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Employee Severance Letter

Employee Severance Letter Template for Singapore

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Key Requirements PROMPT example:

Employee Severance Letter

"I need an Employee Severance Letter for a senior software engineer in Singapore who is being let go due to restructuring, with a three-month notice period starting March 1, 2025, including standard non-compete provisions and outplacement services."

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Document background
The Employee Severance Letter is a crucial document used when employment relationships are terminated in Singapore, whether through redundancy, restructuring, or other circumstances. It must align with Singapore's Employment Act and MOM guidelines, providing clear documentation of the termination terms, severance package, and final settlements. This document helps ensure compliance with local employment laws while protecting both employer and employee interests. The Employee Severance Letter typically includes payment terms, benefit arrangements, and any continuing obligations, serving as a definitive record of the separation agreement.
Suggested Sections

1. Date and Address Block: Formal letter heading with date and employee's details

2. Termination Statement: Clear statement of employment termination and effective date

3. Severance Payment Details: Breakdown of severance package and payment terms

4. Final Salary and Benefits: Details of final salary, unused leave, and other benefits

5. Return of Company Property: Instructions for returning company assets and materials

6. Signature Blocks: Space for both employer and employee signatures

Optional Sections

1. Non-Compete Clause: Restrictions on future employment with competitors - used for senior positions or roles with access to sensitive information

2. Reference Letter Offer: Statement regarding provision of employment references - included when company policy allows for references

3. Outplacement Services: Details of career transition support - included when company provides such services

4. Healthcare Extension: Information about continued medical coverage - included when offering extended health benefits

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation

2. Schedule B - Benefits Summary: List of final benefits and their treatment

3. Schedule C - Company Property Checklist: Itemized list of company property to be returned

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




















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Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination procedures, notice periods, salary calculations, and leave entitlements during separation

Central Provident Fund (CPF) Act: Regulates mandatory social security savings system, including requirements for final CPF contributions and payment obligations during employment termination

Income Tax Act: Governs the tax treatment of severance payments, reporting obligations for employer and employee, and tax clearance requirements for foreign employees

Ministry of Manpower (MOM) Guidelines: Official guidelines covering mandatory retrenchment notifications, fair retrenchment practices, and Tripartite Guidelines on Fair Employment Practices

Employment Claims Act 2016: Establishes framework for employment dispute resolution and handling of salary-related claims during termination

Personal Data Protection Act (PDPA): Regulates the handling and retention of employee personal data during and after the termination process

Industrial Relations Act: Covers collective agreements and union-related considerations during employee termination

Retirement and Re-employment Act: Addresses specific requirements for termination of employees at or near retirement age, including re-employment obligations

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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