Company Separation Agreement Template for Singapore

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Key Requirements PROMPT example:

Company Separation Agreement

"I need a Company Separation Agreement for a senior software engineer leaving our Singapore tech company on March 15, 2025, with a 3-month non-compete clause and standard confidentiality provisions."

Document background
The Company Separation Agreement is essential when formally ending an employment relationship in Singapore. This document is particularly important for protecting both parties' interests and ensuring compliance with local employment laws. It is commonly used in situations involving mutual separation, redundancy, or negotiated exits. The agreement covers crucial elements including final payments, benefits, continuing obligations, and releases of claims. Under Singapore's legal framework, such agreements must comply with the Employment Act, CPF regulations, and data protection laws. The document serves as a comprehensive record of the separation terms and helps prevent future disputes.
Suggested Sections

1. Parties: Identification of employer and employee

2. Background: Context of employment and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Separation Date: Official termination date and final working day

5. Final Payment: Details of final salary, pro-rated bonuses, and other payments

6. Release of Claims: Mutual release of claims between parties

7. Confidentiality: Ongoing obligations regarding confidential information

8. Return of Property: Process and timeline for returning company assets

Optional Sections

1. Non-Compete: Restrictions on future employment - typically used for senior employees or those with access to sensitive information

2. Non-Solicitation: Restrictions on approaching clients or employees - for client-facing or management roles

3. Reference Letter: Terms regarding future employment references - included when agreed as part of separation terms

4. Outplacement Services: Support for finding new employment - used in redundancy situations or as part of enhanced package

Suggested Schedules

1. Schedule 1: Final Payment Calculation: Detailed breakdown of all final payments including salary, benefits, and deductions

2. Schedule 2: Company Property List: Comprehensive inventory of company items to be returned by the employee

3. Schedule 3: Continuing Obligations: List of surviving contractual obligations post-employment

4. Appendix A: Form of Release: Standard release document to be signed by both parties

5. Appendix B: Reference Letter Template: Agreed format and content for future employment references

Authors

Alex Denne

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

Clauses
Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering basic terms and conditions, termination provisions, notice periods, salary and leave entitlements, and core protections for all employees.

Employment Claims Act 2016: Establishes framework for employment dispute resolution, including statutory limits for claims and mediation procedures.

Personal Data Protection Act 2012 (PDPA): Regulates the treatment of employee personal data, including data retention, destruction requirements, and privacy obligations during and after employment.

Central Provident Fund Act (Chapter 36): Governs mandatory social security savings system, including employer CPF contribution obligations and treatment of outstanding CPF matters during separation.

Income Tax Act (Chapter 134): Determines tax treatment of final payments and benefits, including tax clearance requirements for departing employees.

Competition Act (Chapter 50B): Relevant for non-compete clauses and protection of trade secrets in separation agreements.

Retirement and Re-employment Act: Specifies requirements for retirement benefits and re-employment obligations, particularly relevant for older employees.

Industrial Relations Act: Governs relationships with unionized employees and implications of collective agreements in separation situations.

Contract Law: Provides framework for contractual obligations, enforcement, consideration requirements, and severability of terms in separation agreements.

Companies Act (Chapter 50): Outlines director's duties and corporate governance requirements relevant to separation agreements, particularly for senior executives.

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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