One-Stop HR Information Centre

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• If you leave the Company’s service due to resignation or dismissal / termination or the loan is being recalled / withdrawn, you shall repay the Company immediately on outstanding loan sum.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>

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

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>