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It is not a common practice of most companies to grant their employees personal loan, take into consideration of the risk that may be faced by the Company when the employees fail to make repayment, or absconded, and the tedious procedures and cost that may incur in order to recover the default of such loan. However, if any personal loan is granted to an employee, it is advised that the repayment shall be deducted from the employee’s monthly salary, in order to minimise such defaults. For this purpose, an agreement shall be obtained from the employee before the loan amount is disbursed, which the sample of such agreement is as follow:

<Ref. No.>

<Date>

<Name>

<Designation / Department>

Dear <Name>,

Personal Loan

Please be informed that your application for a personal loan of <amount> from the Company as been approved.

Please note that the loan is granted on your agreement on your agreement to the following terms and conditions:

• That you shall repay the total loan disbursed through deductions from your monthly salary at <amount> per month commencing from <month, year> salary. In this regard, you are to authorise the Company to make monthly deduction of <amount> per month over <number of> instalments until full repayment of the loan sum of <amount>.
• If you leave the Company’s service due to resignation or dismissal / termination or the loan is being recalled / withdrawn, you shall repay the Company immediately on outstanding loan sum. For this purpose, the Company is entitled to set off from the outstanding balance loan sum against whatsoever monies due and payable by the Company to you.
• It is also agreed that should the Company be forced to seek legal advice / commence legal proceedings to enforce its rights under this agreement, the Company shall also be entitled to claim its solicitor-client fees in addition to the sums due and owing to it from you.

If you agree to the above, please acknowledge receipt of cheque for <amount> and to authorise the Company to deduct <amount> per month from your monthly salary commencing <month, year> until the total loan sum is repaid.

Yours faithfully,

<Company Signatory>

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Acknowledgement

I fully understand the terms and conditions and hereby acknowledge receipt of the cheque for the sum of <amount>. I also authorise the Company to make monthly deductions from my salary towards repayment of the loan as per Appendix 1 (Repayment Schedule shall be attached) enclosed.

<Employee Signatory>

<Date>

If the Board of Inquiry found an employee guilty after a domestic inquiry, and the Management has decided to dismiss the employee’s service, the following sample of dismissal letter is to serve to the employee:

<Ref.>

<Date>

<Name>

<Designation / Department>

Dear <Name>,

Dismissal

We refer to the Domestic Inquiry held on <date> on the specific allegation(s) levelled against you as stated in our letter of charge to you dated <date>.

We have carefully gone through the records of the inquiry, the related documents and finding of the Board of Inquiry, and concur with its findings that on the evidence recorded at the inquiry the charges levelled against you have been sufficiently proved (if not all the charges proved, state those which are proved).

As the charges levelled against you and proved against you at the inquiry being grave and serious, the appropriate punishment is dismissal. We have looked into your past record of service with the Company with a view to finding any extenuating circumstances, however, we regret that there are none.

In this circumstances, it has been decided to dismiss you from service. Accordingly, you are hereby dismissed from your service with the Company with effect from the date of this letter. You are required to return all company property under your possession to the Company, otherwise, appropriate reimbursement will have to be made by you to meet the cost of company property that are not returned by you.

After you have returned all company property under your possession, you may collect all monies due to you at Human Resource Department during normal office hours.

Thank you.

Yours sincerely,

<Signatory>

After due inquiry, if the Board of Inquiry found the employee guilty, an employer may dismiss the employee without notice, downgrade the employee, or impose any other lesser punishment as deemed just and fit, which include a punishment of suspension without wages, and there is such suspension, it shall not exceed a period of two weeks. A sample of suspension letter after due inquiry is as follow:

<Ref. No.>

<Name>

<Designation, Department>

Dear <Name>,

Suspension

We refer to the Board of Domestic Inquiry head on <date> on the specific allegation(s) of misconduct levelled against you as stated in our letter of charge dated <date>.

We have carefully gobe through the records of the inquiry, the relevant documents and findings of the Board of Inquiry, and concur with its findings that on the evidence adduced at the inquiry the charges levelled against you have been successfully proved (state those which are proved, if not all charges are proved). The charges levelled against you and proved against you at the inquiry being grave and serious, which the appropriate punishment would be dismissal.

Under the circumstances, we would have been justified in dismissing you from service. However, in consideration of the fact (that you have pleaded for leniency / any other extenuating circumstances), it has been decided not to dismiss you. Alternatively, we have decided to suspend you from duty without payment of wages for <number of> days with effect from <duration> in accordance to Section 14(1) of the Employment Act 1955. You will therefore report for your normal duty on <date>.

We hope you will reciprocate our goodwill by better conduct on your part in the future.

We wish to caution you that any further act of misconduct committed by you will in future merit serious disciplinary action from the Company including the punishment of dismissal, if so warranted by the facts and circumstances of the case.

Thank you.

Yours faithfully,

<Signatory>

If an employee is alleged to have committed a misconduct, he / she may be suspended from duty pending investigation. The following is a sample letter of an employee to be suspended from duty as a result of suspected false Medical Certificate.

<Ref. No.>

<Date>

<Name>

<Designation / Department>

Dear <Name>

Suspension

It has been reported by your immediate superior to us that you were on long medical leaves from <duration>. However, your medical certificates only reached us on <date>. Due to certain irregularities suspected in the medical certificates submitted, the Company is currently investigating the said irregularities.

You are hereby suspended from duty for <number of> days, beginning <duration>, pending further investigation by the Company. You are required to report back for duty to the <immediate superior> on <date> at <time> (must be specified).

During the period of suspension, you are not allowed to enter the Company’s premises without the prior written approval of the Human Resource Department. You are also required to be available at your home address during reasonable hours to enable the Management to communicate with you, if necessary.

Please acknowledge receipt of this letter by signing and returning the attached duplicate copy to us.

Thank you.

Yours faithfully

<Signatory>

************************************************************

Acknowledgement

I hereby understand and acknowledge receipt of the letter.

Name:

NRIC No.:

<Signatory>

Date

Upon completion of probationary period / extended probation period, if an employee is not performed up to the Management’s expectation on the position offered, even though sufficient guidance have been given (must be supported by proper documentation), instead of termination, the Management may offer the employee another suitable position, perhaps a lower position (if there is any). The below is an example of non-confirmation and downgrading letter given to an employee who is under performed in his position:

<Ref. No.>

<Date>

<Name>

<Designation / Department>

Dear <Name>,

Confirmation Status

We are evaluating your initial performance for the recent <number of> months since your commencement date on <date>, which the first evaluation has been done in <date>. In the first evaluation, your probation period has been extended and your weakness as a <position> has been highlighted to you in our letter dated <date> (our ref.). You were required to improve your areas of weakness including but not limited to, understanding of your role and job responsibilities as a <position>, as well as your <spell out other related knowledge or skills>.

You were also given a guidance report whereby guidance was given on your every single job responsibilities as a <position>. You were given another <number of> months to show improvement and competency as a <position>.

However, the Management notices that during this guidance period <duration>, you have not demonstrated satisfactory on "average" as a <position>, especially in the areas which were highlighted earlier (as enclosed guidance reports accessed by your immediate superior), as follow:

<spell out the incompetencies in point form>

The above weaknesses show your incompetence as a <position>, generally can be concluded as "poor" performance as a <position>. You are therefore not confirmed in your position as a <position>. According to Clause <clause> of the Staff Handbook, if an employee is not confirmed after his / her extended probationary period, his / her service with the Company shall be deemed terminated.

However, despite the above, in view of the technical skills that you possess, as well as your good working attitude, after due consideration, the Management propose to re-designate you as <new position> instead effective <date>, with no change in your remuneration package, simply take into consideration the economic and inflation factors (or with change, depends on Company>.

However, in order to be in line with the Company’s job grading system, your job grade has correspondently downgraded from <old grade> to <new grade>.

Please find your new job responsibilities in the attached appendix.

The Management hopes that you would take this opportunity to improve your areas of weaknesses and equip yourself with necessary skills for your future career advancement.

Thank you.

Yours sincerely,

<Signatory>

**************************************************

Acceptance

I <name> (NRIC No.) do hereby acknowledge and accept the contents of this letter.

<Signatory>

<Date>

It is the policy of some companies to bond its employee, who is sponsored by the Company to attend a training program, for a certain period of time. The purpose of the bonding period is to allow the employee to apply the skills or knowledge that he / she gains from such training program to his / her job, at the same time to transfer them to his / her peers.

In the above-mentioned case, usually a training agreement will be signed between the Company and the employee. A sample of training agreement is as follow:

***********************************************************

An Agreement is made the <date> day of <year>

Between

<Company Name>, a company registered in <Country> under Company number <company number> and having its registered office at <address> (hereinafter referred to as "the Company") of the one part

And

<Employee Name>, NRIC: <NRIC number> who residence is at <Home Address> (hereinafter referred to as "the Employee") of the other part.

SUPPLEMENTAL to the Employee’s letter of employment with the Company dated <date> *and/or any subsequent contract of employment with its holding company, any subsidiary company, associate company and/or subsidiary of subsidiary company within the <Company Name> Group of Companies (hereinafter referred to as "the Group of Companies") to which the Employee may be transferred or seconded (hereinafter collectively referred to as "the Contract of Employment") and shall be read together with this Agreement. (*delete if not applicable).

NOW IT IS HEREBY AGREED as followed: -

• THE PROGRAM

• The Company has offered and the Employee has accepted a scheme under which the Employee will be provided a sponsorship to attend the <program name> (hereinafter referred to as "the Program" to be held at <address> (hereinafter referred to as "the Institute") for a duration of <number of> days commencing from <duration>.
• The employee shall be granted leave of absence from the Company to attend the Program from <duration> (hereinafter referred to as "the Sponsorship Period") for the sole purpose of attending the Program.
• The Employee shall report for duty with the Company immediately upon completion of the Sponsorship Period unless prior written approval for a further leave of absence is obtained from the Company.
• The Employee’s attendance of the Program shall not constitute a bread of his employment with the Company.

• The Employee shall as part of his duties under the Contract of Employment attend the Program diligently and apply the whole of his energies during the Program to the acquisition of the skills and knowledge taught or otherwise made available in connection with the Program.
• The Employee shall during the Sponsorship Period follow all regulations and discipline that shall be enforced from time to the by the Institute or any other authority under the authorisation of the Institute.
• The Employee shall follows all regulations that shall imposed by the Company from time to time.
• The Employee shall not be involved with any activities that in the opinion of the Company shall jeopardize or bring disrepute to the reputation of the Company.

• In consideration of the sponsorship granted, the Employee shall serve the Company or the Group of Companies at any particular time as determined by the Company whether on a secondment basis or otherwise for a period of <duration, in months> (hereinafter referred to as "the Compulsory Service Period") commencing the date he reports for duty with the Company or the Group of Companies, as the case may be upon completion of the Sponsorship Period upon the terms and conditions and at the salary in accordance with the Contract of Employment whereupon the Compulsory Service Period shall take precedence to the resignation period set forth in the Contract of Employment.
• In the event where a preceding Compulsory Service Period exists, then this Compulsory Service Period shall commence and continue from the expiry of the other existing Compulsory Service Period and also shall take precedence to the resignation period set forth in the Contract of Employment.
• The Company reserves the right to extend (whenever applicable or necessary as the case maybe), reduce or waive the Compulsory Service Period at its sole discretion and only in the event of reduction or waiver of the said Compulsory Service Period, the Employee shall be absolved of all obligations under this Agreement and shall not be entitled to any compensation of whatsoever nature from the Company.

• In the event during the Sponsorship Period:

• The Employee fails to perform satisfactorily or guilty of neglect or indifference in studying the Program; or
• The employee resigns from the Company and/or abandons the Program before completion thereof without written consent of the Company; or
• The employee is suspended or barred by the Institute from continuing with the Program for whatever reasons; or
• Fails or refuses to report for duty / resigns from the Company upon completing the Training Period; or
• By his own conduct renders himself incapable or is unsuitable in the opinion of the Company to serve the Company; or
• The Employee breaches any terms and conditions set out in this Agreement and/or the Contract of Employment; or
• The Employee’s employment under the Contract of Employment is terminated by the Company for misconduct or any other reasons whatsoever during the Sponsorship Period or the Compulsory Service Period; or
• The Employee is retrenched or medically boarded out by the Company during the Compulsory Service Period; or
• The Employee resigns or abandons the service of the Company during the Compulsory Service Period.

• MISCELLANOUS

• Save and except where it is varied by this Agreement, all other terms of the Contract of Employment shall remain unchanged.
• No amendments in respect of this Agreement shall be made unless agreed to and acknowledged in writing by both parties.
• This Agreement shall be binding upon the parties, their respective heirs and their assigns.
• The Company reserves the right to assign the whole or in part any part of this Agreement whereby the said assignment shall be binding on the heirs personal representatives successors-in-title and permitted assigns of the parties thereto.
• The Employee hereby gives his irrevocable consent to the Company to inform any of his prospective employers of his obligations under this Agreement.
• The Employee shall indemnify the Company against all damage and loss (including the Company’s Solicitor-Client fees) howsoever incurred or sustained by the Company as a consequence of a breach or non-observance of the convenants herein contained by the Employee.
• Throughout this Agreement, words importing the masculine gender shall be deemed and taken to include the feminine and neuter genders and the singular to include the plural and vise versa.
• Time, whenever mentioned in this Agreement, shall be of the essence.
• Any notice required to be served under this Agreement by either party concerned or sent by prepaid ordinary or registered post to the other party at the address of such other party hereinbefore given.
• If anyone more of the provisions contained in this Agreement or any document executed in connection herewith shall be invalid, illegal or unenforceable in any respect under the applicable laws, it is agreed and understood that the validity and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired.
• Any delay, forbearance or neglect on the part of the Company to enforce at time all or any of the provisions of this Agreement and any rights in respect thereto or to exercise any election therein provided shall not construed as a waiver of such provisions rights or elections and shall not preclude the Company in exercising the same or any other right under this Agreement.
• This Agreement shall be governed by and construed in accordance with the Laws of <Country>.

THE TERMS AND CONDITIONS OF THIS AGREEMENT HAVE BEEN UNDERSTOOD AND AGREED UPON BY BOTH PARTIES WHO HAVE SET THEIR HANDS ON THE DAY AND YEAR ABOVE WRITTED.

For and behalf of

<Company Name>

<Name>

<Designation>

In the presence of

<Name>

<Designation>

Signed and accepted by

THE EMPLOYEE

<Name>

<IC Number>

In the presence of

<Name>

<Designation>

Upon completion of domestic inquiry, a report shall be prepared and submitted to the person who will decide on the punishment. The report shall include the following points:

• Name of Chairman of Inquiry Panel
• Date, Time, Place of Inquiry
• Name of Employee
• Charge(s) (Where an employee is charged with more than one charge, each charge should be dealt separately.)
• The facts Admitted
• Concise summary of the Management’s case
• Concise summary of the Employee’s case
• Points for determination in the inquiry
• Recommendations / findings

Each of the above point must be discussed separately.

If an employee has been confirmed to have conduct a severe misconduct, and the Company has decided to proceed with domestic inquiry before any disciplinary action is taken, the following letter could be served to the employee as a notice of domestic inquiry:

<Ref. No.>

<Date>

<Name>

<Designation>

<Department>

Dear <Name>

Re: Notice of Inquiry

We refer to your explanation dated <date> in reply to our letter dated <date>, it has been found that your explanation is not satisfactory. It is therefore proposed to hold an Inquiry into the allegation(s) made against you.

You are hereby requested to be present personally at <place> at <time> on <date> to attend this inquiry.

At this inquiry, you shall be given the full opportunity to conduct your defense by examining your witness(es) and cross-examining the Company’s witness(es). You may also bring along with you documentary evidence that will help you with your defense (if applicable).  

If you fail to present yourself at this inquiry at the place, time and date indicated above, the inquiry shall be proceeded with ex-parte (or in your absence).

Since the allegation(s) / charge(s) levied against you is / are of a serious nature, you are hereby suspended on half / full pay for a period of <number of> days pending the inquiry.

Please acknowledge receipt on the duplicate copy of this letter and return to me.

Yours faithfully

<Signatory>

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ACKNOWLEDGEMENT

I hereby understand and acknowledge receipt of the letter.

<Signatory>

<Name>

<IC No.>

<Date>