Redundancy Notice Letter Template for Hong Kong

When your business faces restructuring, economic challenges, or operational changes in Hong Kong, you may need to issue a Redundancy Notice Letter to affected employees. This formal document serves as official notification of position elimination and must comply with Hong Kong's Employment Ordinance (Cap. 57) and related anti-discrimination legislation to protect both parties' interests.

When do you need this document?

You need a Redundancy Notice Letter when eliminating positions due to business closure, departmental restructuring, technological changes, or economic downturns. The document is required when redundancies result from genuine business needs rather than performance issues or misconduct. You must issue this notice whether providing working notice or payment in lieu, and it becomes essential documentation for Labour Department inquiries or potential employment tribunal proceedings. The letter is also necessary when multiple redundancies trigger consultation requirements under Hong Kong employment law.

Key legal considerations

Your redundancy notice must clearly state the business rationale and demonstrate that the selection process was fair and non-discriminatory under the Sex Discrimination Ordinance, Disability Discrimination Ordinance, and Race Discrimination Ordinance. Include accurate calculations of statutory entitlements, particularly severance payments under sections 31B-31M of the Employment Ordinance, which depend on length of service and monthly wages. The notice period must comply with contractual terms or statutory minimums, whichever is greater. Ensure you address final pay, accrued benefits, return of company property, and any restraint of trade clauses that remain in effect. Personal data handling must comply with the Personal Data (Privacy) Ordinance throughout the redundancy process.

Legal requirements in Hong Kong

Under the Employment Ordinance (Cap. 57), you must provide minimum notice periods ranging from seven days to three months depending on service length, or payment in lieu. Employees with at least 24 months of continuous service are entitled to severance payments calculated at two-thirds of monthly wages multiplied by years of service, subject to statutory caps. The redundancy must be genuine and based on legitimate business needs, not used to circumvent unfair dismissal protections. You must maintain detailed records of the selection criteria and decision-making process. If making 20 or more employees redundant within any 60-day period, additional consultation requirements apply. The notice must be in writing, clearly dated, and delivered in a manner that ensures receipt, with copies retained for employment records as required by Hong Kong labour authorities.