Employee Compensation Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Employee Compensation Agreement

I need an Employee Compensation Agreement for a new Chief Technology Officer position in Hong Kong, starting March 2025, including provisions for equity compensation, annual bonus structure, and international travel allowance.

Document background
The Employee Compensation Agreement is a fundamental document in Hong Kong employment relationships, essential for clearly defining and documenting the financial aspects of employment. It should be used when hiring new employees or updating compensation terms for existing staff, particularly for positions with complex compensation structures or senior roles. The agreement must comply with Hong Kong's Employment Ordinance, Employees' Compensation Ordinance, and other relevant employment legislation. It typically includes detailed provisions on base salary, bonuses, benefits, allowances, and any special compensation arrangements, while ensuring alignment with statutory requirements such as Mandatory Provident Fund contributions and minimum wage regulations. This document serves as a key reference point for both employers and employees, helping prevent future disputes and ensuring transparency in compensation matters.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Position title, employment status (permanent/fixed-term), and commencement date

5. Duties and Responsibilities: Main job duties, reporting relationships, and work expectations

6. Place of Work: Primary workplace location and any flexibility arrangements

7. Hours of Work: Standard working hours, overtime arrangements, and rest day provisions

8. Compensation Structure: Base salary, payment frequency, and method of payment

9. Benefits: Mandatory and standard company benefits including MPF, medical insurance, and leave entitlements

10. Probation Period: Length of probation and assessment criteria

11. Termination: Notice periods and grounds for termination

12. Confidentiality: Protection of company confidential information

13. Governing Law: Specification of Hong Kong law as governing law

14. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties

Optional Sections

1. Bonus and Incentive Schemes: Details of any performance-based compensation, used for roles eligible for variable pay

2. Share Options: Terms of any share option schemes, typically for senior executives

3. Non-Competition: Post-employment restrictions, typically for senior roles or those with access to sensitive information

4. Intellectual Property: IP assignment provisions, essential for creative or technical roles

5. Overseas Travel: Travel requirements and compensation, for roles requiring business travel

6. Flexible Working Arrangements: Remote work or flexible hours provisions, for roles with non-standard working arrangements

7. Commission Structure: Commission calculation and payment terms, for sales roles

8. Training Requirements: Mandatory training and professional development commitments, for regulated roles or specialized positions

9. Data Protection: Enhanced privacy provisions, for roles handling sensitive data

Suggested Schedules

1. Schedule 1 - Job Description: Detailed description of role responsibilities and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components and payment structure

3. Schedule 3 - Benefits Summary: Comprehensive list of benefits and eligibility criteria

4. Schedule 4 - Company Policies: Key company policies that form part of the employment terms

5. Schedule 5 - Performance Metrics: KPIs and performance evaluation criteria

6. Appendix A - Statutory Benefits: Summary of statutory benefits under Hong Kong law

7. Appendix B - Confidential Information: Definition and examples of confidential information

8. Appendix C - Bonus Calculation: Detailed bonus calculation methodology if applicable

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Technology

Manufacturing

Retail

Professional Services

Healthcare

Education

Real Estate

Construction

Hospitality

Logistics

Media and Entertainment

Telecommunications

Insurance

Banking

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Product Development

Customer Service

Business Development

Administration

Compliance

Risk Management

Corporate Communications

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Senior Manager

Department Head

Sales Director

Technical Lead

Software Engineer

Account Manager

Financial Analyst

Human Resources Manager

Operations Manager

Project Manager

Research Analyst

Marketing Executive

Legal Counsel

Business Development Manager

Product Manager

Data Scientist

Investment Banker

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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