The Employee Termination Agreement and Release is a crucial document used in Hong Kong when employment relationships are being terminated by mutual consent or as part of a negotiated exit. It serves as a comprehensive record of the termination arrangements while providing legal protection for both parties. The document is particularly important in Hong Kong's business environment, where employment relationships are governed by strict statutory requirements under the Employment Ordinance (Cap. 57) and related legislation. This agreement typically comes into play during corporate restructuring, voluntary departures, or negotiated exits, particularly for middle to senior-level employees. It includes essential details about final payments, benefits, confidentiality obligations, and releases, while ensuring compliance with Hong Kong's employment laws and regulations. The agreement is designed to prevent future disputes by clearly documenting all aspects of the termination arrangement.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, reason for termination, and context for the agreement
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Termination Date: Specific date of employment termination and last day of work
5. Final Payment Terms: Details of salary, unused leave, and other entitlements up to the termination date
6. Severance Package: Breakdown of ex-gratia payments, severance pay, and other termination benefits
7. Tax Treatment: Classification of payments for tax purposes and responsibilities for tax payments
8. Company Property: Requirements for return of company property and confidential information
9. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets
10. Release and Waiver: Mutual release of claims and legal rights, subject to Hong Kong law limitations
11. Post-Termination Obligations: Continuing obligations including non-disparagement and references
12. Governing Law: Specification of Hong Kong law as governing law and jurisdiction
13. Entire Agreement: Confirmation that this agreement represents the complete understanding between parties
1. Garden Leave: Terms of garden leave if applicable during notice period
2. Restrictive Covenants: Non-compete and non-solicitation provisions if required and enforceable
3. Legal Representation: Acknowledgment that parties had opportunity to seek independent legal advice
4. Outplacement Support: Details of any career transition or outplacement services provided
5. Medical Benefits Extension: Terms for continuing medical coverage if offered
6. Share Options/Awards: Treatment of outstanding share options or equity awards
7. Reference Letter: Terms regarding the provision of employment references
8. Cooperation Clause: Requirements for employee assistance in transition or future legal matters
9. Immigration Status: Implications for work visa or immigration status if employee is a foreign national
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including statutory and ex-gratia amounts
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Benefits Summary: Summary of benefits and their treatment post-termination
4. Appendix A - Release Terms: Detailed terms of the release and waiver of claims
5. Appendix B - Confidential Information: Specific definition and scope of confidential information
6. Appendix C - Reference Letter Template: Agreed format and content of reference letter if applicable
Relevant legal definitions
Agreement
Company
Confidential Information
Claims
Effective Date
Employee
Employment Contract
Final Payment
Group Companies
Intellectual Property Rights
Notice Period
Parties
Release
Restrictive Covenants
Severance Payment
Termination Date
Trade Secrets
Company Property
Outstanding Benefits
Continuing Obligations
Statutory Entitlements
Ex-gratia Payment
MPF Benefits
Release Period
Accrued Rights
Related Companies
Confidentiality Obligations
Business Day
Hong Kong
Governing Law
Company
Confidential Information
Claims
Effective Date
Employee
Employment Contract
Final Payment
Group Companies
Intellectual Property Rights
Notice Period
Parties
Release
Restrictive Covenants
Severance Payment
Termination Date
Trade Secrets
Company Property
Outstanding Benefits
Continuing Obligations
Statutory Entitlements
Ex-gratia Payment
MPF Benefits
Release Period
Accrued Rights
Related Companies
Confidentiality Obligations
Business Day
Hong Kong
Governing Law
Clauses
Interpretation
Termination
Final Payments
Severance
Tax
Company Property Return
Confidentiality
Non-Disclosure
Data Protection
Intellectual Property
Non-Competition
Non-Solicitation
Release and Waiver
Legal Claims
References
Non-Disparagement
Post-Termination Obligations
Cooperation
Benefits
Share Options
Garden Leave
Governing Law
Jurisdiction
Entire Agreement
Severability
Amendment
Counterparts
Notices
Third Party Rights
Assignment
Waiver
Force Majeure
Legal Costs
Immigration Status
Acknowledgment
Termination
Final Payments
Severance
Tax
Company Property Return
Confidentiality
Non-Disclosure
Data Protection
Intellectual Property
Non-Competition
Non-Solicitation
Release and Waiver
Legal Claims
References
Non-Disparagement
Post-Termination Obligations
Cooperation
Benefits
Share Options
Garden Leave
Governing Law
Jurisdiction
Entire Agreement
Severability
Amendment
Counterparts
Notices
Third Party Rights
Assignment
Waiver
Force Majeure
Legal Costs
Immigration Status
Acknowledgment
Relevant Industries
Financial Services
Banking
Technology
Manufacturing
Retail
Professional Services
Healthcare
Education
Real Estate
Construction
Logistics
Hospitality
Media and Entertainment
Telecommunications
Insurance
Consulting
Relevant Teams
Human Resources
Legal
Finance
Operations
Information Technology
Sales
Marketing
Research and Development
Administration
Customer Service
Product Development
Corporate Communications
Compliance
Risk Management
Business Development
Strategy
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Managing Director
Department Head
Senior Manager
Project Manager
Account Manager
Sales Executive
Software Developer
Business Analyst
Marketing Manager
Operations Manager
Human Resources Manager
Financial Controller
Regional Director
General Manager
Technical Lead
Research Analyst
Administrative Officer
Legal Counsel
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