The Employee Severance Letter is a crucial document used when employment relationships are terminated in Singapore, whether through redundancy, restructuring, or other circumstances. It must align with Singapore's Employment Act and MOM guidelines, providing clear documentation of the termination terms, severance package, and final settlements. This document helps ensure compliance with local employment laws while protecting both employer and employee interests. The Employee Severance Letter typically includes payment terms, benefit arrangements, and any continuing obligations, serving as a definitive record of the separation agreement.
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1. Date and Address Block: Formal letter heading with date and employee's details
2. Termination Statement: Clear statement of employment termination and effective date
3. Severance Payment Details: Breakdown of severance package and payment terms
4. Final Salary and Benefits: Details of final salary, unused leave, and other benefits
5. Return of Company Property: Instructions for returning company assets and materials
6. Signature Blocks: Space for both employer and employee signatures
1. Non-Compete Clause: Restrictions on future employment with competitors - used for senior positions or roles with access to sensitive information
2. Reference Letter Offer: Statement regarding provision of employment references - included when company policy allows for references
3. Outplacement Services: Details of career transition support - included when company provides such services
4. Healthcare Extension: Information about continued medical coverage - included when offering extended health benefits
1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation
2. Schedule B - Benefits Summary: List of final benefits and their treatment
3. Schedule C - Company Property Checklist: Itemized list of company property to be returned
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