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.
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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
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
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
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