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Contrato de trabajo y liquidación final en Argentina: lo que el empleador no siempre te dice en 2026

Forms Legal — Sat, 27 Jun 2026 15:30:03 +0000

El último día de trabajo llegó, firmás el papel que te presentan y cobrás lo que te pagan. Después, con la plata ya gastada, un colega te dice: "¿Recibiste el proporcional de vacaciones no gozadas?" Y ahí empieza el problema. La liquidación final es uno de los rubros donde más diferencias injustificadas aparecen, porque la mayoría de los trabajadores no sabe exactamente qué les corresponde.

La Ley de Contrato de Trabajo 20.744 —la LCT— regula cada centavo de esa liquidación, pero el diablo está en los detalles. Veamos qué integra la liquidación al concluir un contrato de trabajo, sea por renuncia, acuerdo o despido.

El salario del mes en curso es lo primero: los días trabajados hasta la extinción, calculados sobre el sueldo mensual dividido por 25 si el convenio no dice otra cosa, o sobre los días hábiles según la práctica del empleador. Ninguna empresa puede retener eso.

Luego viene el sueldo anual complementario proporcional (SAC, popularmente "aguinaldo"). El artículo 122 de la LCT establece que el SAC se paga en dos cuotas —junio y diciembre— pero al desvincularse se liquida la parte proporcional del semestre en curso. Si renunciás en marzo, te corresponde el SAC de enero, febrero y marzo. La fórmula es sencilla: mitad del mejor sueldo del semestre dividido por 6, multiplicado por los meses proporcionales. Muchos empleadores lo calculan sobre el sueldo base y olvidan las horas extra habituales o los tickets canasta que integran remuneración; eso es un error que puede reclamarse.

Las vacaciones proporcionales no gozadas también se liquidan siempre, sin importar la causa de egreso. El artículo 156 LCT es claro: al momento de la extinción, el trabajador tiene derecho a percibir una indemnización equivalente al salario correspondiente al período de vacaciones que le hubiere correspondido ese año, en proporción a los meses trabajados. Si el trabajador tiene entre 5 y 10 años de antigüedad, le corresponden 21 días hábiles de vacaciones anuales; si llevaba, digamos, 8 meses del año trabajados, recibirá 8/12 de esos 21 días. Un detalle que se pasa por alto: los días de vacaciones se calculan en días hábiles, pero la remuneración diaria se obtiene dividiendo el sueldo mensual por 25.

El preaviso merece un párrafo aparte. Si el empleador no otorgó el plazo de preaviso establecido en el artículo 231 LCT —15 días para personal con menos de 3 meses, 30 días de uno a cinco años, 60 días con más de cinco años— debe abonar la indemnización sustitutiva. Eso incluye el SAC proporcional sobre ese período de preaviso. Cuando la empresa le dice al trabajador "ya podés irte" sin respetar el plazo, el preaviso se integra en la liquidación como un rubro indemnizatorio.

Acá quiero detenerme en algo que veo repetidamente: la empresa hace firmar el recibo de haberes final con la leyenda "nada más me adeuda". ¿Eso cierra el reclamo? Depende. Si el trabajador firmó bajo presión, en el mismo momento del despido, sin tiempo para verificar los montos, hay doctrina y jurisprudencia que sostiene que esa conformidad no es válida como finiquito si los rubros no se calcularon correctamente. En cambio, un acuerdo homologado ante el Ministerio de Trabajo sí tiene efecto liberatorio pleno, según el artículo 15 LCT. La diferencia no es menor.

¿Qué pasa con los conceptos no remunerativos? Varios convenios colectivos establecen sumas "no remunerativas" o "en negro" que muchos empleadores no incluyen en la base de cálculo del SAC ni de la liquidación final. La Corte Suprema de Justicia de la Nación viene fallando reiteradamente que esas cláusulas son inconstitucionales cuando el concepto tiene carácter contraprestativo. En otras palabras: si te lo pagan todos los meses por trabajar, es remuneración, independientemente del nombre que le ponga el convenio. Incluirlo en la base cambia los números.

La plantilla de liquidación final debe detallar cada rubro por separado. Un recibo que diga sólo "liquidación final $X" sin abrir los conceptos es una señal de alerta. El trabajador tiene derecho a pedir el detalle, y si la empresa no lo brinda, puede recurrir al Servicio de Conciliación Laboral Obligatoria (SECLO) en CABA, o a las delegaciones del Ministerio de Trabajo en las provincias, antes de iniciar un juicio laboral.

¿Cómo se calcula la remuneración diaria para las vacaciones? Muchos empleadores toman el sueldo mensual y lo dividen por 30, que parece lógico. Pero el artículo 155 LCT ordena dividir por 25. La diferencia parece menor —un 17%— pero sobre un sueldo medio aplicado a 15 o 20 días de vacaciones proporcionales, puede ser miles de pesos. Vale la pena hacer el cálculo de las dos maneras antes de firmar el recibo.

Un tema que se volvió relevante con la inflación alta: los intereses sobre las sumas adeudadas. Si el empleador demora el pago de la liquidación final más allá del plazo legal, se generan intereses moratorios. La tasa que aplican los tribunales laborales en Argentina es la activa del Banco de la Nación Argentina desde el fallo plenario "Calcagno" de la Cámara Nacional de Apelaciones del Trabajo. Con inflación persistente, el monto de los intereses puede igualar o superar el capital original si el reclamo se resuelve años después.

El plazo para impugnar no es indefinido. El artículo 256 LCT fija una prescripción de dos años para los créditos laborales. El plazo corre desde que el crédito se tornó exigible —generalmente, la fecha de extinción del contrato. No esperes: si creés que tu liquidación está mal calculada, consultá a un abogado laboralista cuanto antes.

Una aclaración práctica sobre las multas: si el empleador no abona la liquidación final dentro de los cuatro días hábiles de extinguido el contrato (artículo 128 LCT y la ley 25.013 en lo pertinente), el trabajador puede reclamar la mora. El artículo 2 de la ley 25.323 establece una duplicación de la indemnización por despido cuando el empleador, fehacientemente intimado, no la abona. Aunque esa duplicación aplica principalmente en despidos, la demora en la liquidación final puede generar intereses y costas en un proceso judicial.

Para quienes están en ese momento de transición laboral y quieren verificar sus cuentas antes de firmar, en https://forms-legal.com/es/argentina/ encontrarán modelos de recibo de liquidación final y documentos de extinción del contrato de trabajo que pueden usar como referencia para corroborar que los rubros están completos.

¿Renuncia o acuerdo rescisorio? Esta elección también impacta en la liquidación. La renuncia no genera derecho a indemnización por antigüedad ni sustitutiva de preaviso. El acuerdo rescisorio del artículo 241 LCT, en cambio, puede negociarse con condiciones distintas, incluyendo el pago de una suma voluntaria que, si se homologa, no tributa aportes ni contribuciones en la proporción indemnizatoria. Muchos trabajadores renuncian sin saber que podían negociar un acuerdo mejor.

¿Qué dice el recibo tiene que decir? El recibo de pago de la liquidación final debe discriminar, como mínimo: período liquidado, remuneración base, horas extra, SAC proporcional, vacaciones proporcionales, preaviso —si corresponde— y los descuentos de aportes previsionales y de obra social aplicados sobre los rubros remunerativos. Los rubros indemnizatorios no llevan aportes ni retenciones de impuesto a las ganancias en la proporción legal. Si el recibo no discrimina y mezcla todo como "liquidación final", la empresa está incumpliendo el artículo 140 LCT, que exige la especificación de los rubros en el recibo de haberes.

Hay otro punto que pocas personas conocen: si el trabajador no retiró el certificado de trabajo y el certificado de aportes y contribuciones (artículo 80 LCT) dentro del plazo, puede intimar al empleador. Ante la negativa o la demora injustificada, procede una indemnización adicional equivalente a tres salarios. Esos certificados son necesarios para acreditar la antigüedad ante futuros empleadores y para gestionar beneficios previsionales.

El contrato de trabajo en Argentina es, en su médula, un contrato protectorio. La LCT parte del principio de que hay una desigualdad estructural entre empleador y empleado, y por eso establece normas de orden público que no pueden ser renunciadas. La liquidación final es el último eslabón de esa protección. Conocerla no te convierte en litigante, te convierte en alguien que sabe lo que firmó.

Why Your Will Needs a Codicil Like Your Code Needs a PR – Not a Full Rebuild

Forms Legal — Thu, 25 Jun 2026 07:30:13 +0000

TL;DR: Skip rewriting your entire will for small tweaks, a codicil is your estate's hotfix. But mess up the 'merge' (like invalid witnesses) and your executors get a production-level bug. As a dev who patched my will after inheriting crypto, here's how I avoided probate hell without a lawyer. Never assume 'just a signature' is safe.

Your Will Is Legacy Code (And That's Okay)

My grandad left me a cold Bitcoin wallet. His 1998 will named "my son's children" as residuary beneficiaries. Problem: I'm the only son, but my kids weren't born until 2010. Rewriting his entire will felt like refactoring spaghetti COBOL for a one-line config change.

Codicils exist for this exact scenario. They're pull requests for your estate plan, targeted patches instead of full rebuilds. Under the Wills Act 1837, you can surgically update beneficiaries or executors without nuking your original document.

Most devs accept small PRs faster than massive refactor PRs. Same with probate courts. Executors process clean codicils quicker than entirely new wills. But skip the witness requirements? That's like merging without CI checks. Disaster guaranteed.

Codicil = Pull Request Checklist

Think of your codicil as a feature branch. Section 9 of the Wills Act 1837 defines the mandatory merge criteria:

Signed by you (the testator) Like committing your changes locally.
Two witnesses present simultaneously Non-negotiable code review. Both must watch you sign at the same time. ⚠️ Biggest failure point: Witnesses signing separately like async code reviews. Invalidates everything.
Witnesses attest in your presence They confirm "yes, this is your signature", no need to understand the clauses.

I added my crypto wallet address via codicil last year. Used two coworkers as witnesses. Made them watch me sign together, no "I'll sign later" nonsense. Broke one coffee run to get them both in the room. Worth it.

Real dev analogy: Invalid witnesses = deploying with broken CI checks because "it worked locally." Probate registry rejects your "PR" outright. Your changes vanish. Family fights over legacy code (I mean, assets).

When Not to Merge: 3 Scenarios Where Codicils Cause Merge Conflicts

Codicils fail when your estate's architecture shifts. Don't force a patch where you need a rebuild:

Multiple changes Trying to cram 5 beneficiary swaps into one codicil? That's like one PR fixing 10 unrelated bugs. Messy. High chance of conflicts. If you need over two tweaks, scrap the codicil. Draft a new will. The Administration of Estates Act 1925 hates ambiguity, partial intestacy crashes your deployment.
Divorce or marriage Section 18 of the Wills Act 1837 revokes wills on marriage. A codicil can't resurrect this. Section 18A (via Law Reform Act 1995) voids ex-spouse gifts post-divorce but leaves executor chaos. Rebuild the will. Don't risk a merge conflict where your ex still "owns" executor rights.
Residuary estate changes Tweaking "everything else" clauses? Dangerous. One typo = partial intestacy. Administering residual assets under Intestacy Rules (Administration of Estates Act 1925) is like running untested legacy code. New will only.

Storing Your Patch Safely

git commit -m "added BTC wallet" won't cut it for probate. HM Courts and Tribunals Service demand physical originals.

Store your codicil taped to your original will. Not in a different drawer. Not "somewhere safe."

My near-disaster: I kept the codicil in my desk, will in a fireproof box. When my uncle died, his executor spent 3 weeks hunting the codicil. Almost missed the probate deadline. Now I use Certainty (National Will Register), it's like GitHub Repositories for estate docs. Free registration.

Photocopies? Rejected. Probate needs wet ink signatures witnessed live. No cloud storage substitutes. Treat it like your master private key.

DIY Codicil Trap: Free Templates That Work (and Ones That Nuke Your Repo)

I tested 7 free codicil templates. Four were time bombs:

The "I change everything" template Vague phrases like "I alter prior provisions." Ambiguous. Probate courts treat this like undefined variables, they ignore it. Stick to specific clauses: "Replace Section 3.1 beneficiary from [Name] to [Crypto Wallet Address]."
The "witness exemption" template Claims "digital signatures accepted." False. Section 9 demands physical witnesses. Always.
The "unregistered" template Omits your will date. Critical. Codicils must cite "the will dated [X]." Otherwise, executors can't link them. Like a PR without a base branch.

Use only templates matching Section 9 requirements. The one I used from forms-legal.com had:

"This codicil amends my will dated [DATE], specifically altering Clause [NUMBER] to read: [EXACT TEXT]."

Clear. Patch-like. No fluff.

Your Executor Is the Ops Team

Executors deploy your estate plan. Ambiguous clauses crash production.

My aunt's will said: "My son gets the house." Her son died before her. Who gets it? The will didn't name contingent beneficiaries. Result: 11 months of probate hell under Intestacy Rules. Assets frozen. Like ops trying to deploy config with missing env vars.

Fix this now:

Always name backup beneficiaries ("If [Name] predeceases me, [New Name] inherits").
Specify exactly which asset ("the Bitcoin wallet ending in ...a1b2c3").
Update executors if moving countries (Kenya's Succession Act handles foreign assets differently).

Never write "my cryptocurrency", specify chains, wallets, recovery methods. Assume your executor knows ls but not bitcoin-cli.

Why I Bothered Learning This

Lost $12k in Ethereum after my cousin's death. His DIY codicil had witnesses who were also beneficiaries (void under Section 15). Probate rejected it. Assets reverted to intestacy. His kids got nothing.

Codicils work when you treat them like production code:

Mandatory witness review
Atomic changes
Stored with original
Clear patch notes

Skip the ceremony, and you're handing executors a corrupted tarball. They'll spend months (and thousands) unpacking it.

Your move: Grab a verified codicil template. Patch your will. Store it physically with the original. Then sleep knowing your crypto won't vanish in probate.

Need a solid starting point? I used this codicil template for England and Wales. It nails Section 9 compliance without legalese.

legaltech #api #kenya

Related Resources

Browse the full library: UK Legal Templates

Free legal templates from Forms Legal:

Contrato de deportista profesional en España: claves legales del RD 1006/1985 (2026)

Forms Legal — Tue, 23 Jun 2026 06:42:01 +0000

El contrato de deportista profesional en España regula una relación laboral especial sometida al Real Decreto 1006/1985, de 26 de junio. Este real decreto establece las condiciones mínimas de contratación, los derechos y obligaciones de club y deportista, la duración máxima del vínculo y el régimen de extinción. Su correcta redacción es esencial para evitar conflictos costosos ante la Jurisdicción Social.

La relación laboral especial: qué es y por qué importa

El Real Decreto 1006/1985 define en su artículo 1 como deportista profesional a quien, a cambio de una retribución, practica el deporte por cuenta y dentro del ámbito de organización y dirección de un club o entidad deportiva. Esta relación no se rige por el Estatuto de los Trabajadores con carácter preferente: el RD 1006/1985 es la norma especial y el ET solo se aplica supletoriamente cuando la norma especial guarda silencio.

La calificación como relación laboral especial tiene consecuencias prácticas relevantes:

El deportista tiene protección laboral (Seguridad Social, prestaciones por desempleo, prevención de riesgos laborales).
El club asume deberes propios de empleador: cotización, afiliación, información sobre condiciones de trabajo.
Los conflictos se resuelven ante los Juzgados de lo Social, no ante los civiles o arbitrales deportivos (salvo que el convenio colectivo o el contrato contemplen árbitro específico).

Forma y duración del contrato

El artículo 4 del RD 1006/1985 exige que el contrato se formalice siempre por escrito. La ausencia de documento escrito no convierte la relación en laboral ordinaria, pero genera presunción a favor del deportista en caso de litigio.

Duración: el contrato puede ser por tiempo determinado o por tiempo indefinido. En la práctica deportiva profesional, la modalidad más frecuente es la de duración determinada, vinculada a temporadas. La duración máxima del contrato a plazo fijo no está limitada por el art. 15 ET en este ámbito especial; pueden pactarse contratos plurianuales sin que ello genere indefinición automática.

Período de prueba: el art. 11 del RD 1006/1985 permite pactarlo. Si no se fija expresamente, no existe. Una vez superado, el deportista accede a la protección plena frente al despido.

Cláusulas esenciales que debe contener el contrato

Un contrato de deportista profesional bien redactado debe incluir, como mínimo:

Identificación de las partes: nombre completo, NIF/NIE del deportista y denominación, CIF y domicilio del club.
Objeto y modalidad deportiva: la disciplina deportiva, la categoría y la competición en la que participará el deportista.
Retribución: el art. 8 del RD 1006/1985 garantiza un salario mínimo pactado en convenio colectivo; en su defecto, el SMI. Deben detallarse salario fijo, primas por rendimiento, plus de residencia, manutención y cualquier especie.
Duración y jornada: fechas de inicio y fin, calendario de concentraciones y desplazamientos, períodos de vacaciones (mínimo 30 días naturales al año según el art. 9 del RD).
Derechos de imagen: cláusula que regule quién explota y en qué condiciones la imagen del deportista con fines comerciales (véase apartado siguiente).
Cláusula de rescisión (cláusula de penalización): fijación de la cantidad indemnizatoria que el deportista deberá abonar al club si extingue unilateralmente el contrato antes del término pactado.
Derechos sobre fichajes y traspasos: cláusulas de prórroga opcional a favor del club, porcentajes de traspaso, opciones de compra.

Puede descargar un modelo de contrato de deportista profesional en forms-legal.com y adaptarlo a las necesidades de su club o agencia deportiva.

Derechos de imagen: un elemento crítico

El art. 7 bis del RD 1006/1985 (incorporado por la Ley Orgánica 1/1982 de Protección Civil del Derecho al Honor, en relación con la Ley del IRPF) reconoce que los rendimientos del trabajo incluyen los obtenidos por el deportista como consecuencia de su relación laboral. Sin embargo, cuando el deportista cede sus derechos de imagen a una sociedad, la Agencia Tributaria aplica la denominada "regla especial de imputación de rentas" del art. 92 de la Ley 35/2006 del IRPF: si el club paga a la sociedad más del 15 % de la retribución total, el exceso se imputa al deportista como rendimiento del trabajo.

Esto significa que la cláusula de imagen debe estar redactada con precisión y firmada como contrato separado de explotación de imagen, distinguiendo claramente la retribución laboral de los cánones por imagen. La confusión entre ambas puede generar liquidaciones tributarias e inspecciones laborales.

Extinción del contrato y cláusulas de rescisión

El régimen extintivo es uno de los aspectos más litigiosos del contrato deportivo:

Extinción por mutuo acuerdo (art. 13 RD 1006/1985): siempre posible; debe constar por escrito.
Despido disciplinario: el club puede despedir por causas del art. 54 ET (incumplimiento grave y culpable), con la especialidad de que la jurisprudencia laboral ha considerado indisciplina deportiva grave la negativa reiterada a entrenar.
Extinción por causas objetivas: aplicable supletoriamente según el ET si concurren causas económicas, técnicas u organizativas del club.
Dimisión del deportista: el deportista puede extinguir el contrato por voluntad propia, pero deberá abonar la indemnización pactada en la cláusula de rescisión, siempre que su cuantía no sea abusiva o desproporcionada. Los Tribunales del orden social han matizado que cláusulas de rescisión astronómicas pueden quedar moderadas judicialmente si el club no acredita perjuicio real.
Extinción por incumplimiento del club: si el club incumple sus obligaciones (p. ej., impago reiterado de salarios), el deportista puede instar la resolución del contrato con derecho a indemnización según el art. 50 ET, aplicable supletoriamente.

Seguridad Social y protección por desempleo

El deportista profesional cotiza al Régimen General de la Seguridad Social. La Resolución de la Tesorería General de la Seguridad Social fija el Grupo de Cotización 1 para deportistas. La cotización por contingencias comunes y profesionales corresponde al club como empleador, que retiene la cuota obrera del salario bruto.

Una especialidad relevante: conforme al Real Decreto 383/2000, el deportista profesional que agota su contrato temporal accede a la prestación por desempleo si cumple el período mínimo de cotización de 360 días en los últimos seis años. La prestación no se extingue por la incorporación a otro club si hay período de carencia suficiente.

Preguntas frecuentes

¿Puede un deportista amateur firmar un contrato bajo el RD 1006/1985?

No. El RD 1006/1985 exige que la práctica deportiva sea remunerada y dentro del ámbito de organización de un club. El deportista aficionado que no recibe retribución no está comprendido en esta norma especial; su vinculación con el club es de naturaleza federativa o asociativa, no laboral.

¿Qué convenio colectivo resulta aplicable?

Depende de la modalidad deportiva. Existe, por ejemplo, el Convenio Colectivo para la Actividad de Fútbol Profesional (entre LaLiga y AFE), el de baloncesto ACB o el de balonmano. Si no existe convenio sectorial aplicable, rige el RD 1006/1985 y, supletoriamente, el ET.

¿Qué ocurre si el club desciende de categoría durante la vigencia del contrato?

El descenso de categoría no extingue automáticamente el contrato. Sin embargo, muchos contratos incluyen cláusulas de resolución unilateral condicionadas al descenso. Si el contrato guarda silencio, el deportista puede instar la resolución por incumplimiento grave del club si el descenso supone una modificación sustancial de condiciones (salario, nivel competitivo pactado).

¿Es obligatorio inscribir el contrato en algún registro?

Los contratos de deportistas profesionales deben comunicarse al Servicio Público de Empleo Estatal (SEPE) mediante el sistema Contrat@ en el plazo de 10 días hábiles desde su firma, como cualquier otro contrato de trabajo en España.

The Oath of Executor in Ireland: What It Is and How Probate Works (2026)

Forms Legal — Sun, 21 Jun 2026 02:30:14 +0000

When someone dies in Ireland leaving a will, the executor named in that will must apply to the Probate Office for a Grant of Probate before they can legally deal with the estate. Central to that application is a sworn statement — historically called the Oath of Executor — confirming the will is genuine and the executor accepts their duties. Since 2020, this oath has been replaced by a Statement of Truth, but the role and responsibility remain identical.

What Is the Executor's Role Under the Succession Act 1965?

The legal framework for executors in Ireland comes from the Succession Act 1965, which governs how estates are administered after death. Under this Act, the executor is the person appointed by the deceased in their will to gather the assets of the estate, pay debts and taxes, and distribute the remainder to the beneficiaries.

The executor's authority flows from the will itself, but their power to deal with third parties — banks, the Land Registry, financial institutions — only becomes effective once the Probate Office issues a Grant of Probate. Until that grant is issued, the executor has no legal standing to access or transfer assets.

Key duties under the Succession Act 1965 include:

Locating the original will and verifying it is valid
Submitting an Inland Revenue Affidavit (Form CA24) to Revenue to account for inheritance tax
Applying to the Probate Office for the Grant of Probate
Distributing the estate in accordance with the will

The Statement of Truth: Replacing the Old Oath

Prior to reforms introduced under the Civil Law and Criminal Law (Miscellaneous Provisions) Act 2020, an executor applying for probate in Ireland was required to swear a formal oath before a solicitor or commissioner for oaths. This oath confirmed that the executor was the person named in the will, that the will was the last valid will of the deceased, and that the executor would faithfully administer the estate.

From 2020 onwards, that sworn oath was replaced by a Statement of Truth. The practical effect is the same — the executor makes a solemn written declaration to the Probate Office — but a formal religious oath is no longer required. The statement must still be signed in the presence of a solicitor, and making a false statement carries serious legal consequences under the Criminal Justice (Perjury and Related Offences) Act 2021.

For most applicants, the change is administrative. Whether you call it an oath or a statement, the executor is confirming the same facts and accepting the same legal responsibilities.

When Is a Grant of Probate Needed?

Not every estate requires a Grant of Probate. Whether one is needed depends on the nature and value of the assets involved.

A grant is typically required when:

The estate includes real property (land or a house) registered in the deceased's sole name
Financial institutions (banks, credit unions, investment firms) hold assets above their own internal thresholds — usually around €25,000, though this varies
Shares or other securities need to be transferred

A grant is generally not needed for jointly held assets that pass automatically by survivorship, or for small accounts where the institution accepts a simplified declaration. However, if there is any doubt, it is safer to obtain the grant, as it provides clear legal authority to act.

Applying to the Probate Office

The Probate Office is part of the High Court and is located at the Four Courts in Dublin, with District Probate Registries operating in Cork, Limerick, Galway and other county towns. Most straightforward applications are made through a local District Registry.

To apply, the executor (or their solicitor) must submit:

The original will (and any codicils)
The original death certificate
The completed Oath of Executor / Statement of Truth
The Inland Revenue Affidavit (CA24), submitted to Revenue first
The probate application form with the applicable filing fee

The CA24 form is filed with Revenue Commissioners before the Probate Office application. It declares the value of all assets and liabilities in the estate and calculates any Capital Acquisitions Tax (CAT) due. Revenue will stamp the affidavit once satisfied, and the stamped copy is then submitted to the Probate Office as part of the probate application.

Timelines and Costs

Processing times at the Probate Office vary. As of 2026, straightforward applications submitted directly (without a solicitor) may take four to six months from submission to grant issue. Applications submitted through a solicitor on the "solicitors' side" can be faster once all documents are in order, but this depends on the complexity of the estate and current Probate Office workloads.

The cost of obtaining a grant depends on the gross value of the estate. Under the current fee schedule, there is no fee for estates valued under €25,000. Above that threshold, fees are calculated on a sliding scale set by court rules. Solicitors' fees, if you use one, are charged separately and are typically based on the value of the estate — usually between 1% and 2% of the gross estate.

Executors can apply personally without a solicitor. The Probate Office provides guidance forms, though the paperwork can be complex where property or significant assets are involved.

You can download a free executor appointment template to document the executor's acceptance of the role and begin organising the estate administration process.

Common Problems Executors Face

The most frequent difficulty is locating the original will. A photocopy is not accepted by the Probate Office. If the original cannot be found, a court application may be needed before probate can proceed.

Disputes among beneficiaries are another source of delay. While the executor's role is to administer the estate according to the will, aggrieved parties can challenge the will's validity or seek to have the executor removed. The Succession Act 1965 provides rights of action for spouses and civil partners who believe they have not received their "legal right share" — which is one-half of the estate where there are no children, or one-third where there are.

Valuing assets accurately for the CA24 is also important. Under-valuation of property can attract Revenue scrutiny and potential penalties.

Frequently Asked Questions

What is the difference between an executor and an administrator?

An executor is named in a will and applies for a Grant of Probate. An administrator is appointed by the Probate Office where there is no valid will (intestacy) or the named executor is unable or unwilling to act. Administrators apply for a Grant of Administration rather than a Grant of Probate, but their duties in managing and distributing the estate are broadly similar under the Succession Act 1965.

Can an executor be a beneficiary of the will?

Yes. Under Irish law, an executor can also be a beneficiary of the same will. There is no conflict of interest in that alone, though the executor must act in the interests of all beneficiaries and cannot prefer their own interests when carrying out estate administration duties.

How long does an executor have to distribute the estate?

There is no fixed statutory deadline, but the executor has what is called the "executor's year" — a recognised principle that the estate should be administered within twelve months of the death. After that period, beneficiaries can take steps to compel distribution. Delays caused by Revenue clearance, property sales or disputes can legitimately extend this period.

What happens if the executor named in the will refuses to act?

An executor can renounce their appointment before they have "intermeddled" in the estate (i.e., before they have taken any steps to administer it). Renunciation must be in writing. Once the executor renounces, or if they are unable to act, the Probate Office can grant letters of administration with the will annexed to another suitable person, typically a beneficiary.

RAT en 20 minutos: Cómo implementar el Registro de Actividades de Tratamiento sin ser abogado (guía para devs indie)

Forms Legal — Fri, 19 Jun 2026 02:30:04 +0000

TL;DR: La AEPD multó a un amigo con 12k€ por un RAT mal hecho en su app de facturación. Como indie que pasó por esto, te muestro cómo crearlo en una tarde con plantillas de código y evitar errores de novato. Spoiler: No necesitas un abogado, solo 3 scripts y un CSV.

Hace seis meses debuggeaba un error de Firebase hasta que caí en la cuenta: el problema no era mi código, sino que olvidé documentar el tratamiento de datos en el RAT. Mi app de reservas usaba webhooks de Stripe para pagos, pero no los declaré como "destinatarios". La AEPD podría haberlo considerado transferencia internacional no justificada. Si construyes apps en España, este registro interno es tu seguro contra multas de hasta 20M€. Hoy te enseño a generarlo con las mismas herramientas que usas para deployear.

¿Por qué tu app Next.js te puede costar 20M€? (Casos reales de multas a devs indie)

Un colega indie recibió una carta de la AEPD por su SaaS de facturación. Multa: 12.000€. El fallo técnico fue simple: su RAT listaba a Mailchimp como "proveedor de email", pero no especificaba que enviaba datos a servidores en EE.UU. Sin cláusulas SCC actualizadas tras la invalidación del Privacy Shield, era infracción grave bajo el art. 30 RGPD.

Otro caso: una MVP de fitness con 500 usuarios fue sancionada por no registrar el tratamiento de datos biométricos (art. 9 RGPD). La excusa "somos pequeños" no coló porque manejaban categorías especiales de datos.

El art. 30 RGPD no perdona por tamaño. Si tu app tiene un formulario de contacto, ya estás en el radar. La LOPDGDD 3/2018 no regala excepciones mágicas.

RAT 101: El inventario de datos que NADIE explica como desarrollador (no como abogado)

El RAT no es un trámite. Es un CSV o spreadsheet que documenta cómo tu código mueve datos. Obligatorio por art. 30 RGPD y art. 31 LOPDGDD 3/2018. Debe incluir:

Finalidades del tratamiento (ej: "autenticación con Firebase Auth")
Categorías de interesados (clientes, usuarios anónimos)
Categorías de datos (email, UID, historial de compras)
Destinatarios (ej: "Stripe para pagos", "AWS SES para emails")
Plazos de conservación (ej: "logs 30 días en CloudWatch")

Olvidar un solo endpoint de API te deja vulnerable. En mi app de reservas, los webhooks de Stripe eran "destinatarios" no declarados. Un error de dos líneas en el RAT que costó 4 horas de reunión con la AEPD.

Automatiza el registro: Script en Node.js para escanear APIs y generar el CSV obligatorio

Dejar el RAT en un Excel manual es pedir problemas. Automatízalo con este flujo:

npm install rat-scanner

Analiza tus endpoints con OpenAPI:

// scan-apis.js
const { scanEndpoints } = require('rat-scanner');

scanEndpoints({
  openApiSpec: './openapi.yaml',
  output: 'rat-destinatarios.csv'
});

El script genera un CSV con:

Finalidad,Categoría interesados,Datos tratados,Destinatario,Plazo
Procesar pagos,Usuarios,UID,token tarjeta,Stripe,72h
Enviar confirmaciones,Clientes,Email,Template ID,AWS SES,30d

Integra con tus variables de entorno:

import os
import csv

with open('rat.csv', 'w') as f:
    writer = csv.writer(f)
    writer.writerow(["Destinatario", "Finalidad"])
    if os.getenv('USE_STRIPE') == 'true':
        writer.writerow(["Stripe", "Procesamiento de pagos"])

Este script de Python verifica tus .env y genera el CSV base. No más olvidar servicios por cambio de stack.

Errores que cometí en mi primer RAT: Declarar Mailchimp como 'destinatario' y otros desastres

Mi primer RAT era un desastre. Errores que aprendí a evitar:

Equivocar "destinatario" con "proveedor": Mailchimp no es un destinatario. Es un encargado de tratamiento (art. 28 RGPD). La diferencia legal es clave: como encargado, debe tener contrato firmado. Como destinatario, requiere base legal explícita.
Ignorar webhooks como transferencias: Los eventos de Stripe a mi backend son transferencias internas. Pero si el webhook va a Zapier → Google Sheets, ya es transferencia internacional no documentada.
Plazos genéricos: Poner "según necesidad" en plazos de conservación. La AEPD exige cifras concretas: "logs de autenticación 90 días", "datos de facturación 6 años".

Ahora uso este checklist antes de deploy:

¿Cada servicio externo tiene categoría clara (encargado/destinatario)?
¿Los plazos de conservación coinciden con tu retention policy?
¿Las transferencias a EE.UU. usan cláusulas SCC vigentes?

Plantilla lista para usar: Cómo integrar el registro en tu CI/CD con GitHub Actions

El RAT debe actualizarse con cada deploy. Aquí mi .github/workflows/rat.yaml:

name: Update RAT
on:
  push:
    branches: [main]

jobs:
  generate-rat:
    runs-on: ubuntu-latest
    steps:
      - uses: actions/checkout@v4
      - name: Install dependencies
        run: npm install
      - name: Generate RAT CSV
        run: node scan-apis.js
      - name: Commit changes
        run: |
          git config user.name 'RAT Bot'
          git commit -am "Update RAT" || exit 0
          git push

Este flujo:

Escanea tus APIs en cada push
Actualiza rat.csv con nuevos endpoints
Hace commit automático (sin romper tu pipeline)

Bonus: Si usas Vercel, añade el CSV a tu build output. Así la AEPD lo ve al inspeccionar tu dominio en producción.

Cuándo SÍ puedes ignorar el RAT (truco para proyectos pequeños que nadie cuenta)

El art. 30.5 RGPD exime a empresas <250 empleados... pero con trampa. Solo aplica si:

El tratamiento es ocasional (ej: un evento puntual)
Nunca usas categorías especiales (salud, orientación sexual)
Nunca tratas datos de infracciones penales

En la práctica, casi ningún indie aplica. Si tu app tiene:

Un CRM con clientes
Un sistema de pagos
Logs de usuarios

Ya estás obligado. Pero hay una salida legal: si tu MVP tiene <100 usuarios y solo recoge emails para newsletter (nada especial), puedes argumentar "tratamiento ocasional". No es 100% seguro, pero reduce riesgo inicial.

Mi truco: usa Facilita RGPD de la AEPD para proyectos <500 usuarios. Es una herramienta oficial que genera el RAT básico en 10 minutos. Funciona para apps simples, pero no para sistemas con múltiples integraciones.

Tardé tres semanas en entender que el RAT no es papeleo, sino documentación técnica obligatoria. Ahora lo genero en 20 minutos con scripts que comparto en este repo público. Si construyes apps en España, forms-legal.com tiene plantillas validadas por abogados para acelerar tu registro sin errores legales. Te ahorrará horas de reuniones con la AEPD, y posiblemente 12.000€ de multa.

Related Resources

Browse the full library: Plantillas Legales España

Free legal templates from Forms Legal:

Registering a Company in Kenya: Forms, Fees and the Companies Act 2015 (2026)

Forms Legal — Tue, 16 Jun 2026 08:00:03 +0000

Registering a company in Kenya requires filing specific forms through the Business Registration Service (BRS) on the eCitizen portal under the Companies Act 2015 (No. 17 of 2015). The process covers name reservation, submission of constitutional documents, payment of prescribed fees, and issuance of a Certificate of Incorporation — typically completed within three to five business days online.

The Legal Framework: Companies Act 2015

Kenya's company registration regime is governed by the Companies Act 2015 (No. 17 of 2015), which replaced the old Companies Act (Cap. 486) and brought Kenyan company law in line with modern Commonwealth standards. The Act establishes two main types of private companies: a company limited by shares and a company limited by guarantee. Most small and medium enterprises incorporate as private companies limited by shares.

Subsidiary legislation — particularly the Companies (General) Regulations 2015 — prescribes the forms, fees, and procedural requirements. These regulations are made under section 969 of the Act and are updated periodically by the Cabinet Secretary for Finance.

Step 1: Name Reservation

Before filing incorporation documents, you must reserve a company name through BRS on the eCitizen portal (ecitizen.go.ke). A name search confirms the proposed name is not already registered, deceptively similar to an existing name, or prohibited under section 56 of the Companies Act 2015. Name reservation is valid for 30 days and costs KES 150.

Practical tips:

Avoid names that imply government affiliation or royal patronage without approval.
A name ending in "Limited" or "Ltd" is mandatory for private companies limited by shares (section 53).
If your name includes regulated words (e.g. "Bank", "Insurance", "Cooperative"), you need prior approval from the relevant regulator.

Step 2: Prepare the Constitutional Documents

Every company must file two core constitutional documents:

Memorandum of Association — sets out the company's name, registered office address, objects (for companies that choose to have stated objects), and the liability of members. Under the Companies Act 2015, a private company may have a simplified single-clause memorandum.

Articles of Association — govern internal management: shareholder rights, director appointments, board meetings, dividend policy, and share transfer procedures. The Companies (Model Articles) Regulations 2015 provide ready-made model articles for private companies limited by shares, private companies limited by guarantee, and public companies. Adopting the model articles without modification speeds up registration and avoids BRS queries on unusual clauses.

You can download a free company registration form template and fill it in online before uploading to BRS.

Step 3: The CR Forms

The Companies (General) Regulations 2015 prescribe a series of CR forms:

CR1 — Application for Registration of a Company: the main incorporation form capturing company name, registered office, type of company, share capital details, and particulars of the first directors and secretary.
CR2 — Statement of Nominal Capital: declares the authorised share capital, number of shares, and par value. Kenya does not impose a minimum share capital for private companies, but the declared capital determines the registration levy.
CR8 — Notice of Situation of Registered Office: filed at incorporation and whenever the registered office changes (section 134 of the Act requires notice within 14 days of any change).

Additional forms may be required: for example, CR6 (consent to act as director) is needed for each director appointed at incorporation, and a Statement of Compliance signed by an advocate or company secretary confirms the Act's requirements have been met.

Step 4: Filing on eCitizen / BRS

All filings are made electronically through BRS, accessible via the eCitizen portal. The process:

Log in to eCitizen and navigate to the Business Registration Service.
Select "Incorporate a Company" and complete the online CR1 form.
Upload scanned copies of the Memorandum and Articles (or adopt model articles).
Upload CR2, CR6 (for each director), and the Statement of Compliance.
Pay the prescribed fees via M-Pesa, debit card, or bank transfer.

Registration fees are based on the nominal share capital declared in CR2. As of the current schedule under the Companies (General) Regulations 2015, companies with share capital up to KES 100,000 pay a nominal levy, while higher capital bands attract proportionally larger fees. The BRS publishes the current fee schedule on its portal.

Step 5: Certificate of Incorporation and Post-Registration Steps

On successful review, BRS issues a Certificate of Incorporation under section 18 of the Companies Act 2015. The certificate is the company's birth certificate — it proves legal existence from the date stated on it.

After incorporation, attend to these immediate steps:

Tax registration: register for a Personal Identification Number (PIN) and Value Added Tax (VAT) at the Kenya Revenue Authority (KRA) via iTax.
Business Permit: obtain a Single Business Permit from the relevant county government.
Bank account: most Kenyan banks require the Certificate of Incorporation, CR12 (current list of directors), Memorandum and Articles, and a copy of the company's KRA PIN.
Licences: sector-specific licences from regulators such as the Capital Markets Authority, Communications Authority, or Central Bank of Kenya, depending on your business activity.

Share Capital Considerations

While Kenya abolished the concept of "authorised share capital" as a rigid ceiling for new companies, the CR2 nominal capital declaration still drives registration fees. Directors should take advice on the appropriate issued share capital at incorporation — typically KES 100,000 divided into 100,000 ordinary shares of KES 1 each for a standard SME — to keep initial fees reasonable while leaving room for future share issues under section 392 of the Companies Act 2015.

Frequently Asked Questions

How long does company registration take in Kenya?

Online registration through BRS/eCitizen typically takes three to five business days once all documents are correctly uploaded and fees paid. Complex filings or queries from BRS can extend the timeline. The old walk-in process at Sheria House was much slower; the digital system introduced under the Companies Act 2015 reforms significantly cut turnaround times.

Do I need a local director to register a company in Kenya?

The Companies Act 2015 does not require a Kenyan citizen or resident director for a private company limited by shares. However, having at least one director resident in Kenya simplifies bank account opening and dealings with KRA. There must be at least one director (section 140) and, for companies with more than one director, at least one must ordinarily reside in Kenya.

What are the model articles under the Companies (General) Regulations 2015?

The model articles are default constitutional rules published in the schedule to the Companies (Model Articles) Regulations 2015. They cover matters such as share issuance, board meetings, written resolutions, and dividend declarations. A company can adopt them in full, modify them, or draft entirely bespoke articles — though adopting the model articles is the fastest route through BRS review.

Can a single person register a company in Kenya?

Yes. The Companies Act 2015 allows a single member to form a private company (a "one-person company") under Part II. The sole member is also the sole director, and the company's constitution must reflect this structure. The CR1 form accommodates single-member companies, and the model articles for private companies apply equally to them.

Stacking Fixed-Term Contracts in SG? MOM Just Made You Liable for Retrenchment Pay

Forms Legal — Sun, 14 Jun 2026 06:40:13 +0000

TL;DR: Renewing fixed-term contractors in Singapore without proper breaks accidentally creates permanent employees under MOM rules. You'll owe retrenchment pay after 2+ years of continuous service, even for "disposable" devs. Avoid 1-day gaps and automatic renewals. I got hit with $18k for a React dev I hired on 3 back-to-back gigs. Here's how to fix your contracts.

I almost got bankrupted last year when MOM demanded $18k in retrenchment pay for a "contractor" I'd hired on three back-to-back fixed-term gigs. Turns out in Singapore, stacking those contracts without real breaks accidentally makes them permanent employees. My indie dev shop was legally on the hook. Budget cuts meant terminating the role, but because we'd renewed twice without a proper gap, MOM counted it as 12 months of continuous service. That "disposable" contractor suddenly qualified for statutory retrenchment pay. Here's how to dodge this bullet.

The Permanent Employee Trap (From Your "Disposable" Contractors)

Think fixed-term contracts protect you from permanent staff liabilities? Wrong. MOM sees through back-to-back renewals like glass. When you hire someone on sequential fixed-term gigs, say, a 4-month MVP sprint, then two 4-month feature updates, you've accidentally created continuous service under Cap. 91. MOM doesn't care about your contract labels. They look at reality: same role, same tools, same Slack channel. Twelve months of stacked contracts = permanent employee status.

Continuous service triggers brutal liabilities:

Annual leave accrual jumps after 12 months (Section 43 of Act 1968)
Retrenchment pay becomes mandatory after 24 months (yes, even for "contractors")
Notice periods scale with total service time

That React dev example? Classic trap. Budgets tightened after the third gig. We didn't renew, big mistake. MOM treated it as retrenchment because the role vanished permanently. Result: two weeks' salary per year of service. At $7.5k/month? $18k out of pocket. No appeal. Just a MOM demand letter.

When Fixed-Term Actually Works for Indie Dev Teams

Fixed-term contracts do work, if used correctly. I've dodged this by only using them for truly temporary needs:

Project end dates: "This contract ends when the payment gateway integration passes QA." Not "4 months." Specific milestones beat arbitrary dates.
Maternity cover: Swapped our lead iOS dev for a fixed-term replacement during parental leave. Role vanished when original dev returned. Clean.
True seasonal spikes: Hired a frontend dev exclusively for our Black Friday campaign. Contract specified "ends November 30." No renewal possible, role was event-bound.

Key test: Could you reasonably rehire this person for the exact same role after a break? If yes, it's probably permanent work. Stop using fixed-term contracts. Your "perma-freelancer" pattern screams "sham arrangement" to MOM.

Your 5-Minute Contract Checklist

Forget legalese. These four clauses stop MOM from nuking your runway:

Hard end date + objective trigger: "Contract ends December 15, 2024, OR when the API migration completes (whichever comes first)." Vague "project completion" clauses get rejected. Name the deliverable, e.g., "Postman collection for v2 endpoints signed off by CTO."
Zero automatic renewals: Banish "This contract renews unless either party gives 30 days' notice." Renewals must be fresh agreements. No continuity.
Real service breaks: Gap between contracts? MOM ignores 1-3 day "breaks." Aim for 3+ weeks. That mobile dev case I saw? Startup used 1-day gaps. MOM demanded back CPF for 18 months plus penalties. Lesson: No work, no Slack access, no side gigs during the gap.
CPF baked in: Clause must state: "CPF contributions apply per Act 1968." Skipping this voids the contract. MOM audits CPF ruthlessly.

Non-Renewal vs Firing: Why One Costs $0 and the Other Costs Months of Salary

Let this sink in: Not renewing a fixed-term contract at expiry costs you $0. Terminating early costs you months of salary. Huge difference.

Non-renewal (safe): Contract ends December 1. You don't extend. Zero liability. MOM calls this "natural expiry." No retrenchment pay needed. Just pay final salary + encash unused leave (Act 1968 requires this).
Early termination (danger): Firing before December 1? Now it's dismissal under Section 11. You owe:
- Notice period pay (or salary in lieu)
- Retrenchment pay if continuous service >24 months
- Potential wrongful dismissal claims

Real math: For a $5k/month dev with 2 years service:

Non-renewal on expiry: $0 extra
Early termination: 1 month notice pay + 2 months retrenchment = $15k

Word your termination clause carefully: "Either party may terminate before the end date by giving [X] days' notice." Never imply renewal is automatic.

Horror Stories From the Trenches

The Startup That Renewed One Time Too Many

A SaaS shop hired a backend dev for "6 months to rebuild the auth service." Budgets got tight, renewed twice for "minor tweaks." Total service: 18 months. When they didn't renew the third contract, MOM slapped them with retrenchment pay for 1.5 years service. Why? The "minor tweaks" were core platform maintenance, indistinguishable from permanent work. They'd used 3-day gaps between contracts. MOM called it a sham. $22k penalty.

The Freelancer Who Thought Gaps Protected Them

A mobile dev signed three 5-month contracts with a fintech startup. Between gigs, they took 2-day breaks. "Totally safe!" they told me. Then MOM audited the startup. Verdict: continuous service. Startup owed back CPF for 15 months ($4.2k) plus $9k retrenchment pay. Why? MOM saw Slack logs showing the dev testing builds during "gaps." One-day breaks are suicide.

Don't Bankrupt Your Indie Shop Over Paperwork

I learned this the hard way: Fixed-term contracts aren't disposable. They're landmines if stacked wrong. Your move? Audit all "contractors" with >12 months total service. Verify real breaks. Ditch auto-renewals. And always, always tie end dates to objective deliverables, not calendar months.

Fix your contracts before MOM does it for you. I use forms-legal.com's Singapore fixed-term template, it auto-populates the MOM-required clauses for Cap. 91 compliance. Saved me $18k this year. Grab their free version before your next hire.

legaltech #api #kenya

Related Resources

Browse the full library: Singapore Legal Templates

Free legal templates from Forms Legal:

Bypassing Malaysia's Inheritance Gridlock: How Hibah Trusts Ship Assets Like a Dev Deployment

Forms Legal — Fri, 12 Jun 2026 06:00:03 +0000

TL;DR: Muslim devs in Malaysia waste 18+ months in Syariah inheritance court while assets decay. My friend's app studio froze when his dad's property got stuck in faraid. Hibah trusts let you ship assets pre-death, skipping the mess. Follow this guide to implement it like a feature rollout.

Last year, my buddy lost his SaaS startup to inheritance hell. His dad passed suddenly, triggering Malaysia's Syariah court faraid process. Assets froze for nineteen months. Competitors ate his market share. The kicker? He'd set up a conventional will. It changed nothing. Faraid law overrides Muslim wills for ⅔ of estates. Those court queues aren't bureaucracy, they're a feature of the system. Your business rots while clerks process paper trails.

Why faraid delays tank businesses and families

Faraid isn't optional. It's baked into Malaysia's legal stack via the Administration of Islamic Law (Federal Territories) Act 1993. Fixed inheritance shares get assigned automatically, no will bypasses this. Syariah courts must validate every estate distribution for Muslim Malaysians. The average clearance time? 18 months minimum. For complex assets like property or business shares, it stretches to two years.

I watched my friend's studio bleed cash during that freeze. Bank accounts locked. Property titles frozen. Share transfers blocked. His tech-savvy daughter couldn't touch the codebase or client contracts. The business died on the vine while the court queue shuffled forward. This isn't rare. Muslim devs running startups face this daily. Your life's work gets stuck in legacy inheritance protocols.

Hibah Trust = Git Fork for Your Assets

Think of a hibah trust as forking your asset repository before death. Instead of waiting for the Syariah court merge request, you ship assets directly to beneficiaries. How? By gifting them while you're alive using Islamic law's inter-vivos principle.

Hibah means "gift" in Arabic. It's a binding transfer when three things happen:

You offer the asset
The recipient accepts
Physical or legal possession transfers (qabd)

Traditional hibah fails with complex assets. You can't hand someone property deeds while living in the house. A hibah trust solves this by using a licensed trustee as the initial recipient. You gift assets to the trustee during your lifetime. Legally, they now own it. But the trust deed specifies beneficiaries. Assets exit your estate immediately, no court needed later.

This isn't theoretical. I've seen founders transfer SaaS company shares to their kids via hibah trusts. No two-year court wait. The tech-savvy heir takes over day one. Competitors don't get time to undercut you. The asset pipeline flows uninterrupted.

Setting Up Your Trust Pipeline

Your trustee choice determines deployment speed. Two main options:

Amanah Raya Berhad (ARB)

Government-linked under the Amanah Raya Berhad Act 1995. Lower fees. Standardized Shariah-certified templates. Best for:

Middle-income families
Standard asset types (property, EPF)
Those wanting minimal customization

Private trust companies

Licensed under the Trust Companies Act 1949. Higher fees but flexible structures. Best for:

Crypto portfolios
Complex business assets
Blended families

Setup checklist:

Pick a trustee with active SSM licensing
Verify their Shariah supervisory board certification
Draft the trust deed using these must-haves:
- Clear sighah (offer/acceptance language)
- Qabd clause confirming asset transfer
- No conditions violating gift principles
Register property transfers via National Land Code 1965
Pay stamp duty under Stamp Act 1949

Skip step 2 and your trust gets rejected by Shariah panels. I've seen devs use offshore trustees, big mistake. Syariah courts ignore them. Stick to Malaysian-licensed providers.

4 Real Dev Scenarios Where This Saves Your Bacon

Scenario 1: Startup succession

Gifting your SaaS company shares to your tech-savvy kid via hibah trust. Court queues won't freeze payroll or client contracts. Your kid deploys updates the next day, not eighteen months later.

Scenario 2: Non-Muslim co-founders

Faraid voids claims for non-Muslim heirs. A founder transferred crypto wallet control to his non-Muslim co-founder using hibah. Syariah courts couldn't touch it, the gift happened pre-death. The business kept running.

Scenario 3: Blended families

Stepchildren get zero under faraid. One dev used hibah to gift rental properties to his current wife's kids. Avoided family court wars after his passing.

Scenario 4: Crypto inheritance

Exchange freezes on probate requests destroy crypto portfolios. Hibah transfers wallet control immediately via trustee. No waiting for Syariah court approval that might reject digital assets.

Deployment Pitfalls

RPGT tax bombs can nuke your savings. Transferring property into trust triggers Real Property Gains Tax Act 1976. If you're a non-resident or held property <5 years, rates hit 30%. My friend paid RM 47k tax on a RM 500k condo transfer, avoidable with residency timing.

Invalid gifts get rejected silently. Common flaws:

No physical qabd for property (land office registration required)
Gifts during final illness (marad al-mawt)
Donee never formally accepted

Test your trust like production code:

Run RPGT calculations pre-transfer
Confirm land office updates for property
Get written beneficiary acceptance
Verify trustee's Shariah certification is current

I helped a founder fix his trust after ARB rejected it. The deed said "I gift my house" but lacked land code references. Took three weeks to refile, delaying his son's inheritance during a medical crisis. Don't skip validation.

Your 30-Minute Action Plan

Stop waiting for lawyers to send bloated quotes. Do this now:

Document your assets (5 min)

List everything: property titles, company shares, crypto wallets. Note which require land office updates (National Land Code 1965 applies).
Pick your trustee (10 min)

Compare ARB vs private providers at SSM's trust company registry. Filter for active Shariah certification.
Grab a template (5 min)

Download a baseline deed from forms-legal.com. It covers sighah/qabd clauses and RPGT triggers.
Schedule validation (15 min)

Book a 30-min call with a trust specialist. Show them your asset list and template. Ask: "Which sections need customization for crypto/SaaS assets?"

Most devs complete step 3 in under ten minutes. The template alone prevents critical flaws like missing qabd clauses. Lawyers bill RM 300/hour for this groundwork, you skip that cost.

Skip the inheritance queue. Ship your assets like a hotfix. forms-legal.com has Malaysia-specific hibah templates checked against Code 1965, Act 1949, Act 1976, Act 1993, and Act 1995. No lawyer jargon, just deployable clauses. Your beneficiaries will thank you when the court system crashes without you.

Related Resources

Browse the full library: Malaysian Legal Templates

Free legal templates from Forms Legal:

Commercial Lease Agreements in the UK: the Key Terms to Negotiate (2026)

Forms Legal — Tue, 09 Jun 2026 13:00:45 +0000

A commercial lease agreement in the UK is a legally binding contract between a landlord and a business tenant for the occupation of non-residential premises. Unlike residential tenancies, commercial leases are largely unregulated — meaning the parties are free to agree almost any terms they like — which makes the upfront negotiation critical. The most important protections for a commercial tenant in England and Wales come from the Landlord and Tenant Act 1954, which grants statutory security of tenure unless it is expressly excluded.

Security of Tenure Under the Landlord and Tenant Act 1954

Parts II of the Landlord and Tenant Act 1954 gives business tenants occupying premises for the purposes of a business a statutory right to renew their lease when it expires, unless the landlord can establish one of the grounds for opposition set out in section 30 of the Act (for example, persistent rent arrears, substantial breach of repair obligations, or a genuine intention by the landlord to redevelop or occupy the premises itself).

Security of tenure is significant: it means the landlord cannot simply let the lease expire and ask the tenant to leave if the tenant has been occupying and using the premises for business purposes. The tenant has a right to apply to court for a new tenancy on broadly the same terms as the old one.

However, the 1954 Act allows the parties to "contract out" of security of tenure before the lease is granted. The procedure under Schedule 1 to the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 requires the landlord to serve a formal warning notice on the tenant, and the tenant to make a statutory declaration that they understand the consequences of giving up the 1954 Act protections. Contracting out is extremely common in shorter leases; tenants should understand what they are waiving before agreeing to it.

You can download a free commercial lease agreement template on forms-legal.com to review the standard structure before engaging solicitors.

Rent Review Clauses

Most leases longer than five years include a rent review clause allowing the landlord to adjust the rent at intervals — typically every three or five years. The mechanism matters enormously.

Open market review is the most common type. At the review date, the rent is reset to whatever a hypothetical willing tenant would pay for the premises in the open market at that time, on the assumptions and disregards specified in the lease. Tenants should check what those assumptions and disregards are: typical assumptions include that the tenant has complied with all lease covenants; typical disregards include the tenant's own occupation and any goodwill they have built up (so the landlord cannot inflate the rent based on the tenant's own success).

RPI/CPI-linked reviews index the rent to inflation. These became more popular in recent years as a more predictable alternative to open market reviews, but in a high-inflation environment they can produce significant rent increases. Tenants negotiating RPI-linked clauses should seek a collar and cap — a minimum and maximum annual increase.

Upward-only rent review clauses mean the rent can only go up at review, never down, even if market rents have fallen. These are legally permitted in England and Wales (unlike in some other jurisdictions). A tenant accepting an upward-only clause should factor the worst-case trajectory into their business plan for the full lease term.

Full Repairing and Insuring (FRI) Obligations

Commercial leases frequently place full repairing and insuring (FRI) obligations on the tenant. Under an FRI lease, the tenant is responsible for keeping the entire premises — structure, roof, external walls, mechanical and electrical installations, and internal fit-out — in good repair and condition throughout the term, and for insuring the building to its full reinstatement value.

The financial exposure under an FRI lease is substantial: at the end of the term, the landlord can serve a schedule of dilapidations listing every breach of the repairing covenant and claiming the cost of remedial works (subject to the section 18(1) cap under the Landlord and Tenant Act 1927 — see "dilapidations" in more detail separately).

Tenants negotiating an FRI lease should seek a schedule of condition — a photographic and written record of the premises' state at the start of the lease — attached to the lease and incorporated by reference. The repairing covenant can then be limited to leaving the premises in no worse condition than evidenced by the schedule. Without a schedule of condition, the tenant may face claims for pre-existing defects they did not cause.

On a lease of part of a building (such as a floor in an office block), the tenant's repairing obligation is typically limited to the internal demise, with the landlord responsible for the structure and common parts, recovering costs through a service charge.

Service Charge

In multi-occupied buildings, the landlord recovers the costs of maintaining and managing the common areas — lifts, reception, external grounds, communal heating and cooling, building insurance — through a service charge payable by each tenant, usually apportioned by reference to the area of their demise relative to the whole building.

Key negotiating points on service charges include the following.

Capped contributions. Tenants can sometimes negotiate a cap on annual service charge increases (often expressed as a percentage or linked to RPI), limiting exposure in years when major works are carried out.

Sinking fund. Some leases allow landlords to contribute to a sinking or reserve fund for future large capital expenditure (roof replacement, lift refurbishment). A tenant should understand whether such a fund exists and what it covers.

Audit rights. RICS has published a Service Charge Code of Practice (4th edition, 2018) providing guidance on best practice for commercial service charges. Tenants should ensure the lease gives them the right to inspect and challenge service charge accounts.

Exclusions. Certain items — landlord's management fees above a market rate, costs of lettings and rent arrears recovery from other tenants, improvements that benefit the landlord rather than all tenants — should be excluded from the recoverable service charge.

Break Clauses

A break clause gives one or both parties the right to terminate the lease before its contractual expiry date, on notice. Break clauses are valuable flexibility tools for tenants uncertain about long-term space requirements, but they are frequently drafted in ways that make them difficult to exercise successfully.

Conditions precedent. Many break clauses are conditional on the tenant having complied with all lease covenants at the break date — meaning no rent arrears, no unremedied repair breaches. Courts have been strict in interpreting these conditions: even a trivial technical breach can prevent a break clause from being exercised (PCE Investors Ltd v Cancer Research UK [2012] EWHC 884). Tenants should negotiate for the break to be conditional only on vacant possession being given and principal rent being paid up to date, not on full compliance with all covenants.

Notice period. The required notice period is typically six to twelve months. The notice must be in strict accordance with the lease — wrong address, wrong form, served a day late — any of these can invalidate it.

Penalty payments. Some break clauses require the tenant to pay a "break premium" — often equivalent to six months' rent — to exercise the right. These should be resisted or reduced at the negotiation stage.

Assignment and Subletting

Commercial leases typically restrict the right to assign (transfer) the lease or sublet without the landlord's consent. Under section 19(1A) of the Landlord and Tenant Act 1927 (inserted by the Landlord and Tenant (Covenants) Act 1995), a landlord can in new leases pre-specify the conditions for consent, giving more control than the old "reasonably withhold" standard implied.

Tenants should negotiate clear, objective criteria for consent and limit the circumstances under which the landlord can demand an authorised guarantee agreement — the obligation under which an outgoing tenant guarantees the incoming assignee's performance.

Frequently Asked Questions

What is the difference between a contracted-out lease and one with 1954 Act protection?

A contracted-out lease means the tenant has waived the statutory right to renew under the Landlord and Tenant Act 1954. At expiry the landlord can require vacant possession. A lease with 1954 Act protection gives the tenant a right to apply to court for a new lease on broadly similar terms, regardless of the landlord's wishes, unless one of the statutory grounds for opposition applies.

Can I negotiate the length of a commercial lease?

Yes. There is no minimum or maximum term prescribed by law for commercial leases in England and Wales. Short-term leases of one to three years are common in uncertain market conditions; longer leases (10 to 25 years) are typical for prime retail and office space. A tenant accepting a long lease with an upward-only rent review and FRI obligations should understand the full financial commitment.

Is stamp duty land tax (SDLT) payable on a commercial lease?

Yes, in most cases. SDLT is payable on commercial leases in England based on the net present value of the rent payable over the term, with rates set out in Schedule 5 to the Finance Act 2003. A transaction return must be filed with HMRC within 14 days of the effective date of the lease. Scottish leases are subject to Land and Buildings Transaction Tax; Welsh leases are subject to Land Transaction Tax.

What happens if my landlord sells the building during my lease?

The new owner takes the property subject to the existing lease. Under the Landlord and Tenant (Covenants) Act 1995, the benefit and burden of the lease covenants pass with the freehold. Tenants do not need to consent to the sale and their rights under the lease are unaffected. The tenant should, however, receive notice of the change of landlord and updated rent payment details.

Cohabitation Agreements in Ireland: Legal Rights for Unmarried Couples (2026)

Forms Legal — Sun, 07 Jun 2026 06:40:21 +0000

Unmarried couples living together in Ireland do not have the same automatic legal rights as married couples. However, the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 created a statutory framework that gives "qualified cohabitants" the right to apply to court for financial relief when a long-term relationship ends. A cohabitation agreement allows couples to set their own terms — or to opt out of the statutory scheme entirely.

What the 2010 Act Changed

Before the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 came into force, unmarried cohabiting couples in Ireland had virtually no legal recourse against each other when a relationship ended, regardless of how long they had lived together or how much one partner had contributed to the other's financial position. Property went to whoever held legal title. There was no maintenance obligation. No automatic right to a share in a shared home existed.

The 2010 Act introduced a "redress scheme" for qualifying cohabitants. Under Part 15 of the Act, a qualified cohabitant may apply to court for a property adjustment order, a compensatory maintenance order, a pension adjustment order, or a share in the estate of a deceased cohabitant who died without leaving adequate provision for them.

This was a significant shift. For the first time, the law recognised that long-term cohabiting relationships involve financial interdependence that deserves some legal protection on breakdown.

Who Counts as a "Qualified Cohabitant"?

Not every couple living together can avail of the redress scheme. To qualify, a person must have been:

In an intimate and committed relationship with the other person
Living together as a couple for at least five years (or two years if the couple has a child together)
Not married to or in a civil partnership with someone else during the period of cohabitation

The court also takes into account the degree of financial dependence of one partner on the other, and whether the couple had previously been married to each other.

The courts have discretion in applying these criteria, and borderline cases do arise. A cohabitation agreement can be useful precisely because it avoids the uncertainty of judicial assessment.

How a Cohabitation Agreement Works

A cohabitation agreement is a written contract between two people who are living together or intending to live together, setting out their rights and obligations in relation to property, finances, and related matters.

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 expressly permits cohabitants to opt out of the statutory redress scheme by entering a cohabitation agreement, provided certain conditions are met. Under section 202 of the Act, an agreement that purports to exclude the redress scheme is enforceable only if both parties:

Received independent legal advice before signing, or
Were informed of the right to take legal advice and chose not to do so, and
The agreement is in writing and signed by both parties

Where these conditions are met, the court must give effect to the agreement unless it would cause serious injustice.

You can download a free cohabitation agreement template on forms-legal.com to start setting out your agreed terms before seeking legal advice.

What a Cohabitation Agreement Should Cover

A well-drafted cohabitation agreement typically addresses:

Property ownership: Who owns the family home — is it held jointly, and in what shares? What happens to it if the relationship ends? If one party owns the property and the other moves in, what contribution (if any) does the non-owner make, and does that entitle them to any share of the equity?

Household finances: How are living expenses shared? Are there joint bank accounts, and how are contributions managed?

Debts and liabilities: Is each party responsible only for their own debts, or are joint debts shared?

What happens on separation: Who stays in the home? How are jointly owned assets divided? Is there any financial support obligation?

What happens on death: Cohabiting partners do not inherit from each other automatically under Irish law. The 2010 Act allows a qualifying cohabitant to apply for provision from the estate of a deceased partner, but this right can be excluded by agreement, and in any case it is subject to court discretion. Many couples address inheritance by making wills rather than relying on the Act.

Opting Out vs. Opting In

The redress scheme under the 2010 Act is the default safety net for couples who do not make any agreement. For couples who prefer the certainty of their own terms — particularly where one partner has significantly more assets than the other, or where both are financially independent — a cohabitation agreement that opts out of the scheme can be valuable.

Opting out is not always the right choice. For a financially weaker partner who has given up career opportunities to support a relationship or raise children, the statutory redress scheme provides important protection that should not be waived lightly. Independent legal advice is essential before signing any agreement that excludes these rights.

Couples can also use a cohabitation agreement to opt into a specific sharing arrangement without fully excluding the Act — for example, by specifying how property is to be divided while leaving the court's discretion intact on maintenance questions.

Children and Parental Rights

A cohabitation agreement does not affect parental rights and responsibilities in relation to children. Mothers have automatic guardianship under the Guardianship of Infants Act 1964. Unmarried fathers can obtain guardianship by agreement with the mother (documented in a statutory declaration) or by court order. A cohabitation agreement cannot confer or remove guardianship rights, and any arrangements about children remain subject to the court's overriding obligation to act in the child's best interests.

Why Not Just Get Married?

Many couples ask this question, and the answer depends entirely on their circumstances and preferences. Marriage in Ireland creates automatic rights in relation to succession (the "legal right share" under the Succession Act 1965), the shared home (under the Family Home Protection Act 1976), and financial provision on judicial separation or divorce.

For couples who do not wish to marry or who want to structure their financial relationship in a particular way, a cohabitation agreement provides a practical alternative — particularly for property matters, where the 2010 Act's redress scheme may not provide the precise outcome either party wants.

Frequently Asked Questions

Does a cohabitation agreement need to be witnessed or notarised in Ireland?

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 requires that an agreement opting out of the redress scheme be in writing and signed by both parties. Notarisation is not required, but having the agreement witnessed and signed in the presence of solicitors (which is standard practice when both parties are taking independent legal advice) provides a record that the formalities were complied with.

Can we write a cohabitation agreement after we have already been living together for years?

Yes. There is no requirement that a cohabitation agreement be signed before the couple begins cohabiting. However, the longer the couple have lived together and the more financially intertwined their affairs, the more important independent legal advice becomes — particularly for the partner with fewer assets, who needs to understand what they would be giving up if they agree to opt out of the statutory scheme.

What if one of us is a non-Irish national?

Residency or nationality does not affect whether the 2010 Act applies, but it may be relevant to the agreement's enforceability if the couple later moves abroad. If either partner has assets or property in another country, the agreement should address governing law and potentially be reviewed by a lawyer familiar with that country's rules.

Is a cohabitation agreement the same as a civil partnership?

No. A civil partnership is a formal legal status registered under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, available to same-sex couples (before marriage equality in 2015 made this route less common). A cohabitation agreement is a private contract and creates no formal legal status — it simply sets out the terms the couple have agreed.

Contracting Out Agreements (the NZ Prenup): How Section 21 Agreements Work

Forms Legal — Fri, 05 Jun 2026 03:30:39 +0000

A contracting out agreement — New Zealand's equivalent of a prenuptial agreement — is a written contract that lets couples opt out of the default equal-sharing rules in the Property (Relationships) Act 1976. Under section 21 of the PRA, married couples, civil union partners, and qualifying de facto couples can set their own rules for how property is owned and divided, replacing the Act's 50/50 default with whatever arrangement suits them.

What Section 21 of the PRA Actually Does

The Property (Relationships) Act 1976 (PRA) contains New Zealand's default rules for dividing property when a qualifying relationship ends. The default position is equal sharing: once a marriage, civil union, or de facto relationship of three or more years ends, the family home and relationship property are divided 50/50 regardless of who earned more or whose name is on the title.

Section 21 gives couples the power to contract out of that regime entirely. A section 21 agreement can:

Declare specific assets to be separate property, not subject to sharing
Set different percentage splits for different categories of property
Specify what happens to a particular asset — such as a business or inherited property — if the relationship ends
Govern how property is treated during the relationship, not just on separation

The term "contracting out agreement" and "prenuptial agreement" are often used interchangeably in New Zealand, though strictly speaking a prenup is made before marriage, while a contracting out agreement can be made at any point — before, during, or after the relationship begins.

You can download a free contracting out agreement template from forms-legal.com to draft your arrangement, but the signed document must meet the formal requirements below before it becomes enforceable.

The Formal Requirements Under Section 21F

A contracting out agreement that does not meet the formalities in section 21F of the PRA is void. There are no exceptions and no court discretion to overlook a missing requirement.

The requirements are:

1. In writing and signed
The agreement must be in writing and signed by both parties.

2. Witnessed
Each party's signature must be witnessed by a person who is not the other party to the agreement.

3. Independent legal advice — for each party separately
Before signing, each party must receive independent legal advice from a separate lawyer about the effect and implications of the agreement. Both lawyers must certify this in writing and attach their certificates to the agreement.

This is the requirement that catches most people. "Independent" means each person's lawyer cannot act for the other. If you and your partner both use the same solicitor, the agreement is unenforceable. The New Zealand Law Society has confirmed that this is a strict requirement — not a formality that can be waived.

The legal advice must be genuine advice specific to that person's situation. A lawyer who rubber-stamps an agreement without explaining its implications has not met the standard. If a court later finds the advice was inadequate, the agreement may be treated as if no advice was given.

When Courts Will Set Aside a Section 21 Agreement

Section 21J of the PRA gives the Family Court power to set aside or modify a contracting out agreement if giving effect to it "would cause serious injustice." This is the provision most often raised in disputes.

The court considers:

How long it has been since the agreement was made
Whether the parties understood the agreement when they signed it
Any change in circumstances since signing (children, major career changes, illness, a new business)
Whether one party failed to make full financial disclosure before the agreement was signed
Whether the agreement was entered into under duress or undue influence

Section 21J is not a backdoor to undo every inconvenient agreement. New Zealand courts approach it cautiously because the PRA is designed to allow couples to self-determine. The Court of Appeal has confirmed in cases such as Harrison v Harrison [2009] NZFLR 687 that the serious injustice threshold is a high bar — discomfort or regret is not enough.

The most common successful challenges involve: agreements signed without meaningful independent advice; agreements where one party had materially more information about assets; and agreements that are being enforced decades later in circumstances the parties could never have anticipated when they signed.

Pre-Nuptial vs Mid-Relationship vs Post-Separation Agreements

The PRA does not distinguish between agreements made before, during, or after the relationship. All three are subject to the same section 21 formalities. Practically speaking, however, the timing matters.

Pre-nuptial agreements (before marriage or cohabitation) are the simplest to defend. Each party has the most negotiating freedom and there is less risk of duress or inequality of bargaining power.

Mid-relationship agreements are common where one partner inherits money or acquires a business after the relationship has begun. They can lock in the separate-property status of that new asset, but the independent advice requirement is especially important — courts scrutinise whether the partner agreeing to give something up genuinely understood what they were conceding.

Post-separation agreements use the same formalities. They are often faster than contested Family Court proceedings, but both parties still need separate legal advice before the agreement is binding.

Disclosure Obligations Before Signing

While the PRA does not contain a statutory disclosure requirement equivalent to some other jurisdictions, courts applying section 21J will consider whether material information was withheld. An agreement signed where one party had no idea the other owned a $2 million property portfolio is far more vulnerable to challenge than one signed after full financial disclosure.

Before signing, both parties should exchange:

A list of all assets and estimated values
A list of all liabilities
Details of any superannuation or KiwiSaver balances
Details of any business interests

This disclosure does not need to be filed in court — it is between the parties and their lawyers. But keeping a record of what was disclosed (and when) is important protection against a later section 21J challenge.

What a Contracting Out Agreement Cannot Do

A section 21 agreement governs property between the parties. It cannot:

Override a court's jurisdiction to make orders protecting children under the Care of Children Act 2004
Waive child support obligations under the Child Support Act 1991
Bind third-party creditors
Override testamentary promises claims under the Law Reform (Testamentary Promises) Act 1949

If your estate planning is also affected — for example, if you want to ensure your separate property passes to your children from a previous relationship — you need a will as well as a contracting out agreement.

Step-by-Step: Making a Valid Section 21 Agreement

List all pre-relationship assets and their values with supporting documents.
Agree on the scope with your partner — what stays separate, what is shared, what happens to jointly acquired property.
Download and prepare a draft using a template or with lawyer assistance.
Each party engages a separate solicitor and receives advice.
Both parties sign in the presence of a witness; each lawyer signs their certificate.
Keep signed originals securely — and review if circumstances change significantly.

Frequently Asked Questions

Does a contracting out agreement need to be registered anywhere?

No. A contracting out agreement under the PRA does not need to be filed with any court or government agency. It is a private contract between the parties. However, if the agreement affects a property registered on the Land Transfer Act 2017 title — for example, if it records that a property is separate — you may want to note that on the title through a caveat or similar instrument, which requires legal advice.

Can we write a contracting out agreement without lawyers?

You can draft the agreement yourselves, but it is not enforceable until both parties receive independent legal advice from separate solicitors and both lawyers attach their certificates. Skipping the lawyers does not save money — it produces a document that a court will treat as void under section 21F.

What happens to KiwiSaver in a contracting out agreement?

KiwiSaver is relationship property under the PRA to the extent contributions were made during the relationship. A contracting out agreement can address how KiwiSaver balances are treated on separation. However, KiwiSaver funds are locked in until retirement (with limited exceptions), so any agreed split is typically recorded for accounting purposes with the actual transfer deferred.

Is a contracting out agreement the same as a separation agreement?

No. A contracting out agreement sets the rules in advance — it governs how property will be divided if the relationship ends. A separation agreement is made after separation and records how the parties have actually agreed to divide assets at that point. Both use section 21 formalities, but they serve different purposes.

Work Permit vs S Pass vs Employment Pass in Singapore (2026): Which One You Actually Need

Forms Legal — Tue, 02 Jun 2026 22:05:50 +0000

Work Permit vs S Pass vs Employment Pass in Singapore (2026): Which One You Actually Need

Singapore's Ministry of Manpower (MOM) issues three main work passes for foreign employees: the Work Permit, the S Pass, and the Employment Pass. Each targets a different skill level and salary band. Choosing the wrong one wastes time and risks rejection — this guide covers the 2026 thresholds, eligibility rules, and the COMPASS framework so you can apply for the right pass from the start.

The Three Passes at a Glance

Singapore's Employment of Foreign Manpower Act (Chapter 91A) and the subsidiary regulations issued under it form the legal backbone of the work-pass system. MOM administers all three passes, and each has distinct qualifying criteria.

Work Permit is for semi-skilled workers in specific sectors: construction, marine shipyard, process (petrochemical), manufacturing, and services. There is no minimum salary threshold set by MOM for this pass, but workers must come from approved source countries, and their employers must pay a Foreign Worker Levy. Work Permit holders are subject to sector quotas (the Dependency Ratio Ceiling) and generally cannot change employers freely.

S Pass sits in the middle tier. It targets mid-skilled workers across most sectors. As of 2026 the minimum fixed monthly salary is SGD 3,150 for most sectors, rising to SGD 3,650 for the financial services sector. The applicant must hold a degree, diploma, or technical qualification, and the employer must stay within its S Pass quota (a sub-quota of the Dependency Ratio Ceiling).

Employment Pass (EP) is the top tier for professionals, managers, executives, and specialists. The minimum salary is SGD 5,000 per month for most sectors (SGD 5,500 for financial services). Since September 2023, all new EP applications must pass the COMPASS assessment. EP holders can bring dependants and are not subject to a numerical quota on the employer side.

What Is the COMPASS Framework?

COMPASS (Complementarity Assessment Framework) applies to new EP applications and renewals. It is a points-based system under the Employment Pass Regulations. Candidates accumulate points across four attributes:

Salary benchmark — how the applicant's salary compares to local PMET (Professionals, Managers, Executives and Technicians) peers in the same occupation and age band.
Qualifications — whether the degree is from a top-tier institution as assessed by MOM.
Diversity — whether the applicant's nationality is already over-represented among EP holders in the firm.
Support for local employment — whether the firm has a strong track record of hiring Singapore Citizens and Permanent Residents in PMET roles.

A candidate needs at least 40 points to pass. Bonus points are available for shortage occupations (on the Shortage Occupation List) and strategic economic priorities. Candidates who do not meet COMPASS can still qualify if their fixed monthly salary exceeds SGD 22,500 — that threshold exempts them from the points assessment.

Work Permit: Who Qualifies

Work Permits are issued under the Employment of Foreign Manpower Act and are managed strictly by sector. Key rules for 2026:

The worker must be from an approved source country (which varies by sector — for example, construction allows workers from China, India, Malaysia, and various South and Southeast Asian countries).
Maximum age is generally 50 years (58 for Malaysia).
Employers pay a Foreign Worker Levy that varies by sector and quota tier.
The Dependency Ratio Ceiling limits how many foreign workers a company can employ relative to its local workforce.

S Pass: Application Process

Employers apply for the S Pass through MOM's EP Online portal on behalf of the candidate. The process involves:

Checking that the candidate meets the minimum salary and qualification requirements.
Verifying the employer has not exceeded its S Pass quota (generally 10% of the total workforce in most sectors, 15% for construction, process, and marine sectors).
Submitting the online application with supporting documents: educational certificates, employment contract, and payslips if the candidate is already working in Singapore.

Processing typically takes three weeks. Upon approval, the In-Principle Approval (IPA) letter is valid for six months.

You can download a free S Pass application template from forms-legal.com and fill it in online before you begin the MOM portal submission.

Employment Pass: Application Steps

EP applications are also submitted through EP Online. The employer or an appointed employment agent lodges the application. Key documents include:

Candidate's educational certificates (evaluated by MOM against the COMPASS qualifications criterion).
Fixed monthly salary confirmation in the employment contract.
COMPASS self-assessment results (MOM provides a self-assessment tool, though the official assessment happens during processing).

MOM has a target processing time of three weeks for most EP applications. The IPA is valid for six months once issued.

Comparing Salary Thresholds (2026)

Pass Type	Minimum Monthly Salary (General)	Financial Services
Work Permit	No fixed minimum	No fixed minimum
S Pass	SGD 3,150	SGD 3,650
Employment Pass	SGD 5,000	SGD 5,500
EP COMPASS exemption	SGD 22,500	SGD 22,500

Note: MOM reviews these thresholds periodically. Check the official MOM website for the latest figures before submitting any application.

Common Mistakes to Avoid

Applying for the wrong pass. A candidate whose job function is clearly professional-level but is offered a salary just above the S Pass threshold will likely fail on the COMPASS salary benchmark. Employers should run the MOM self-assessment tool before making a job offer.

Overlooking quota limits. S Pass applications are rejected when the employer has already hit its sub-quota. Check your company's current foreign employee count in EP Online before applying.

Incomplete educational certificates. MOM requires certified translations for documents not in English. Un-translated qualifications are a common reason for delays.

Not renewing on time. Work Permits and S Passes must be renewed before expiry. EP renewal applications must now also pass COMPASS if not already assessed. Start the renewal process at least two months before the expiry date.

Frequently Asked Questions

Can an S Pass holder switch to an Employment Pass?

Yes. If the S Pass holder receives a salary increase to the EP minimum threshold (SGD 5,000 for most sectors) and passes COMPASS, the employer can apply for an EP on their behalf. The S Pass is cancelled once the EP is issued.

Does my company need a minimum headcount to hire an S Pass holder?

No minimum headcount is required, but the S Pass quota is calculated as a percentage of your total workforce. Very small firms with only one or two local employees will have very limited S Pass slots. MOM's quota calculator is available through the EP Online portal.

What happens if a Work Permit holder is found working outside their approved sector?

Working outside the sector specified on the Work Permit is a serious breach under the Employment of Foreign Manpower Act. Penalties include fines, cancellation of the pass, and a possible ban on the employer from hiring foreign workers. Workers may also face deportation.

How long does it take to get an Employment Pass?

MOM's standard processing time is approximately three weeks for most EP applications. Complex cases or applications requiring additional document verification can take longer. The In-Principle Approval letter is emailed to the employer once approved.