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Severance Negotiation Letter

Severance Negotiation Letter Template for Singapore

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Severance Negotiation Letter

"Need a Severance Negotiation Letter for a senior software engineer in Singapore with 8 years of service, including non-compete provisions and stock option treatment, with planned termination date of March 15, 2025."

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Document background
The Severance Negotiation Letter is used when employment relationship is being terminated through mutual agreement or restructuring in Singapore. It initiates or continues the negotiation process for separation terms, ensuring compliance with local employment laws and MOM guidelines. The document typically follows preliminary discussions and presents a formal offer of severance terms, including financial compensation, benefit treatment, and transitional arrangements. It serves as a critical tool in managing workforce changes while maintaining legal compliance and professional relationships.
Suggested Sections

1. Opening Statement: Reference to previous discussions and purpose of letter

2. Last Day of Employment: Clear statement of termination date and final working day

3. Severance Payment: Detailed breakdown of severance package components including calculation method

4. Statutory Entitlements: Notice period, unused leave, pro-rated bonuses and other statutory requirements

5. CPF Treatment: Handling of CPF contributions and obligations

6. Tax Considerations: Tax treatment of severance payments and reporting obligations

7. Return of Company Property: Requirements and timeline for returning company assets and documents

8. Confidentiality Obligations: Ongoing duties regarding confidential information

9. Signature Block: Space for acknowledgment and acceptance of terms

Optional Sections

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

2. Outplacement Support: Details of career transition assistance services offered by the company

3. Reference Letter: Terms and conditions of employment reference provision

4. Healthcare Benefits Continuation: Details of any extended medical coverage or insurance conversion options

5. Stock Options/RSUs: Treatment of outstanding equity compensation

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation including base pay, bonuses, and other components

2. Schedule B - Benefits Summary: Comprehensive summary of continuing benefits or benefit conversions

3. Schedule C - Release Agreement: Legal release of claims against employer

4. Schedule D - Company Property Checklist: List of company assets and documents to be returned

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




















Clauses























Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering termination provisions, mandatory minimum benefits, notice periods, unused leave treatment, and salary payment obligations

Central Provident Fund Act: Legislation governing Singapore's social security system, specifically addressing CPF contributions requirements and treatment during employment termination

Income Tax Act: Tax legislation relevant to severance payments, including taxation requirements and reporting obligations for termination benefits

MOM Tripartite Guidelines: Ministry of Manpower guidelines covering fair employment practices, managing excess manpower, and retrenchment benefits recommendations

Personal Data Protection Act 2012: Legislation governing the handling and protection of personal data, including requirements for maintaining employee information confidentiality during termination

Employment Claims Act 2016: Framework for employment dispute resolution and statutory limits on claims related to employment termination

Industrial Relations Act: Legislation governing industrial relations, particularly relevant if employee is covered by collective agreements or requires union involvement

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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