This template document is provided free of charge and is intended for guidance purposes only.

We recommend you obtain the help of a qualified

lawyer to complete it. Use of this document is subject to the terms of use set out at www.lpplaw.my and it does not constitute a lawyer-client
relationship between any user of this document and our law firm.

© Lee & Poh Partnership 2021

PRIVATE & CONFIDENTIAL

Date:

Individual’s Name and NRIC No.

Individual’s Address

Dear [ ],

MUTUAL SEPARATION AGREEMENT (“AGREEMENT”)

We thank you for coming for the meeting on [insert date] to discuss the above matter. Following the
discussion between [•], Human Resources Manager and yourself, we would like to confirm our
agreement at the meeting whereby it was agreed that your services as [insert position] be mutually
terminated from [insert name of company] (“the Company”) by way of separation on the following
terms:

1. That your last date of employment with the Company will be on [•] (“Termination Date”).

2. On Termination Date, the Company will pay you the following, less lawful deductions and any
deductions due to the Company:

2.1 your final salary for the month of [•] amounting to RM [•] (Basic Salary + Travel Allowance);

2.2 salary in lieu of unutilised annual leave of [•] days amounting to RM [•]; and/or

2.3 a sum of three months basic salary amounting to RM [•] as compensation for your loss of
employment and earnings. This compensation has been agreed upon by you.

[User note: You are free to structure the content as you like, depending on the mutual
separation scheme as agreed between the Company and the employee. Having said that,
a compensation paid will usually sweeten the separation].

3. That in consideration of the matters set out in paragraphs 2 herein, you hereby agree:

3.1 to release the Company, their subsidiaries, parent and associated companies and firms, and
their current and former officers, directors, agents, and employees and assigns (collectively
defined for the purpose of this document as “the Released Parties”) from any and all
claims, actions, proceedings, demands whatsoever, that you may now or hereafter have
against the Released Parties in connection with your employment with the Company or
termination thereof;

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This template document is provided free of charge and is intended for guidance purposes only. We recommend you obtain the help of a qualified
lawyer to complete it. Use of this document is subject to the terms of use set out at www.lpplaw.my and it does not constitute a lawyer-client
relationship between any user of this document and our law firm.

© Lee & Poh Partnership 2021

3.2 not to bring or institute any claim or complaint in any court of law or tribunal against the
Released Parties in respect of your employment with the Company. This expressly includes
waiver and release of any rights and claims arising under any and all laws, rules, regulations,
or ordinances;

3.3 undertake to fully indemnify and hold the Released Parties harmless from any loss,
expense, damage or liability in connection with any such claim, right, demand and/or cause
of action made by yourself or your agents under any and all laws including the Industrial
Relations Act 1967 or in relation to your breach of any terms and conditions of this
Agreement;

3.4 to leave from any messaging groups pertaining to your employment with the Company and
not to use any personal data and contact details of the Company’s customers, employees
and agents for any commercial purpose (except where the customers, employees or agents
contact you directly for personal and private matters);

3.5 to abide by the continuing obligations under the terms of your employment with the
Company, such as your obligations concerning confidentiality, invention, intellectual
property as well as non-solicitation and non-competition;

3.6 to keep the discussion, settlement and the content of this Agreement private and
confidential and not to spread untrue and false statements to anyone that may damage the
reputation and goodwill of the Company and/or its directors; and

3.7 to return all Company property in your possession or custody including but not limited to all
information available on ongoing tasks and projects that is documented in any form
whatsoever, the laptop together with the password and all files stored therein, ID tag, office
keys and company hand phone, uniform stationery and other items, if any, to the Human
Resource Department before your departure.

4. You acknowledge that breach of paragraphs 3.5, 3.6 and 3.7 above will cause the Company
irreparable damage for which recovery of damages would be inadequate, and that the Company
shall therefore be entitled to obtain timely injunctive relief under this Agreement, as well as
such further relief as may be granted by a court of competent jurisdiction.

5. If any provisions of this Agreement is held invalid, unenforceable or illegal for any reason,
this Agreement shall remain in full force apart from such provision which shall be deemed as
deleted. You agree that provision or provisions of this Agreement held to be unreasonable and
unenforceable will be reformed without further action by either party and only to the extent
necessary to make such provision or provisions valid, reasonable and enforceable.

6. This Agreement, may be accepted, executed or agreed to, through the use of an electronic
signature, whether digital or encrypted, in accordance with the Electronic Commerce Act 2006.
Any document accepted, executed or agreed to in conformity with such law will be binding on

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This template document is provided free of charge and is intended for guidance purposes only. We recommend you obtain the help of a qualified
lawyer to complete it. Use of this document is subject to the terms of use set out at www.lpplaw.my and it does not constitute a lawyer-client
relationship between any user of this document and our law firm.

© Lee & Poh Partnership 2021

each party and shall have the same legal effect, validity or enforceability as if it were physically
executed.

7. This Agreement shall be governed by, and construed in accordance with, the laws of Malaysia.

8. The discussion, settlement and this mutual separation scheme shall be treated as confidential.
Neither party shall disclose the matters related to the separation or the contents of this scheme
letter to any third party.

Kindly signify your acceptance of the above terms and conditions by signing on the duplicate copy of this
letter below.

We would like to take this opportunity to thank you for all your services rendered in the past and wish
you the very best in your future career.

Yours sincerely,
For [ ] Sdn. Bhd.

NAME
Human Resource Manager

cc. Personnel file

CONFIRMATION OF ACCEPTANCE

I, name of employee（NRIC No.: ）, after careful consideration and having sought

independent legal advice, confirm my agreement to the above and hereby declare that I shall make no
further claims whatsoever against the Company upon receipt of the agreed severance pay mentioned
above.

Signed by:

………………………………..
Name:
Position:

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This template document is provided free of charge and is intended for guidance purposes only. We recommend you obtain the help of a qualified
lawyer to complete it. Use of this document is subject to the terms of use set out at www.lpplaw.my and it does not constitute a lawyer-client
relationship between any user of this document and our law firm.

© Lee & Poh Partnership 2021

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