Employment Contract With Equity for Hong Kong

Employment Contract With Equity Template for Hong Kong

A comprehensive employment agreement governed by Hong Kong law that combines standard employment terms with equity compensation provisions. The document incorporates mandatory requirements under Hong Kong employment legislation while detailing the terms of equity participation, typically through share options or restricted stock units. It addresses key aspects including employment duties, compensation, benefits, equity vesting schedules, termination provisions, and post-employment obligations, all structured to comply with Hong Kong's Employment Ordinance and Securities and Futures Ordinance.

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What is a Employment Contract With Equity?

This Employment Contract With Equity is designed for use in Hong Kong when hiring senior employees or key personnel who will receive equity compensation as part of their remuneration package. The document combines traditional employment terms required under Hong Kong law with detailed equity participation provisions, making it particularly suitable for startups, growth companies, and established corporations offering share-based incentives. It ensures compliance with Hong Kong's employment, securities, and companies legislation while providing flexibility to accommodate various equity structures such as share options, restricted stock units, or direct share ownership. The contract is typically used for roles where alignment between employee and shareholder interests is crucial, and often includes comprehensive provisions for protecting company interests through confidentiality, intellectual property assignment, and post-termination restrictions.

What sections should be included in a Employment Contract With Equity?

1. Parties: Identification of the employer company and the employee

2. Background: Context of the employment relationship and agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Term: Position, duties, and duration of employment

5. Duties and Responsibilities: Detailed description of the employee's role and obligations

6. Place of Work: Primary workplace location and any mobility requirements

7. Hours of Work: Working hours, overtime arrangements, and flexibility requirements

8. Remuneration: Base salary, payment frequency, and review process

9. Equity Compensation: Details of share options or other equity arrangements

10. Benefits: Standard benefits package including insurance, MPF, and leave entitlements

11. Holidays and Leave: Annual leave, sick leave, and other types of leave

12. Termination: Notice periods and grounds for termination

13. Post-Termination Obligations: Confidentiality, non-compete, and other post-employment restrictions

14. Intellectual Property: Ownership of IP created during employment

15. Confidentiality: Protection of company confidential information

16. Data Protection: Handling of personal data and privacy requirements

17. Governing Law: Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Employment Contract With Equity?

1. Probation Period: Include if there is an initial probation period

2. Commission Structure: Include for sales roles or positions with variable compensation

3. Bonus Arrangements: Include if discretionary or guaranteed bonuses are part of compensation

4. International Mobility: Include if role requires travel or international assignments

5. Garden Leave: Include for senior executives or sensitive positions

6. Change of Control: Include for senior positions to address company ownership changes

7. Clawback Provisions: Include for senior executives or regulated positions

8. Secondment Terms: Include if employee may be seconded to other group companies

What schedules should be included in a Employment Contract With Equity?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting lines

2. Schedule 2 - Equity Plan Rules: Terms and conditions of the equity compensation plan

3. Schedule 3 - Share Option Details: Specific terms of share options including vesting schedule and exercise price

4. Schedule 4 - Benefits Package: Detailed description of all employee benefits

5. Schedule 5 - Company Policies: List of applicable company policies and procedures

6. Appendix A - Confidential Information: Definition and examples of confidential information

7. Appendix B - Restricted Activities: Details of post-employment restrictions and non-compete obligations

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Financial Services

Professional Services

E-commerce

Telecommunications

Biotechnology

Real Estate

Manufacturing

Media and Entertainment

Healthcare

Consulting

Software Development

Fintech

Retail

Startup

Relevant Teams

Human Resources

Legal

Finance

Executive Management

Information Technology

Research and Development

Sales

Operations

Product Development

Business Development

Engineering

Marketing

Strategy

Investment

Corporate Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technology Officer

Chief Operating Officer

Senior Vice President

Vice President

Director

Senior Manager

Department Head

Technical Lead

Senior Software Engineer

Product Manager

Sales Director

Regional Manager

General Manager

Head of Operations

Principal Consultant

Senior Associate

Investment Manager

Research Director

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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