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Separation And Settlement Agreement for Singapore

Separation And Settlement Agreement Template for Singapore

A legally binding document under Singapore law that formalizes the termination of employment between an employer and employee. It outlines the terms and conditions of the separation, including final payments, benefits, confidentiality obligations, and mutual releases of claims. The agreement complies with Singapore's Employment Act and related legislation, providing both parties with clarity and protection regarding their rights and obligations post-employment.

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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) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use

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