide notice period.

Retrenchment benefits based on 10-20 days wages per year of service are mentioned. Payment for unutilized annual leave and an ex-gratia amount are also to be paid.

(Company

 Letterhead)  

Date:                                                    ATTACHMENT  7.3(A)  


 
Name  of  Employee  
Designation  
SAMPLE  
Department  
 
Dear  ______________________  
 
RE:  LETTER  OF  REDUNDANCY  (Employee  Covered  by  the  Employment  Act)  
 
The  current  economic  situation  and  the  volatile  nature  of  our  business  have  compelled  
the   management   to   review   its   organisational   structure   and   manpower   requirements.     It  
is  inevitable  that  the  company  has  to  reduce  operating  costs  and  enhance  efficiency  and  
productivity  if  it  is  to  remain  competitive.  
 
In  view  of  this,  the  management  has  reviewed  the  position  of  the  various  divisions  in  the  
company  including  your  division  and  has  decided  that  your  division  does  not  require  an  
employee  in  your  position.      
 
You   are,   therefore,   given   *4   /   6   /   8   weeks’   notice   of   retrenchment   expiring   on  
DD/MM/YYYY.     However,   the   management   realizes   that   you   may   need   time   to   make  
alternate   arrangements   for   your   future.     Therefore,   to   enable   you   to   make   necessary  
arrangements,  you  would  be  released  with  effect  from  DD/MM/YYYY.      
 
The  company  would  pay  you  wages  up  to  DD/MM/YYYY  in  fulfillment  of  its  obligations  
relating   to   indemnity   in   lieu   of   notice.     In   addition,   the   company   would   pay   you   a  
retrenchment  benefit  based  on  *10  /  15  /  20  days’  wages  for  each  year  of  service  and  
payment  for  all  unutilized  annual  leave.    Further,  the  company  would  also  pay  you  an  
ex-­‐gratia   payment   of   RM   ________   as   a   small   token   of   appreciation   of   your   past  
contributions  to  the  company.            
 
Details  of  the  payment  due  to  you  and  the  payment  itself  would  be  furnished  to  you  on  
the  last  day  of  your  employment.    
 
The  management  wishes  to  take  this  opportunity  to  record  its  sincere  appreciation  for  
all  your  past  contributions  to  the  company  and  wishes  you  all  the  best  for  the  future.  
 
 
Yours  faithfully,  
 
____________________________  
(Name  of  Signatory  and  Designation)  
*Delete  as  appropriate  
(Company  Letterhead)  
 
Date:                                                                              ATTACHMENT  7.3(B)  
 
Name  of  Employee  
Designation  
SAMPLE  
Department  
 
Dear  __________________  
 
RE:  REDUNDANCY  (Employee  Not  Covered  by  the  Employment  Act)  
 
The   current   economic   situation   and   the   volatile   nature   of   our   business   have   compelled   the  
management  to  review  its  organisational  structure  and  manpower  requirements.    It  is  inevitable  
that  the  company  has  to  reduce  operating  costs  and  enhance  efficiency  and  productivity  if  it  is  
to  remain  competitive.  
 
In   view   of   this,   the   management   has   reviewed   the   position   of   the   various   divisions   in   the  
company   including   your   division   and   has   decided   that   your   division   does   not   require   an  
employee  in  your  position.      
 
It  is  with  great  regret  that  we  have  to  inform  you  that  your  position  would  no  longer  be  required  
and   you   are   hereby   given   ________   months'   notice   of   termination   commencing  
_______________.      
 
However,  to  enable  you  to  utilise  your  leave  eligibility  and  to  make  alternate  arrangement  for  
the   future,   the   management   would   release   you   with   effect   from   _______________.   Your  
monthly   wages   would   be   credited   into   your   account   as   usual   until   the   last   day   of   your  
employment.      
 
The  management  wishes  to  place  on  record  its  appreciation  for  all  your  contributions  in  the  past  
and  wishes  you  all  the  best  for  the  future.  
 
 
Yours  faithfully,  
 
 
 
 
____________________________  
(Name  of  Signatory  and  Designation)  
 
 
  (Company  Letterhead)    
 

ATTACHMENT  7.3  (C)  


Date:    
Name  of  Employee  
         
SAMPLE  
Designation  
Department  
 
Dear  ________________________  
 
RE:  LETTER  OF  LAY  OFF  
 
We  refer  to  your  appointment  under  which  you  were  paid  wages  of  RM____  /  day.    
 
We  regret  to  inform  you  that  due  to  the  adverse  business  conditions,  we  would  not  be  able  to  
provide   you   with   the   minimum   requirement   of   12   days   work   in   every   continuous   period   of   4  
weeks.    
 
In   view   of   this,   you   will   be   ‘Laid   Off’   with   effect   from   ___________________   and   you   will   be  
paid  the  following  up  to  your  last  date  in  employment:  
 
a) Wages  in  Lieu  of  Notice         RM________________  
b) Termination  Benefits              
*(4  /  6  /  8  Weeks  Wages  /  Years  of  Service)     RM________________  
Total:               RM________________  
 
The  Management  wishes  you  all  the  best  in  your  future  undertakings.  
Yours  faithfully,  
 
____________________________  
(Name  of  Signatory  and  Designation)  
*Delete  as  appropriate  

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