The Employee Repayment Agreement Letter is a crucial document used in Singapore when an employer needs to establish a formal arrangement for recovering costs from an employee. These costs typically relate to training, education, certification, or equipment provided to the employee. The agreement must comply with Singapore's Employment Act and MOM guidelines, particularly regarding salary deductions and fair employment practices. This document is commonly used when employees receive advance benefits or training with a condition of continued employment, or when recovering costs due to early resignation or breach of employment terms. The letter clearly outlines repayment terms, schedules, and obligations while ensuring legal compliance and protection for both parties.
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1. Employee Details: Full name, designation, employee ID, department of the employee subject to repayment
2. Repayment Amount: Total sum to be repaid and detailed breakdown of costs involved
3. Reason for Repayment: Clear explanation of what the repayment covers (e.g., training costs, equipment, advances)
4. Payment Terms: Schedule of repayment, installment amounts, and specified payment method
5. Trigger Conditions: Specific circumstances that activate the repayment obligation
1. Interest Terms: Details of interest charges on repayment, including rate and calculation method
2. Early Repayment Terms: Conditions and process for early repayment options
3. Default Provisions: Consequences and procedures in case of default on repayment
1. Repayment Schedule: Detailed breakdown of payment dates and corresponding amounts
2. Cost Breakdown: Itemized list of costs being repaid with individual amounts
3. Original Agreement Reference: Reference to previous agreement if repayment relates to existing contract (e.g., training bond)
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