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Voluntary Layoff Letter Template for Singapore

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Key Requirements PROMPT example:

Voluntary Layoff Letter

"I need a Voluntary Layoff Letter for our Singapore office that includes a generous severance package of 6 months' salary and continued health benefits until March 2025, to be offered to 15 senior engineers as part of our restructuring program."

Document background
The Voluntary Layoff Letter is utilized when organizations in Singapore implement workforce reduction programs that allow employees to voluntarily separate from the company. This document is crucial during corporate restructuring, cost optimization initiatives, or when providing alternatives to mandatory retrenchment. It includes comprehensive details about severance compensation, benefit continuation, final payments, and other separation terms, all in compliance with Singapore's Employment Act and MOM guidelines. The letter serves as both a formal offer and, once accepted, a binding agreement between the employer and employee.
Suggested Sections

1. Opening Statement: Clearly stating the purpose of the letter and its voluntary nature

2. Effective Date: Specific date when employment will terminate

3. Severance Package: Detailed breakdown of compensation and benefits

4. Final Payments: Information about salary, unused leave, and other entitlements

5. Benefits Termination: Details about the end of employment benefits

6. Company Property: Instructions for returning company property

Optional Sections

1. Reference Letter: Offer of employment reference, used when company policy allows

2. Outplacement Services: Details of career transition support, if offered

3. Non-Competition Clause: Restrictions on future employment, if applicable

Suggested Schedules

1. Severance Calculation Sheet: Detailed breakdown of severance package components

2. Benefits Summary: Summary of continuing and terminating benefits

3. Release Agreement: Legal document releasing employer from claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























Clauses
























Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination procedures, notice periods, and payment obligations during employment termination

Employment Claims Act 2016: Legislative framework for resolving employment disputes and establishing statutory requirements for termination benefits in Singapore

MOM Tripartite Guidelines: Official guidelines from Ministry of Manpower covering managing excess manpower, fair employment practices, and responsible retrenchment procedures

Central Provident Fund Act: Legislation governing Singapore's social security system, including requirements for CPF contributions and settlement during employment termination

Income Tax Act: Tax legislation relevant to severance packages and associated reporting requirements in Singapore

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data, including requirements for handling employee information during termination

Notice Period Requirements: Statutory requirements for minimum notice periods based on length of service as per Employment Act

Severance Package Guidelines: Requirements and best practices for structuring voluntary separation packages including benefits, compensation, and other entitlements

Confidentiality Requirements: Legal requirements and best practices for maintaining confidentiality during and after the voluntary layoff process

Release of Claims: Legal provisions for documenting the release of potential claims against the employer as part of the voluntary layoff agreement

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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