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Employee Indemnification Agreement

Employee Indemnification Agreement for Singapore

Employee Indemnification Agreement Template for Singapore

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Employee Indemnification Agreement

"Need an Employee Indemnification Agreement for our Singapore-based fintech startup's new Chief Technology Officer, with specific coverage for cyber security incidents and regulatory investigations, to be effective from March 2025."

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What is a Employee Indemnification Agreement?

An Employee Indemnification Agreement is essential in Singapore's corporate environment where employees, particularly senior staff, may face personal liability risks in performing their duties. This document, governed by Singapore law, provides crucial protection by detailing when and how the company will defend and compensate employees for losses arising from their work activities. It specifies claim procedures, exclusions, and often includes provisions for advance payment of legal costs. The agreement must comply with Singapore's Companies Act, Employment Act, and related corporate governance requirements.

What sections should be included in a Employee Indemnification Agreement?

1. Parties: Identifies the company and employee being indemnified

2. Background: States the context and purpose of the indemnification

3. Definitions: Defines key terms including 'Indemnified Events', 'Losses', 'Claims'

4. Scope of Indemnification: Details what events and losses are covered by the agreement

5. Exclusions: Specifies what is not covered by the indemnification

6. Procedure for Claims: Process for making and handling indemnification claims

7. Duration: Period of coverage and survival provisions

What sections are optional to include in a Employee Indemnification Agreement?

1. Insurance Provisions: Details the relationship with D&O insurance and other insurance matters when company maintains D&O insurance

2. Advance Payment Provisions: Terms and conditions for advance payment of legal costs when company agrees to advance defense costs

3. Change in Control: Provisions dealing with the effect of corporate changes on indemnification, typically used for senior executives

What schedules should be included in a Employee Indemnification Agreement?

1. Schedule 1 - Schedule of Covered Positions: Comprehensive list of roles and responsibilities covered under the indemnification

2. Schedule 2 - Claims Procedure: Detailed step-by-step process for making and handling claims

3. Schedule 3 - Insurance Details: Summary of relevant insurance policies and their relationship to the indemnification

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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alex.den.21@genieai.co
Industries

Companies Act (Cap. 50): Key legislation governing corporate indemnification, particularly Section 172 regarding indemnification of officers and provisions relating to directors' and officers' duties and liabilities

Employment Act (Cap. 91): Primary legislation governing employment relationships in Singapore, covering basic employment rights and obligations that may affect the scope of indemnification

Securities and Futures Act (Cap. 289): Relevant for listed companies on SGX, containing provisions relating to corporate liability and disclosure obligations

Personal Data Protection Act 2012 (PDPA): Legislation governing protection of personal data and data breach responsibilities that may affect indemnification obligations

Prevention of Corruption Act (Cap. 241): Anti-corruption legislation defining corporate liability for corrupt practices and related indemnification limitations

Indemnification Limitations: Legal restrictions preventing indemnification against willful misconduct, criminal acts, and breaches of fiduciary duty

Scope of Coverage: Essential elements of coverage including legal costs and expenses, civil/criminal/regulatory proceedings, and advance payment provisions

Insurance Considerations: Relationship between indemnification and insurance, particularly D&O insurance coverage and coordination

Common Law Principles: Fundamental legal principles including duty of care, fiduciary duties, and reasonableness standards that affect indemnification

Corporate Governance Requirements: Compliance with SGX listing rules (if applicable) and corporate governance code requirements affecting indemnification provisions

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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