Employment & industrial relations chambers — Kuala Lumpur +60 3-2202 4188 WhatsApp
FLS Faiza Loke & SivamAdvocates & Solicitors

Employee desk

Executive exits

Senior departures are negotiations, not fights. The objective is a signed set of terms that protects your money, your options and your next role — quietly, and usually within weeks.

What is actually on the table

An executive exit is rarely about the notice clause alone. The full agenda: severance quantum against your section 20 leverage, treatment of unvested ESOS and deferred bonus, pro-rated incentives, gardening leave terms, the reference and the announcement language, continuation of medical cover, and the restraints you are asked to carry out the door. Each has market conventions; knowing them is the negotiation.

Restrictive covenants in Malaysia

Here is leverage most executives do not know they hold: under section 28 of the Contracts Act 1950, agreements in restraint of trade are void in Malaysia save for narrow exceptions. Post-employment non-competes are generally unenforceable — though confidentiality and non-solicitation obligations framed as protecting trade secrets have more life. Employers pay for certainty; the covenant they cannot enforce is often the concession that funds a better severance.

The leverage in an exit negotiation is almost always the claim you are ready not to file.
The leverage in an exit negotiation is almost always the claim you are ready not to file.

Directors and officers

Where you sit on the board, resignation from directorships, Companies Act 2016 filings, D&O run-off cover and any shareholder or founder documents must move in step with the employment terms. We coordinate the full set so nothing is signed in isolation.

Questions we hear at assessments

Should I sign the first offer to "keep goodwill"?

Goodwill survives negotiation; under-settlement does not. A measured counter through counsel is standard practice at senior levels and no board reads it as hostility.

Can they hold my ESOS hostage?

Scheme rules govern — but "bad leaver" designations are frequently negotiable, and where dismissal itself is contestable, the designation is too. Bring the scheme documents to the first meeting.

Get it assessed properly.

Bring the documents; leave with the deadline, the merits and the next step in writing.

Mon–Fri 9am–6pm · Sat morning by appointment · +60 3-2202 4188

Call WhatsApp Book assessment