A Mutual Separation Agreement is utilized when both employer and employee agree to end their employment relationship amicably. This document, governed by Singapore law, provides legal protection for both parties by clearly defining separation terms, financial settlements, and ongoing obligations. It typically includes provisions for final payments, benefit arrangements, confidentiality requirements, and mutual releases. The agreement ensures compliance with Singapore's Employment Act and related regulations while offering a structured approach to employment termination that minimizes potential disputes.
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1. Parties: Identification of employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship and mutual decision to separate
3. Definitions: Key terms used throughout the agreement
4. Separation Date: Clear statement of the effective date of employment termination
5. Final Payments: Details of salary, benefits, and other compensation due
6. Mutual Release: Waiver of claims by both parties
7. Confidentiality: Ongoing obligations regarding company information
8. Governing Law: Specification of Singapore law as governing law
1. Garden Leave: Terms of any garden leave period - used when employee is to remain employed but not working during notice period
2. Reference: Terms of employment reference to be provided - used when parties agree on providing employment reference
3. Non-Compete: Post-employment competition restrictions - used for senior employees or when existing contract contains such provisions
4. Outplacement Support: Details of career transition assistance - used when company offers outplacement services
1. Schedule 1 - Payment Calculation: Detailed breakdown of final payments including salary, leave, bonuses
2. Schedule 2 - Company Property: List of company assets to be returned
3. Schedule 3 - Benefits Continuation: Details of any benefits extending beyond separation date
4. Appendix A - Handover Plan: Timeline and responsibilities for knowledge transfer
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