The Liquidation Letter To Employees is a crucial document used when a company in Hong Kong enters either voluntary or compulsory liquidation proceedings. It serves as the primary formal communication channel between the appointed liquidator and the company's employees, ensuring compliance with Hong Kong's employment and insolvency laws. The letter must be issued promptly upon the commencement of liquidation proceedings and needs to address various aspects including termination of employment, outstanding entitlements, claims procedures, and practical arrangements. This document is essential for protecting both the employees' interests and the company's legal obligations during the liquidation process, while also facilitating efficient administration of the liquidation proceedings. The content and format must comply with Hong Kong's legal requirements, particularly the Employment Ordinance and Companies (Winding Up and Miscellaneous Provisions) Ordinance, while maintaining clear communication with employees during this challenging transition.
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1. Company Letterhead and Date: Official company letterhead with registered address and date of the letter
2. Employee Address Block: Individual employee's name and address details
3. Notification of Liquidation: Clear statement about the company entering liquidation and appointment of liquidators
4. Termination of Employment: Formal notice of employment termination, including the effective date
5. Outstanding Payments and Entitlements: Overview of wages, severance, long service payment, annual leave, and other entitlements due
6. Claims Process: Explanation of how to submit claims and the role of the Protection of Wages on Insolvency Fund
7. Return of Company Property: Instructions regarding company assets, documents, and access cards
8. Final Documentation: Information about reference letters, tax forms, and MPF arrangements
9. Contact Information: Details of liquidator and relevant contact persons for queries
10. Closing and Signature: Expression of gratitude and regret, with liquidator's signature
1. Continuation of Specific Projects: Used when certain employees are required to continue working during the liquidation process
2. Transfer of Employment: Included when there are possibilities of employment transfer to other entities
3. International Employee Provisions: Required for employees with cross-border employment arrangements
4. Visa and Immigration Status: Necessary for employees on work visas sponsored by the company
5. Confidentiality Obligations: Reminder of ongoing confidentiality obligations, if applicable
6. Employee Assistance Program: Information about available support services, if provided
1. Schedule A - Entitlements Calculation: Detailed breakdown of individual employee's entitlements and calculations
2. Schedule B - Claim Form Templates: Required forms for submitting claims to liquidator and PWIF
3. Schedule C - Important Dates and Deadlines: Timeline for claims submission and key liquidation milestones
4. Schedule D - Document Checklist: List of required documents for processing claims and entitlements
5. Appendix 1 - FAQ: Common questions and answers about the liquidation process and employee rights
6. Appendix 2 - Useful Contacts: List of relevant government departments, funds, and support services
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