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Service Termination Letter Template for Singapore

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Key Requirements PROMPT example:

Service Termination Letter

"I need a Service Termination Letter for a senior software engineer who is being let go due to company restructuring, with a three-month notice period starting March 1, 2025, including provisions for project handover and strict non-compete clauses."

Document background
The Service Termination Letter is a crucial document in Singapore's employment landscape, used when an employer needs to formally terminate an employee's services. This document must be drafted in accordance with Singapore's Employment Act and related legislation, ensuring compliance with statutory notice periods, payment obligations, and employee rights. The letter typically includes essential information such as termination date, notice period, final payment details, and handover requirements. It serves as both a legal record and a practical guide for the termination process, protecting both employer and employee interests while ensuring a proper conclusion to the employment relationship.
Suggested Sections

1. Date and Address Block: Current date and recipient's full address details

2. Subject Line: Clear indication that this is a termination notice

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

4. Notice Period: Specification of notice period and last working day

5. Final Payment Details: Information about final salary, benefits, and other payments

6. Company Property: Instructions for returning company property

7. Signature Block: Company representative's signature and details

Optional Sections

1. Reason for Termination: Include when termination is for cause or restructuring - use when transparency about termination reason is required or beneficial

2. Non-Compete Reminder: Reminder of existing non-compete obligations - use when employee is bound by non-compete clauses

3. Reference Provision: Information about providing references - use when company policy allows for references

Suggested Schedules

1. Final Settlement Calculation: Detailed breakdown of final payment including salary, leave encashment, and other benefits

2. Handover Checklist: List of items and responsibilities to be handed over

3. Exit Clearance Form: Document tracking return of company property and clearance from various departments

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Industries

Employment Act (Chapter 91): Primary employment legislation covering notice periods, salary and benefits payment obligations, leave encashment provisions, and required statutory payments

Central Provident Fund Act: Governs mandatory social security savings system, including CPF contribution settlements and final CPF payment obligations during employment termination

Employment Claims Act 2016: Regulates salary-related claims and dispute resolution procedures in employment termination cases

Employment of Foreign Manpower Act: Specific requirements for foreign employees including work pass cancellation procedures during termination

Personal Data Protection Act 2012: Guidelines for handling employee's personal data and data retention requirements during and after termination

Industrial Relations Act: Covers requirements for unionized employees and collective agreement compliance in termination scenarios

MOM Guidelines: Ministry of Manpower guidelines covering fair termination practices, retrenchment benefits, and tripartite guidelines

Contract Law: Common law principles governing contractual notice periods, terms of original employment contract, and breach of contract considerations

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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