Separation Letter Template for Singapore

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Key Requirements PROMPT example:

Separation Letter

"I need a Separation Letter for a senior software engineer who is leaving our Singapore tech company voluntarily, with their last day being March 15, 2025, including standard confidentiality provisions and details about their outstanding stock options."

What is a Separation Letter?

The Separation Letter is a crucial document in Singapore's employment landscape, used when employment relationships are terminated either by mutual agreement, resignation, or employer-initiated separation. This document must align with Singapore's Employment Act and related employment legislation, ensuring compliance with statutory requirements such as notice periods, CPF contributions, and final payment calculations. A well-drafted Separation Letter helps prevent future disputes by clearly documenting the terms of separation, including final payments, benefit arrangements, and ongoing obligations such as confidentiality requirements. It serves as both a legal record and a practical guide for both parties during the transition period.

What sections should be included in a Separation Letter?

1. Date and Address Block: Current date and employee's full name and address

2. Separation Details: Last day of employment and reason for separation

3. Financial Terms: Final salary, unused leave, prorated bonuses, and other payments including CPF obligations

4. Return of Company Property: List of items to be returned and deadline

5. Confidentiality Obligations: Reminder of ongoing confidentiality duties and data protection obligations

6. Acknowledgment: Space for employee signature and date

What sections are optional to include in a Separation Letter?

1. Reference Letter: Terms regarding provision of employment references, used when agreed upon

2. Non-Compete Reminder: If existing employment contract contains non-compete clauses

3. Outplacement Support: If company provides career transition assistance

4. Medical Benefits Extension: If continuing medical coverage is offered

5. Union Consultation: Required if employee is a union member under Industrial Relations Act

What schedules should be included in a Separation Letter?

1. Final Payment Calculation: Detailed breakdown of all final payments including salary, bonuses, and leave encashment

2. Benefits Summary: Summary of benefit conversions or continuations post-employment

3. Company Property Checklist: Itemized list of company assets to be returned

4. Exit Interview Form: Standard form for exit interview process and feedback

5. Statutory Declaration: If required for tax clearance purposes, especially for foreign employees

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

Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. Covers notice period requirements, salary and leave payment obligations, termination procedures, and extends coverage to all employees as per 2019 amendments.

Central Provident Fund Act (Chapter 36): Regulates mandatory social security savings system including CPF contribution obligations and settlement of outstanding CPF payments during employment separation.

Industrial Relations Act (Chapter 136): Governs industrial relations between employers and trade unions, including requirements for union members and collective agreement compliance during separation.

Employment Claims Act 2016: Establishes framework for employment dispute resolution and statutory limitations for claims related to employment termination.

Personal Data Protection Act 2012: Regulates the handling and protection of personal data, including requirements for employee data handling and retention during and after separation.

Income Tax Act: Governs tax obligations including tax clearance for foreign employees and treatment of termination benefits and payments.

Retirement and Re-employment Act: Specifies obligations regarding retirement and re-employment, particularly for employees above 62 years old.

Work Injury Compensation Act: Covers work injury compensation claims and settlement of work-related medical expenses during separation.

MOM Guidelines: Ministry of Manpower guidelines covering fair employment practices, management of excess manpower, and wrongful dismissal procedures.

TAFEP Guidelines: Tripartite Alliance for Fair and Progressive Employment Practices guidelines ensuring fair termination and non-discriminatory practices during separation.

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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