Ending A Fixed Term Contract Early Template for Singapore

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Key Requirements PROMPT example:

Ending A Fixed Term Contract Early

"I need to draft a document for Ending A Fixed Term Contract Early with my software developer who was hired for a 2-year project but needs to leave 6 months early in March 2025 due to family commitments, including provisions for knowledge transfer and the return of company equipment."

Document background
When parties need to end a fixed-term employment contract before its natural expiry date in Singapore, this document provides the necessary legal framework. The document 'Ending A Fixed Term Contract Early' ensures compliance with Singapore employment law while protecting both parties' interests. It includes essential elements such as termination date, notice period, financial settlements, and ongoing obligations. This agreement is particularly relevant when business circumstances change, project requirements shift, or when both parties mutually agree to end the relationship early.
Suggested Sections

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

2. Background: Context of the original fixed-term contract and reason for early termination

3. Definitions: Key terms used in the termination agreement

4. Termination Date: Specific date when employment will end

5. Financial Settlement: Details of final payment, including salary, benefits, and any compensation

6. Mutual Release: Waiver of claims between parties

Optional Sections

1. Garden Leave: Terms of garden leave if applicable during notice period where employee is asked to serve notice period away from workplace

2. Post-termination Restrictions: Non-compete and non-solicitation clauses that continue to apply after termination

3. Work Pass Cancellation: Procedures and requirements for cancelling work passes for foreign workers

Suggested Schedules

1. Schedule 1: Payment Calculation: Detailed breakdown of final payment and benefits

2. Schedule 2: Company Property: List of items to be returned to employer

3. Appendix A: Original Contract: Copy of the original fixed-term contract being terminated

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

Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination procedures, notice periods, salary provisions, and benefits during notice period. Notable updates from April 2019 amendments must be considered.

Employment Claims Act 2016: Framework for employment dispute resolution, including jurisdiction of Employment Claims Tribunals and procedures for handling contractual disputes.

Industrial Relations Act (Chapter 136): Legislation governing union relations and collective agreements, relevant if the employee is unionized or covered by collective agreements.

Common Law Principles: Legal principles regarding contractual breach, remedies for fixed-term contract breaches, and doctrine of frustration in contract law.

MOM Guidelines: Ministry of Manpower guidelines including Fair Employment Practices and Tripartite Guidelines on Managing Excess Manpower.

Work Pass Requirements: Regulations governing Employment Pass, S Pass, and Work Permit conditions for foreign employees if applicable.

Notice Period Requirements: Specific provisions regarding mandatory notice periods and payment in lieu of notice for early contract termination.

Compensation Calculations: Framework for calculating final payments, including pro-rated bonuses, outstanding benefits, and early termination compensation.

Post-Termination Obligations: Requirements regarding confidentiality, return of company property, and post-termination restrictions.

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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