Work Settlement Agreement Template for Singapore

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Key Requirements PROMPT example:

Work Settlement Agreement

"I need a Work Settlement Agreement for a senior software engineer who is leaving our Singapore tech company on March 15, 2025, including confidentiality provisions and a 6-month non-compete clause for the APAC region."

Document background
A Work Settlement Agreement is utilized when an employer and employee in Singapore agree to terminate their employment relationship on mutually agreed terms. This document is particularly relevant in scenarios involving reduNDAncy, voluntary separation, or resolution of workplace disputes. The agreement ensures compliance with Singapore's employment laws while protecting both parties' interests tHRough clear documentation of settlement terms, including financial compensation, confidentiality provisions, and releases of claims. It serves as a comprehensive record of the termination arrangement and helps prevent future disputes.
Suggested Sections

1. Parties: Identification of employer and employee

2. Background: Employment history and circumstances leading to settlement

3. Definitions: Key terms used in the agreement

4. Settlement Terms: Core financial and other terms of the settlement

5. Release and Waiver: Mutual release of claims

6. Confidentiality: Terms regarding non-disclosure of settlement

7. Tax Implications: Treatment of settlement payments for tax purposes

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

Optional Sections

1. Non-Disparagement: Mutual agreement not to make negative statements about each other

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

3. Return of Property: Requirements and timeline for returning company property

4. Post-Employment Restrictions: Non-compete and non-solicitation terms if applicable

Suggested Schedules

1. Schedule of Payments: Detailed breakdown of settlement amounts and payment timing

2. Company Property List: Inventory of items to be returned by the employee

3. Reference Letter Template: Agreed form of employment reference if applicable

4. Resignation Letter: Template or copy of formal resignation letter

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

Relevant legal definitions
Clauses
Industries

Employment Act (Chapter 91): Primary legislation governing basic terms and conditions of employment in Singapore. Post-2019 amendments cover all employees. Key areas include salary provisions, termination requirements, and notice periods.

Industrial Relations Act (Chapter 136): Legislation regulating relationships between employers and employees, particularly relevant for settlements involving unionized workers.

Income Tax Act (Chapter 134): Governs tax implications of settlement payments, including distinctions between taxable and non-taxable components of settlement amounts.

Central Provident Fund Act (Chapter 36): Addresses CPF contributions and obligations in relation to settlement payments, crucial for ensuring compliance with mandatory retirement savings requirements.

Personal Data Protection Act 2012: Regulates the handling and protection of employee personal data and confidentiality provisions in settlement agreements.

Limitation Act (Chapter 163): Establishes statutory time limits for making claims and reaching settlements in employment-related disputes.

Civil Law Act (Chapter 43): Contains general contract law principles affecting the enforceability and validity of settlement agreement terms.

Retirement and Re-employment Act: Specific legislation concerning older workers, including provisions for retirement benefits that may need to be addressed in settlement agreements.

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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