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Termination And Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Termination And Settlement Agreement

"I need a Termination And Settlement Agreement for a senior software engineer in Singapore who is leaving voluntarily on March 15, 2025, with specific provisions for unvested stock options and ongoing consultancy arrangements for knowledge transfer."

Document background
The Termination And Settlement Agreement is a crucial document used when ending employment relationships in Singapore, whether tHRough mutual agreement or unilateral termination. It serves to document all aspects of the separation, including financial settlements, continuing obligations, and mutual releases. This agreement is particularly important in Singapore's highly regulated employment environment, where it helps ensure compliance with the Employment Act, Central Provident Fund Act, and other relevant legislation. The document typically includes detailed provisions about settlement sums, tax treatment, confidentiality obligations, and non-compete restrictions where applicable.
Suggested Sections

1. Parties: Identification of employer and employee with full legal names and details

2. Background: Employment history, context for termination, and basis for the agreement

3. Definitions: Key terms used tHRoughout the agreement including defined terms

4. Termination Date: Specific date of employment termination and final working day

5. Settlement Sum: Details of all payments including quantum, timing, and tax treatment

6. Release of Claims: Mutual release and waiver of all claims between parties

7. Confidentiality: Ongoing obligations regarding confidential information and agreement terms

8. Governing Law: Specification of Singapore law as governing law and jurisdiction

Optional Sections

1. Non-Compete Provisions: Restrictions on future employment and business activities

2. Reference: Terms regarding employment references and agreed form of reference

3. Company Property: Provisions for return of company assets and confirmation of return

4. Share Options/Awards: Treatment of outstanding share options, RSUs or other equity compensation

Suggested Schedules

1. Schedule of Payments: Detailed breakdown of settlement sum components and payment timeline

2. Company Property Schedule: Itemized list of company property to be returned

3. Reference Letter: Agreed form of reference letter template

4. Outstanding Benefits Schedule: Comprehensive list of benefits and their treatment post-termination

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 legislation governing employment relationships in Singapore, covering basic terms of employment, termination notice periods, salary and leave entitlements, and requirements for final settlement of wages

Central Provident Fund Act (Chapter 36): Legislation governing mandatory social security savings system, including requirements for CPF contributions and settlement of outstanding CPF obligations during termination

Industrial Relations Act (Chapter 136): Regulates relations between employers and trade unions, including provisions relating to union members and collective agreement considerations

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data, including requirements for handling employee personal data and data retention post-termination

Contract Law: Common law principles under Singapore contract law, covering requirements for valid consideration and enforceability of contractual terms

Civil Law Act (Chapter 43): Provides general contract law principles and imposes restrictions on certain types of contracts under Singapore law

Income Tax Act: Governs tax implications of settlement payments and associated reporting requirements for both employer and employee

Limitation Act (Chapter 163): Sets out time limits for various types of claims and enforcement actions in Singapore

Employment Claims Act 2016: Establishes jurisdiction over employment disputes and sets out requirements for employment-related claims and settlements

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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