How you handle the last month of employment affects your legal risk, your reputation and your remaining team. A consistent checklist keeps things fair and avoids disputes.

1. Confirm how the employment is ending

Resignation: get the resignation in writing, with the last working day.
Termination with notice or pay in lieu: follow the contract and the process for the reason given.
Termination for misconduct: follow due process first. See our guide on handling misconduct.
End of probation or fixed term: follow what the contract says and confirm in writing.

2. Check the notice period

Start with the contract. Where the contract does not state a notice period, the Employment Act sets minimums that increase with length of service, commonly cited as four weeks for under two years, six weeks for two to five years and eight weeks beyond five years. Either side may agree to pay in lieu of notice if the contract allows it.

3. Prepare the final pay calculation

Typical components include:

Salary up to the last working day
Pay in lieu of notice, if applicable
Unused annual leave encashment, according to contract and policy
Outstanding commissions, claims and allowances
Any termination or retrenchment benefits that apply
Deductions that are lawful and documented, such as agreed advances

Show the calculation clearly on a final payslip, and make the statutory contributions for the final month. Pay on time and within the period required by law, which you should confirm for your situation.

4. Handover and company property

List laptops, cards, keys, accounts and documents to be returned. Plan the handover of work and revoke system access on the last day.

5. Documents

Prepare the confirmation or acceptance of resignation, the final payslip, and any employment letter you agree to give. Keep the full file, including any exit interview notes.

6. Exit conversation

An honest exit interview often reveals fixable issues such as workload, management or pay structure.

This article is general information, not legal advice. Check the latest official guidance (HRD Corp, Ministry of Human Resources, Labour Department) for your situation. For retrenchment or contested terminations, take advice before acting.

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Employee Resignation and Termination in Malaysia: Notice and Final Pay Checklist