The Mutual Severance Agreement is utilized when both employer and employee in Singapore agree to terminate their employment relationship amicably. This document is particularly relevant during corporate restructuring, voluntary departures, or when both parties seek a clean break with clearly defined terms. The agreement must comply with Singapore's Employment Act, Central Provident Fund regulations, and other relevant legislation. It typically includes provisions for severance payment, confidentiality, non-competition, release of claims, and ongoing obligations. The document serves to protect both parties' interests and minimize the risk of future disputes.
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1. Parties: Identification of employer and employee, including full legal names and registered addresses
2. Background: Brief history of employment relationship and reason for mutual severance
3. Definitions: Key terms used tHRoughout the agreement including 'Termination Date', 'Severance Payment', etc.
4. Termination of Employment: Formal statement of employment termination and effective date
5. Severance Payment: Details of severance package, payment schedule, and tax implications
6. Release of Claims: Mutual release of legal claims between parties
7. Confidentiality: Ongoing obligations regarding company confidential information
1. Non-Competition: Restrictions on future employment - recommended for senior employees or those with access to sensitive information
2. Non-Solicitation: Restrictions on approaching company clients or employees - recommended for client-facing roles or management positions
3. References: Agreement on nature and content of references - include when specifically negotiated by employee
4. Outplacement Services: Provision of career transition support - typically included for senior roles or as part of enhanced packages
5. Continuation of Benefits: Extension of medical or other benefits post-termination - include when agreed as part of severance package
1. Schedule 1 - Severance Payment Calculation: Detailed breakdown of severance payment components
2. Schedule 2 - Company Property: List of items to be returned to employer
3. Schedule 3 - Outstanding Benefits: List of accrued benefits and their treatment
4. Appendix A - Reference Letter Template: Agreed format and content of reference letter if applicable
5. Appendix B - CPF Treatment: Details of CPF contributions and calculations
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