An Employee Severance Agreement is a crucial document used when terminating employment relationships in Singapore. It serves to protect both employer and employee interests by clearly documenting the terms of separation, including financial compensation, benefit arrangements, and ongoing obligations. The agreement must comply with Singapore's Employment Act, CPF regulations, and MOM guidelines while addressing specific circumstances such as notice periods, leave entitlements, and confidentiality requirements. This document is particularly important during restructuring, voluntary separation, or when implementing mutually agreed termination arrangements.
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1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Brief employment history and context for separation
3. Definitions: Key terms used throughout the agreement
4. Separation Date: Clear statement of employment termination date
5. Severance Payment: Amount, timing, and method of severance payment
6. Final Salary and Benefits: Treatment of outstanding salary, leave, and other benefits
7. Release of Claims: Mutual release of legal claims between parties
8. Confidentiality: Ongoing obligations regarding confidential information
9. Governing Law: Specification of Singapore law as governing law
1. Non-Competition: Restrictions on future employment activities - recommended for senior employees or those with access to sensitive information
2. Non-Solicitation: Restrictions on soliciting employees or customers - recommended for client-facing or management roles
3. Reference Letter: Terms regarding employment references - include when agreed as part of separation package
4. Continuation of Benefits: Extended medical or other benefits - include when offering post-termination benefits
1. Schedule 1: Calculation of Severance Payment: Detailed breakdown of severance payment components
2. Schedule 2: Outstanding Benefits: List of accrued benefits and their treatment
3. Schedule 3: Company Property: List of items to be returned to employer
4. Appendix A: Form of Release: Detailed release of claims document
5. Appendix B: Reference Letter Template: Agreed format for employment reference if applicable
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