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Employment Separation Agreement for Singapore

Employment Separation Agreement Template for Singapore

A legally binding agreement under Singapore law that formalizes the termination of employment between an employer and employee. The document outlines the terms of separation, including final payments, benefits, continuing obligations, and mutual releases of claims. It ensures compliance with Singapore's Employment Act and related legislation while providing clarity and protection for both parties.

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What is a Employment Separation Agreement?

An Employment Separation Agreement 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. The agreement must comply with Singapore's Employment Act and related legislation, including CPF requirements and minimum notice periods. This document is particularly important for managing legal risk, ensuring clear communication, and providing certainty in employment terminations.

What sections should be included in a Employment Separation Agreement?

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 Date: Specific date employment relationship ends and final working day details

5. Final Payment Terms: Details of final salary, leave encashment, CPF contributions and other payments

6. Release of Claims: Mutual release of legal claims between parties under Singapore employment laws

7. Confidentiality Obligations: Ongoing duties regarding company information and trade secrets

8. Return of Company Property: Process and timeline for returning company assets and data

What sections are optional to include in a Employment Separation Agreement?

1. Severance Payment: Additional compensation beyond statutory requirements, including calculation method and payment schedule

2. Non-Competition: Restrictions on working for competitors within Singapore, including duration and geographical scope

3. Non-Solicitation: Restrictions on approaching company clients/employees for a specified period

4. Reference Letter: Terms regarding future employment references and agreed communication to third parties

5. Outplacement Services: Details of career transition assistance and support services provided

What schedules should be included in a Employment Separation Agreement?

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, leave, bonuses and statutory contributions

2. Schedule 2 - Company Property Checklist: Comprehensive list of company assets, documents and data to be returned

3. Schedule 3 - Benefits Summary: Details of benefit continuation or termination, including insurance and other perks

4. Schedule 4 - Reference Letter Template: Agreed format and content of employment reference if applicable

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

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Industries

Employment Act (Cap. 91): Primary legislation governing employment relationships in Singapore, covering statutory minimum notice periods, salary payments, and basic employment terms

Employment Claims Act 2016: Legislation governing resolution of employment disputes and salary-related claims in Singapore

Retirement and Re-employment Act: Legislation concerning retirement age, re-employment obligations and related benefits for elderly employees

Central Provident Fund Act: Mandatory social security savings scheme requirements, including employer contributions and obligations during separation

Personal Data Protection Act 2012: Requirements for handling employee personal data during and after employment relationship

Trade Secrets Act: Protection of confidential information and trade secrets post-employment

Notice Period Requirements: Statutory minimum notice periods and payment in lieu of notice calculations

Final Payment Obligations: Requirements for final salary, pro-rated leave, overtime, expense reimbursements, and CPF contributions

Severance Benefits: Guidelines for retrenchment benefits based on years of service and Ministry of Manpower recommendations

Non-Competition Provisions: Enforceability requirements and reasonable restrictions under Singapore contract law

Data Protection Obligations: Requirements for handling employee data and return of company information post-separation

Claims and Releases: Consideration of potential claims under Workplace Safety and Health Act, harassment prevention, and discrimination

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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