Downsizing Termination Letter for Singapore

Downsizing Termination Letter Template for Singapore

A formal document issued under Singapore employment law that notifies an employee of their employment termination due to organizational downsizing or restructuring. The letter complies with Singapore's Employment Act and Tripartite Guidelines, including mandatory notice periods, retrenchment benefits, and proper documentation requirements. It outlines the termination date, final payment details, and post-employment obligations while ensuring compliance with local labor regulations.

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What is a Downsizing Termination Letter?

The Downsizing Termination Letter is a crucial document used when companies in Singapore need to reduce their workforce due to economic conditions, restructuring, or organizational changes. It must comply with Singapore's Employment Act, Tripartite Guidelines on Managing Excess Manpower, and relevant MOM regulations. The letter serves as official documentation of the termination, protecting both employer and employee interests by clearly stating termination terms, benefits, and obligations. It should be used when companies have followed proper selection criteria and consultation processes, and must include specific information required by Singapore law.

What sections should be included in a Downsizing Termination Letter?

1. Letter Header: Company letterhead, date, and employee details

2. Termination Statement: Clear statement of termination due to downsizing

3. Last Working Day: Specific date of employment termination

4. Notice Period: Details of notice period or payment in lieu

5. Final Payment Details: Breakdown of final salary, unused leave, and retrenchment benefits

6. Company Property: Instructions for returning company assets

What sections are optional to include in a Downsizing Termination Letter?

1. Outplacement Support: Details of any career transition assistance, used when company provides such support

2. Medical Benefits Extension: Information about extended medical coverage, if applicable

3. Reference Letter Offer: Mention of providing reference letters, if company policy allows

What schedules should be included in a Downsizing Termination Letter?

1. Benefits Calculation Sheet: Detailed breakdown of final payments and benefits

2. Exit Checklist: List of administrative tasks to complete before last day

3. Acknowledgment Form: For employee to sign and acknowledge receipt of letter

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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

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What is a Downsizing Termination Letter?

What sections should be included in a Downsizing Termination Letter?

What sections are optional to include in a Downsizing Termination Letter?

What schedules should be included in a Downsizing Termination Letter?

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