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Separation Agreement And Release Template for Singapore

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Key Requirements PROMPT example:

Separation Agreement And Release

"I need a Separation Agreement And Release for a senior software engineer in Singapore who is leaving voluntarily on March 15, 2025, with a 3-month non-compete clause and continuation of medical benefits for 2 months after departure."

What is a Separation Agreement And Release?

The Separation Agreement And Release is a crucial document in Singapore's employment landscape, used when employment relationships are terminated by mutual agreement or as part of a restructuring exercise. It provides legal protection for both employers and employees by clearly documenting the terms of separation, including financial settlements, continuing obligations, and releases of claims. This document must align with Singapore's Employment Act, CPF regulations, and MOM guidelines. It's particularly important in situations involving senior employees, redundancies, or when significant severance packages are involved. The agreement helps prevent future disputes by ensuring all parties understand and agree to the separation terms.

What sections should be included in a Separation Agreement And Release?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Brief employment history and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Separation Date: Clear statement of employment termination date

5. Final Payment Terms: Details of final salary, unused leave, and severance package

6. Release of Claims: Mutual release of legal claims between parties

7. Confidentiality: Ongoing obligations regarding company information

8. Return of Property: Process for returning company assets

What sections are optional to include in a Separation Agreement And Release?

1. Non-Compete Clause: Restrictions on future employment - for senior employees or those with access to sensitive information

2. Reference Provision: Terms of employment references - when agreed to provide employment references

3. Outplacement Services: Support for finding new employment - when offering career transition assistance

4. Medical Benefits Extension: Continuation of health coverage - when extending medical benefits post-termination

What schedules should be included in a Separation Agreement And Release?

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, leave, and severance

2. Schedule 2 - Company Property List: Inventory of company items to be returned by the employee

3. Schedule 3 - Confidential Information: Specific details of confidential information covered by the agreement

4. Appendix A - Benefits Summary: Summary of any continuing benefits and their duration post-termination

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























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Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination procedures, notice periods, salary obligations, and wrongful dismissal provisions

Employment Claims Act 2016: Framework for resolving employment disputes and claims through the Employment Claims Tribunal, including jurisdiction and procedures

Industrial Relations Act (Chapter 136): Legislation governing union-management relations and collective agreements, relevant if employee is unionized

Personal Data Protection Act 2012: Regulations on handling and protection of personal data, including requirements for data retention and employee privacy

Central Provident Fund Act (Chapter 36): Laws governing mandatory social security savings system, including employer-employee contributions and settlement requirements

Income Tax Act (Chapter 134): Tax legislation relevant to severance payments and associated reporting obligations

Retirement and Re-employment Act: Legislation protecting older workers and governing retirement-related employment matters for employees above 62 years

MOM Guidelines: Ministry of Manpower guidelines on fair employment practices, excess manpower management, and wrongful dismissal

Contract Law: Common law principles governing contract formation, consideration, and enforceability of contractual terms

Competition Act (Chapter 50B): Legislation relevant to non-compete clauses and restrictions on future employment in separation agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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