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Separation And Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Separation And Settlement Agreement

"I need a Separation and Settlement Agreement for a senior software engineer leaving our Singapore tech company on March 15, 2025, including standard non-compete provisions and treatment of unvested stock options."

What is a Separation And Settlement Agreement?

The Separation And Settlement Agreement is a crucial document used in Singapore when employment relationships are terminated by mutual consent or as part of a negotiated exit. It serves to protect both employer and employee interests by clearly documenting the terms of separation, including financial settlements, continuing obligations, and releases of claims. This agreement must comply with Singapore's Employment Act, Central Provident Fund regulations, and other relevant legislation. It's particularly important in scenarios involving senior executives, sensitive positions, or when there's a need to ensure clear documentation of separation terms to prevent future disputes.

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

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

2. Background: Context of employment relationship and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Separation Terms: Date of separation and immediate effects

5. Final Payment Terms: Breakdown of final payments including salary, leave, and other entitlements

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

7. Confidentiality Obligations: Ongoing duties regarding confidential information

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

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

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

2. Outplacement Support: Terms of career transition assistance and support services offered by the company

3. Medical Benefits Extension: Terms regarding continuation of healthcare coverage and medical benefits post-separation

4. Share Options/Awards: Treatment of outstanding equity compensation, vesting schedules, and exercise periods

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

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments and deductions

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

3. Schedule 3 - Benefits Summary: Details of benefit termination dates and any continued coverage

4. Appendix A - Confidential Information Definition: Detailed description of what constitutes confidential information

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 (Cap. 91): Primary legislation governing basic employment terms and conditions, including payment of salary, notice periods, and employment benefits. 2019 amendments extended coverage to all employees except domestic workers, seafarers, and public servants.

Central Provident Fund Act (Cap. 36): Regulates employer CPF contributions, requirements for final CPF payments, and treatment of CPF during employment separation.

Income Tax Act (Cap. 134): Addresses tax implications of separation payments, treatment of benefits and compensation, and tax clearance requirements for departing foreign employees.

Personal Data Protection Act 2012: Governs handling of employee's personal data, data retention and destruction requirements, and confidentiality obligations.

Industrial Relations Act (Cap. 136): Applies to union members, covers collective agreement considerations and dispute resolution mechanisms.

Employment Claims Act 2016: Establishes framework for employment disputes, jurisdiction of Employment Claims Tribunals, and settlement requirements.

Retirement and Re-employment Act: Addresses special considerations for retirement-eligible employees and older workers.

Competition Act (Cap. 50B): Covers non-compete clauses, trade secrets protection, and restrictive covenants in employment separation.

Companies Act (Cap. 50): Addresses corporate authority requirements, director's duties, and company secretary obligations in employment matters.

Key Agreement Components: Essential elements including terms of separation, final payment calculations, benefits cessation, confidentiality provisions, non-disparagement clauses, release of claims, return of company property, post-employment restrictions, tax considerations, and dispute resolution mechanisms.

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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