Termination Without Cause Contract for Singapore

Termination Without Cause Contract Template for Singapore

A Termination Without Cause Contract under Singapore law is a formal agreement documenting the end of employment where the termination is not due to employee misconduct or performance issues. It outlines the terms of separation, including notice periods, final payments, and post-employment obligations, while ensuring compliance with Singapore's Employment Act and related legislation. The document provides legal protection for both employer and employee by clearly stating separation terms and mutual releases.

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What is a Termination Without Cause Contract?

The Termination Without Cause Contract is used in Singapore when an employer wishes to end an employment relationship for reasons unrelated to employee performance or conduct. This document ensures compliance with Singapore's employment laws while protecting both parties' interests. It typically includes notice periods as required by the Employment Act, final payment calculations including unused leave and pro-rated bonuses, CPF considerations, and any additional benefits or severance packages. The agreement also addresses post-employment obligations such as confidentiality and company property return, while providing clarity on final settlements and mutual releases.

What sections should be included in a Termination Without Cause Contract?

1. Parties: Identification of employer and employee

2. Background: Context of employment relationship and reason for termination

3. Definitions: Key terms used in the agreement

4. Effective Date: Specifies when the termination takes effect

5. Notice Period: Details of notice period or payment in lieu

6. Final Payment Terms: Breakdown of final salary, benefits, and other payments

7. Company Property: Requirements for return of company assets

8. Confidentiality: Ongoing confidentiality obligations

What sections are optional to include in a Termination Without Cause Contract?

1. Severance Package: Additional compensation beyond statutory requirements - used when offering enhanced termination benefits

2. Reference Letter: Terms regarding provision of references - included when agreed as part of termination package

3. Non-Compete: Post-employment competition restrictions - used for senior employees or when protecting business interests

4. Outplacement Support: Career transition assistance - included when providing additional support services

What schedules should be included in a Termination Without Cause Contract?

1. Schedule 1: Payment Calculation: Detailed breakdown of final payment amounts

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

3. Schedule 3: Benefits Summary: Overview of benefit termination dates and conversion options

4. Appendix A: Release of Claims: Legal waiver of potential claims

5. Appendix B: Reference Letter Template: Agreed format and content of reference letter if applicable

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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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Technology
Financial Services
Manufacturing
Professional Services
Retail

Relevant Teams

Human Resources
Legal
Finance
Operations
Compliance

Relevant Roles

Human Resources Director
Legal Counsel
Department Manager
Chief Executive Officer
Employee Relations Manager

Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering minimum notice periods, salary payment obligations, leave and benefits settlement, and key employment terms that must be addressed in termination

Employment Claims Act 2016: Legislation governing dispute resolution procedures and statutory limits for employment-related claims in Singapore

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

Industrial Relations Act: Legislation governing union relationships and collective agreement requirements for termination of unionized employees

Central Provident Fund Act: Legislation governing CPF contribution settlements and final payment obligations during employment termination

Personal Data Protection Act 2012: Legislation governing the handling of employee personal data, including data retention and deletion requirements post-termination

Notice Period Requirements: Contractual and statutory requirements for notice periods in termination without cause

Severance Payment: Calculation and implementation of severance payments, including any statutory requirements or industry standards

Benefits Settlement: Process for settling outstanding benefits including annual leave, medical benefits, and other contractual benefits

Confidentiality Obligations: Post-termination confidentiality requirements and handling of sensitive information

Company Property: Requirements and procedures for the return of company property including equipment, documents, and intellectual property

Non-compete/Non-solicitation: Post-termination restrictions on competition and solicitation of employees or customers

Final Settlement: Process and requirements for final settlement of all employment-related matters including final payments

Tax Implications: Tax considerations and obligations related to termination payments and benefits

Release of Claims: Terms and conditions for mutual release of claims between employer and employee

Post-termination Obligations: Ongoing obligations of both parties after the termination takes effect

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What is a Termination Without Cause Contract?

What sections should be included in a Termination Without Cause Contract?

What sections are optional to include in a Termination Without Cause Contract?

What schedules should be included in a Termination Without Cause Contract?

Authors

Alex Denne

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