A Severance Package Letter is utilized when employment is terminated due to restructuring, redundancy, or mutual agreement in Singapore. The document details the comprehensive severance package, including monetary compensation, benefit continuations, and post-employment obligations. It must align with Singapore's employment laws, particularly the Employment Act and CPF requirements. The letter typically includes calculation methods for severance pay, treatment of outstanding leave, bonus entitlements, and continuing obligations regarding confidentiality and company property. This document serves as both a legal record and communication tool, ensuring clarity and compliance in employment termination.
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1. Opening and Date: Formal letter opening with date, employee details, and employee reference number
2. Termination Statement: Clear statement of employment termination, effective date, and reason if applicable
3. Severance Amount: Specific amount of severance payment, calculation method, and payment terms
4. Final Payment Details: Breakdown of final payment including salary, pro-rated bonuses, leave encashment
5. Benefits Information: Status of health insurance, other benefits and their continuation/termination dates
6. Company Property: Requirements and timeline for returning company property and equipment
7. Continuing Obligations: Ongoing confidentiality obligations and any applicable restrictive covenants
8. Acknowledgment: Space for employee signature acknowledging receipt and understanding
1. Outplacement Services: Details of career transition support services if provided by the company
2. Reference Letter: Terms and conditions regarding the provision of employment references
3. Non-Compete Provisions: Reminder of existing non-compete obligations and their duration
4. Tax Information: Special tax considerations and obligations for the severance payment
1. Schedule A - Payment Calculation: Detailed breakdown of severance payment calculation including all components
2. Schedule B - Benefits Summary: Comprehensive summary of all benefits and their post-termination status
3. Schedule C - Release Agreement: Legal release of claims against the company requiring separate signature
4. Schedule D - CPF Documentation: Required Central Provident Fund forms and notifications
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