Legal Templates
Early Termination Of Employment Contract

Early Termination Of Employment Contract for Singapore

Early Termination Of Employment Contract Template for Singapore

This document provides a formal framework for the early termination of an employment relationship in Singapore, complying with the Employment Act and relevant MOM guidelines. It outlines the terms and conditions of the termination, including notice periods, final payments, return of company property, and continuing obligations. The agreement ensures both parties' rights are protected while managing the termination process in accordance with Singapore employment law.

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What is a Early Termination Of Employment Contract?

The Early Termination of Employment Contract is utilized when either employer or employee wishes to end the employment relationship before its intended term in Singapore. This document is essential for ensuring compliance with Singapore's Employment Act and MOM regulations while protecting both parties' interests. It covers crucial elements including notice periods, final payments, confidentiality obligations, and the return of company property. The agreement is particularly important in situations involving restructuring, performance issues, or mutual separation agreements, providing clear documentation of the termination terms and helping prevent future disputes.

What sections should be included in a Early Termination Of Employment Contract?

1. Parties: Identification of employer and employee with full legal names and addresses

2. Background: Reference to original employment contract, current employment status, and mutual agreement to terminate early

3. Definitions: Key terms used tHRoughout the agreement including 'Termination Date', 'Final Payment', 'Company Property'

4. Termination Date: Specification of the agreed last day of employment and notice period details

5. Final Payment Terms: Details of salary, pro-rated bonuses, leave encashment, and other financial entitlements

6. Company Property: Obligations regarding return of all company assets, documents, and data

7. Confidentiality: Ongoing obligations to maintain confidentiality of company information

8. Signing Block: Execution provisions including date and signature spaces for both parties

What sections are optional to include in a Early Termination Of Employment Contract?

1. Garden Leave: Provisions for employee to serve notice period away from workplace while remaining on payroll

2. Non-Compete Clause: Restrictions on future employment with competitors for a specified period and geography

3. Reference Provision: Terms regarding the provision of employment references and agreed communication about departure

4. Release and Waiver: Mutual release of claims and waiver of rights to future legal action

What schedules should be included in a Early Termination Of Employment Contract?

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

2. Schedule 2: Company Property List: Itemized list of company assets and materials to be returned by employee

3. Schedule 3: Continuing Obligations: Specific obligations that survive termination including confidentiality and non-compete terms

4. Appendix A: Original Employment Contract: Copy of the original employment agreement for reference

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

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Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Termination of Contract

Sector

Employment

Cost

Free to use
Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering notice periods, salary matters, leave entitlements, employee rights protection, and statutory requirements for termination

Employment Claims Act 2016: Legislation covering dispute resolution procedures and salary-related claims in employment matters

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

Central Provident Fund Act: Legislation governing mandatory social security savings system, including CPF contributions and obligations during employment termination

Industrial Relations Act: Legislation governing industrial relations, particularly relevant if employee is covered by collective agreement or union-related considerations

Personal Data Protection Act 2012: Legislation governing the handling and protection of personal data, including employee information during and after employment

Notice Period Requirements: Statutory and contractual requirements for minimum notice periods or payment in lieu of notice

Leave Settlement: Calculation and settlement of unused leave entitlements upon early termination

Final Payment Terms: Arrangements for final salary payment, including pro-rated payments and outstanding benefits

Confidentiality Provisions: Terms regarding ongoing confidentiality obligations and protection of company information

Company Property: Requirements for return of company property and assets

Release and Waiver: Terms of mutual release and waiver of claims between employer and employee

Restrictive Covenants: Non-compete and non-solicitation provisions if applicable to the termination

Tax Considerations: Tax implications and obligations related to termination payments and benefits

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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