Document background
The Letter of Compensation Settlement is utilized in Singapore when employers and employees need to formalize the resolution of employment-related disputes, claims, or termination arrangements. This document is particularly important under Singapore's employment law framework as it provides clear documentation of the settlement terms, protecting both parties' interests. The letter typically includes specific details about compensation amounts, payment schedules, tax implications, CPF considerations, and mutual releases. It serves as a crucial tool in ensuring compliance with Singapore's employment regulations while providing clarity and finality to employment-related settlements.
