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Compensation Settlement Agreement
"I need a Compensation Settlement Agreement under Hong Kong law for a senior executive's departure, including a HKD 2.5 million settlement payment, continuing medical benefits until March 2025, and standard non-compete provisions."
1. Parties: Identifies and defines all parties to the agreement, including the employer and employee
2. Background: Sets out the context of the dispute or circumstances leading to the settlement
3. Definitions: Defines key terms used throughout the agreement
4. Settlement Sum: Specifies the amount of compensation and payment terms
5. Payment Terms: Details the timing, method, and conditions of payment
6. Tax Treatment: Addresses the tax implications of the settlement payment
7. Release and Waiver: Comprehensive release of claims by the employee against the employer
8. Confidentiality: Obligations to keep the settlement and its terms confidential
9. Non-disparagement: Mutual obligations not to make negative statements about each other
10. Return of Company Property: Requirements for returning company assets and documents
11. Continuing Obligations: Surviving obligations from employment contract (e.g., confidentiality, IP)
12. Entire Agreement: Confirms this agreement supersedes all previous agreements regarding the subject matter
13. Governing Law and Jurisdiction: Specifies Hong Kong law and courts' jurisdiction
14. Execution: Signature blocks and execution requirements
1. Reference Provision: Terms regarding future employment references, used when parties agree on specific reference content
2. Outplacement Support: Details of any career transition services offered, included when such support is part of the settlement
3. Medical Insurance Extension: Terms for continued medical coverage, relevant when extended health benefits are part of the settlement
4. Legal Costs: Provisions regarding payment of legal fees, included when employer agrees to cover employee's legal costs
5. Share Options/Awards: Treatment of outstanding equity compensation, needed when employee has share-based compensation
6. Re-employment Restrictions: Non-compete or non-solicitation provisions, used when new post-termination restrictions are agreed
7. Announcement: Agreed internal/external communications about the departure, included for senior employees
8. Tax Indemnity: Specific tax-related warranties and indemnities, used for complex tax situations
9. Third Party Rights: Rights of group companies to enforce terms, needed when settlement benefits wider corporate group
1. Schedule 1 - Payment Breakdown: Detailed breakdown of settlement sum components
2. Schedule 2 - Claims Being Settled: Comprehensive list of all claims being released
3. Schedule 3 - Resignation Letter: Form of resignation letter to be signed by employee
4. Schedule 4 - Reference Letter: Agreed form of reference letter when applicable
5. Schedule 5 - Company Property: List of company property to be returned
6. Schedule 6 - Continuing Obligations: Details of surviving terms from employment contract
7. Appendix A - Tax Calculations: Detailed tax calculations and assumptions
8. Appendix B - Benefits Summary: Summary of any continuing benefits or benefit settlements
Authors
Appointment Letter
Board
Business Day
Claims
Company
Company Property
Confidential Information
Effective Date
Employee
Employment
Employment Contract
Group
Group Company
Hong Kong
Intellectual Property Rights
Legal Costs
MPF
Parent Company
Parties
Payment Date
Reference
Related Person
Release
Settled Claims
Settlement Sum
Statutory Entitlements
Surviving Provisions
Tax
Termination Date
Third Party Rights
Waiver
Settlement Payment
Payment Terms
Tax Treatment
General Release and Waiver
Confidentiality
Non-disparagement
Company Property Return
Post-termination Restrictions
Intellectual Property Rights
Data Protection
References
Legal Costs
Warranties and Representations
Announcements
Further Assurance
Severability
Variation
Assignment
Third Party Rights
Notices
Counterparts
Entire Agreement
Governing Law and Jurisdiction
Financial Services
Technology
Manufacturing
Professional Services
Retail
Healthcare
Education
Real Estate
Construction
Hospitality
Transportation
Energy
Telecommunications
Media and Entertainment
Insurance
Human Resources
Legal
Finance
Compliance
Executive Management
Operations
Administration
Corporate Secretarial
Risk Management
Internal Audit
Payroll
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Managing Director
Director
Senior Manager
Manager
Executive
Senior Associate
Associate
Administrator
Supervisor
Team Leader
Department Head
Regional Manager
Country Manager
Vice President
Senior Vice President
Human Resources Director
Operations Manager
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