Standard Termination Agreement Template for Singapore

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Key Requirements PROMPT example:

Standard Termination Agreement

"I need a Standard Termination Agreement under Singapore law for a senior software engineer who is leaving amicably on March 15, 2025, with a 3-month non-compete clause and agreements about ongoing intellectual property obligations."

Document background
The Standard Termination Agreement is used in Singapore when an employer and employee mutually agree to end their employment relationship. This document is essential for protecting both parties' interests and ensuring compliance with Singapore employment law. It typically includes provisions for final payments, benefits, confidentiality obligations, and releases of claims. The agreement should be carefully drafted to address specific requirements under the Employment Act, CPF Act, and other relevant Singapore legislation. It's particularly important when terminating senior employees or in situations requiring clear documentation of separation terms.
Suggested Sections

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

2. Background: Brief employment history and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date employment relationship ends

5. Final Payment Terms: Details of final salary, prorated bonuses, and other payments

6. Mutual Release: Release of claims between parties

7. Governing Law: Specification of Singapore law as governing law

Optional Sections

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

2. Ongoing Confidentiality: Continued obligations regarding confidential information - used when employee had access to sensitive information

3. Reference Provision: Terms regarding future employment references - used when agreed as part of termination package

4. Handover Obligations: Process for transferring responsibilities - used for roles requiring significant handover

Suggested Schedules

1. Schedule 1 - Final Payment Calculation: Detailed breakdown of all final payments including salary, leave, and other entitlements

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

3. Schedule 3 - Ongoing Obligations: List of surviving contractual obligations post-termination

4. Appendix A - Original Employment Contract: Reference copy of employment agreement 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 mandatory notice periods, calculation of final payments, treatment of unused leave, and requirements for termination procedures

Industrial Relations Act (Chapter 136): Legislation governing labor-management relations, specifically provisions relating to unionized employees and collective agreement requirements in termination scenarios

Central Provident Fund Act (Chapter 36): Governs mandatory social security savings system, including CPF contribution obligations and treatment of CPF during employment termination

Companies Act (Chapter 50): Corporate law requirements including corporate authority requirements and director's duties if termination involves key personnel

Personal Data Protection Act 2012: Regulations concerning the handling and protection of personal data, including data retention requirements post-termination

Contract Law Principles: Common law principles governing contract termination, consideration requirements, and mutual agreement principles under Singapore law

Workplace Safety and Health Act: Legislation governing workplace safety, including any ongoing obligations post-termination of employment

Additional Legal Considerations: Key aspects including non-compete clauses enforceability, confidentiality obligations, intellectual property rights, release of claims, tax implications, severance payments, return of company property, and outstanding 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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