Employment Settlement Agreement for Singapore

Employment Settlement Agreement Template for Singapore

A legally binding document governed by Singapore law that formalizes the terms of separation between an employer and employee, including settlement payments, mutual releases, and post-employment obligations. The agreement complies with Singapore's Employment Act and related legislation, providing clarity on settlement terms while protecting both parties' interests through confidentiality provisions, tax considerations, and clearly defined obligations.

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What is a Employment Settlement Agreement?

An Employment Settlement Agreement is utilized in Singapore when an employer and employee agree to formally terminate their employment relationship on mutually agreed terms. This document is particularly important in situations involving senior executives, redundancies, or dispute resolutions. The agreement, governed by Singapore employment law, typically includes settlement payments, tax considerations, confidentiality provisions, and mutual releases of claims. It provides legal certainty and protection for both parties while ensuring compliance with Singapore's employment legislation and regulatory requirements.

What sections should be included in a Employment Settlement Agreement?

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

2. Background: Brief history of employment relationship and circumstances leading to settlement

3. Definitions: Key terms used throughout the agreement

4. Settlement Terms: Details of settlement payment and other financial considerations

5. Release of Claims: Mutual release of all claims related to employment

6. Confidentiality: Terms regarding confidentiality of settlement and company information

7. Tax Implications: Statement on tax treatment of settlement payments

What sections are optional to include in a Employment Settlement Agreement?

1. Non-Compete Provisions: Restrictions on future employment - used for senior employees or those with access to sensitive information

2. Reference Provision: Terms regarding future employment references - included when agreed as part of settlement negotiations

3. Return of Property: Process for returning company property - included when employee has company equipment or materials

4. Continuing Obligations: Ongoing obligations post-termination - used when certain employment contract terms survive termination

What schedules should be included in a Employment Settlement Agreement?

1. Schedule 1: Settlement Payment Details: Breakdown of settlement sum and payment schedule

2. Schedule 2: Company Property List: Inventory of company property to be returned

3. Appendix A: Original Employment Contract: Reference copy of employment agreement being terminated

4. Appendix B: Form of Release: Standard release form to be signed by employee

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

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Industries

Employment Act (Cap. 91): Primary legislation governing employment relationships in Singapore, covering basic terms of employment, rights, duties and responsibilities of employers and employees

Employment Claims Act 2016: Framework for resolving salary-related disputes and wrongful dismissal claims, establishes jurisdiction of Employment Claims Tribunal

Retirement and Re-employment Act: Legislation covering retirement age, re-employment obligations and related provisions for older workers

Central Provident Fund Act: Governs mandatory social security savings system, including employer contributions and treatment of payments in settlements

Tripartite Guidelines on Fair Employment Practices: Guidelines ensuring fair treatment in employment practices, including termination and settlement procedures

Tripartite Guidelines on Wrongful Dismissal: Specific guidelines on what constitutes wrongful dismissal and appropriate remedies

Workplace Safety and Health Act: Legislation ensuring workplace safety and health standards, relevant for settlements involving workplace incidents

Personal Data Protection Act 2012: Governs collection, use, and disclosure of personal data, important for confidentiality clauses in settlement agreements

Income Tax Act: Tax implications and treatment of settlement payments and benefits

Contract Law (Common Law): General principles of contract law applying to settlement agreements, including formation, consideration, and enforceability

Unfair Contract Terms Act: Regulates unfair terms in contracts, ensuring settlement terms are reasonable and enforceable

Mediation Act 2017: Framework for mediation processes, relevant for dispute resolution provisions 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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