Exit Agreement Template for Hong Kong

The Exit Agreement serves as a crucial document in Hong Kong employment relationships, typically used when employment is terminated by mutual agreement or as part of a negotiated departure. This document is essential for protecting both employer and employee interests by clearly defining the terms of separation, including financial settlements, continuing obligations, and mutual releases. The agreement must comply with Hong Kong employment law, including the Employment Ordinance and related legislation. Exit Agreements are particularly important in situations involving senior executives, sensitive positions, or where there are complex compensation arrangements, intellectual property concerns, or post-employment restrictions. The document helps prevent future disputes by providing a clear record of the agreed terms and ensuring all statutory and contractual obligations are properly addressed.

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

2. Background: Brief context of employment relationship, current position, and decision to terminate

3. Definitions: Key terms used throughout the agreement including Termination Date, Confidential Information, etc.

4. Termination of Employment: Formal statement of employment termination, including last day of employment and immediate obligations

5. Payment Provisions: Details of final salary, notice pay, statutory severance, and any ex-gratia payments

6. Tax and MPF: Treatment of tax obligations and final MPF arrangements

7. Company Property: Requirements for return of company property and documentation

8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

9. Post-Termination Restrictions: Reaffirmation of any post-employment restrictions including non-compete and non-solicitation

10. Full and Final Settlement: Mutual release of claims and waiver of rights

11. Reference and Announcements: Agreed form of reference and internal/external communications about departure

12. Governing Law and Jurisdiction: Specification of Hong Kong law and courts' jurisdiction

13. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability