The Severance Release Agreement is utilized in Singapore when employment relationships are terminated by mutual agreement or as part of a redundancy exercise. It serves as a comprehensive document that protects both employer and employee interests by clearly defining separation terms, compensation, and ongoing obligations. This agreement is particularly important in Singapore's highly regulated employment environment, where it must align with the Employment Act, CPF requirements, and MOM guidelines. It typically includes detailed provisions about severance payments, tax implications, and releases of claims, while ensuring compliance with local employment laws and fair practice requirements.
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Key Requirements PROMPT example:
Severance Release Agreement
"I need a Severance Release Agreement under Singapore law for a senior software engineer who is being made redundant due to restructuring, with a negotiated severance package of 6 months' salary and continued health benefits until March 2025."
1. Parties: Identifies the employer and employee entering into the agreement
2. Background: States employment history and reason for separation
3. Definitions: Defines key terms used throughout the agreement
4. Separation Terms: Details the termination date and final working arrangements
5. Severance Payment: Specifies the amount, timing, and method of severance payment
6. Release of Claims: Employee's waiver of claims against the employer
7. Confidentiality: Ongoing obligations regarding confidential information
8. Return of Company Property: Requirements for returning company assets and documents
1. Non-Competition: Restrictions on future employment - typically used for senior employees or those with access to sensitive information
2. Non-Solicitation: Restrictions on soliciting employees or customers - typically used for client-facing or management roles
3. Reference Letter: Terms regarding future employment references - included when agreed as part of separation package
4. Outplacement Services: Provision of career transition support - typically included for senior roles or mass redundancies
1. Schedule of Benefits: Detailed breakdown of severance package components
2. Outstanding Company Property: List of items to be returned
3. Form of Release: Formal release document to be signed
4. Continuing Obligations: List of surviving terms from employment contract
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