One-Stop HR Information Centre

<Date>

<Name>

<Designation>

<Department>

Dear <Name>

Mutual Separation Scheme

We refer to our earlier discussions on the mutually agreed separation arrangement, and your acceptance of the same. As such, your service with the Company will end on <date>.

It was on the basis of the above that we discussed with you, a mutually agreeable separation package that would help to cushion the effects of your release from employment.

We are therefore pleased to confirm that pursuant to the discussions and the computation worksheet presented to you on <date>, our agreement with you for a mutual separation from employment is as follows:

1. Your last day of employment with the Company will be on <date>;
2. That upon your mutually agreed separation from the Company, a payment of <number of> days basic salary for each completed year of service you have had with the Company will be paid to you. Payment of every incomplete year of service will be prorated;
3. Although you are given notice of the termination of your employment, you will be accorded with payment of <number of> month’s salary in lieu of notice nonetheless;
4. Your unutilised annual leave of <number of> days for the year 20xx will be cashed out;
5. That upon payment of the item 1-4 above, you will have no further claims against the Company and/or any other related companies in regard to your employment.

Please note that all payments stated above will be subject to personal income tax deductions.

Accordingly, subject to the above, your total entitlement as under the mutually agreed separation package will be <amount> (personal income tax will be borne by you [please refer to the Appendix  enclosed for a detailed calculation*]). This amount will constitute a full and final settlement of your separation from employment with the Company.

*to enclose the worked-out compensation.

We take this opportunity to thank you for your service with the Company and wish you well in your future endeavours.

Yours faithfully

<Company Name>

<Name>

<Designation>

____________________________________________________________

ACKNOWLEDGEMENT & ACCEPTANCE 

I ____________________ (NRIC No.: ____________________) confirm that I have carefully read and understood the contents of this letter.

I further understand and accept that my entitlement to the payments set out above is subject to the terms and conditions stated in this letter. I further confirm that my acceptance of payment based on the terms and conditions stated is in full and final settlement of all claims arising from my separation from employment including any claim for reinstatement under the relevant provision of the <local Act).

Signature: _______________          Date: _______________

Witnessed by:

Signature: _______________          Date: _______________

Name: