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Novation Employment Contract

Novation Employment Contract for Singapore

Novation Employment Contract Template for Singapore

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What is a Novation Employment Contract?

The Novation Employment Contract is essential in situations involving corporate restructuring, mergers, acquisitions, or business transfers in Singapore. This document, governed by Singapore law, ensures smooth transition of employment relationships while protecting all parties' interests. It specifies the transfer of rights, obligations, and benefits from the original employer to the new employer, maintaining employment continuity and compliance with local employment regulations. The contract addresses key aspects such as CPF contributions, leave entitlements, and service recognition, making it crucial for business transitions under Singapore's legal framework.

What sections should be included in a Novation Employment Contract?

1. Parties: Identifies and defines the Original Employer, New Employer, and Employee involved in the novation

2. Background: Sets out the context of the existing employment relationship and reason for novation

3. Definitions: Defines key terms used throughout the agreement including Effective Date, Original Contract, and Employment Terms

4. Transfer of Rights and Obligations: Core novation provisions detailing the transfer of employment relationship from Original to New Employer

5. Effective Date: Specifies when the transfer of employment takes effect and conditions precedent if any

6. Continuity of Employment: Confirms continuation of service period and preservation of existing employment terms

7. Release of Original Employer: Details the discharge of Original Employer's obligations and employee's acceptance

8. CPF and Statutory Contributions: Addresses transfer of CPF obligations and other statutory payments

9. Governing Law: Specifies Singapore law as governing law and jurisdiction

What sections are optional to include in a Novation Employment Contract?

1. Foreign Employment Provisions: Additional provisions required for foreign employees including work pass arrangements

2. Union Recognition: Provisions for transfer of union relationships and collective agreements where applicable

3. Intellectual Property: Transfer of IP rights and obligations for roles involving IP creation

4. Non-Competition and Confidentiality: Transfer of existing restrictive covenants and confidentiality obligations

What schedules should be included in a Novation Employment Contract?

1. Schedule 1 - Original Employment Terms: Copy or summary of existing employment contract terms being transferred

2. Schedule 2 - Employee Benefits: Detailed list of all benefits, entitlements, and accrued rights being transferred

3. Schedule 3 - Outstanding Obligations: List of any pending claims, accrued leave, or other outstanding obligations

4. Appendix A - Consent Forms: Required forms for employee consent to personal data transfer and processing

Authors

Alex Denne

Head of Growth (Open Source Law) @ ΊμΠΣΦ±²₯ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























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Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore, covering basic terms and working conditions, salary protection, working hours, rest days, leave entitlements, and notice periods

Central Provident Fund Act: Regulates mandatory social security savings system, including employer and employee contributions and related obligations

Contract Law (Common Law): Fundamental principles governing contract formation, novation requirements, and consideration aspects in Singapore's common law system

Employment of Foreign Manpower Act: Legislation governing the employment of foreign workers, including work pass requirements and employer obligations

Personal Data Protection Act 2012: Regulates collection, use, and disclosure of personal data, including employee information and consent requirements

Workplace Safety and Health Act: Establishes standards for workplace safety and health, including employer obligations and employee protection measures

Industrial Relations Act: Governs relations between employers and trade unions, including collective bargaining and dispute reΊμΠΣΦ±²₯

Income Tax Act: Regulates taxation matters including employer obligations for employee income reporting and tax deductions

Tripartite Guidelines: Non-legislative guidelines on fair employment practices issued by MOM, NTUC and SNEF, which are considered best practices in Singapore

MOM Regulations: Various regulatory requirements and directives issued by the Ministry of Manpower for employment relationships

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, Β Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, Β Severance Pay, Governing Law, Entire Agreemen

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