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Separation Agreement And Release Of Claims

Separation Agreement And Release Of Claims Template for Singapore

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Separation Agreement And Release Of Claims

"Need a Separation Agreement And Release Of Claims for a senior software engineer leaving voluntarily, including stock option provisions and agreement to provide technical consultation for 3 months post-departure starting March 2025."

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What is a Separation Agreement And Release Of Claims?

The Separation Agreement And Release Of Claims is a crucial document used in Singapore when formally ending an employment relationship. It serves to protect both employer and employee interests by clearly documenting the terms of separation, including financial settlements, continuing obligations, and mutual releases. This agreement is particularly important in Singapore's highly regulated employment environment, where it must comply with the Employment Act, Personal Data Protection Act, and other relevant legislation. It typically includes provisions for final payments, benefit arrangements, confidentiality requirements, and release of potential legal claims, while ensuring all statutory obligations are met.

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

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

2. Background: Brief history of employment relationship and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Separation Terms: Last day of employment, handover requirements, and final duties

5. Payment Terms: Separation package details, final salary, and benefits payment

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

7. Confidentiality: Ongoing obligations regarding company information

8. Return of Property: Requirements for returning company assets and documents

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

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

2. Reference Letter: Terms regarding employment references - included when agreed as part of separation package

3. Outplacement Services: Career transition support provisions - included when offering career transition assistance

4. Equity/Stock Options: Treatment of outstanding equity compensation - included when employee has stock options or equity awards

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

1. Schedule 1: Payment Calculation: Detailed breakdown of separation payment amounts

2. Schedule 2: Company Property List: Inventory of items to be returned

3. Appendix A: Reference Letter Template: Agreed form of reference letter if applicable

4. Appendix B: Outstanding Benefits Statement: Summary of accrued benefits and entitlements

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

alex.den.21@genieai.co
Relevant legal definitions

























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Industries

Employment Act (Chapter 91): Primary employment legislation covering termination provisions, mandatory benefits, notice periods, and salary obligations. Key considerations include statutory minimums for termination benefits and proper calculation of final payments.

Employment Claims Act 2016: Governs employment dispute resolution, including mediation requirements and claims limitations. Must be considered when drafting release clauses to ensure enforceability.

Personal Data Protection Act 2012: Regulates the handling of employee personal data, including requirements for data retention, destruction, and ongoing privacy obligations post-employment.

Industrial Relations Act: Relevant for unionized employees, covering collective agreement requirements and union-related considerations in separation agreements.

Retirement and Re-employment Act: Applicable for employees at or near retirement age, specifying re-employment obligations and related benefits.

Central Provident Fund Act: Governs mandatory retirement savings contributions, requiring proper handling of CPF matters in separation agreements including outstanding contributions.

Income Tax Act: Determines tax treatment of separation payments and associated reporting obligations for both employer and employee.

Contract Law (Common Law): Fundamental principles governing contract formation, consideration requirements, and validity of releases and waivers under Singapore common law.

Civil Law Act: Provides framework for enforceability of contractual provisions in separation agreements under Singapore civil law.

Limitation Act: Sets time limits for bringing claims, which must be considered when drafting release clauses and determining scope of claims released.

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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