The Severance Letter to Employee is a crucial document used in Hong Kong employment terminations to formally communicate and document the end of an employment relationship. It must comply with the Hong Kong Employment Ordinance (Cap. 57) and other relevant employment legislation. This document is typically used when an employee's position becomes redundant, when a business undergoes restructuring, or in other situations where severance payment is required under Hong Kong law. The letter includes specific details about termination timing, severance calculations, final payments, benefit arrangements, and post-employment obligations. It serves both as a formal communication tool and a legal document that protects both employer and employee interests by clearly stating all termination terms and conditions.
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1. Letter Header: Company letterhead, date, and employee's full name and address
2. Subject Line: Clear indication that this is a severance letter
3. Confirmation of Termination: Clear statement of employment termination, including last working day and whether notice period applies
4. Reason for Termination: Brief, factual statement of the reason for termination if appropriate
5. Final Payment Details: Breakdown of final payment including salary, severance pay, unused annual leave, and any other entitlements
6. Company Property: List of company property to be returned and process for return
7. Benefits Termination: Information about the termination of benefits, including medical coverage and MPF arrangements
8. Reference Policy: Company's policy regarding providing references
9. Acknowledgment: Space for employee signature acknowledging receipt and understanding
10. Contact Information: Details of who to contact for queries or further information
1. Garden Leave: Include when employee is placed on garden leave during notice period
2. Post-Employment Restrictions: Include when reminding employee of existing non-compete or confidentiality obligations
3. Outplacement Support: Include when company is offering career transition assistance
4. Release Agreement: Include when requesting employee to sign a release of claims
5. Special Arrangements: Include for any special termination package or arrangements
6. Continuation of Benefits: Include when certain benefits will continue post-employment
7. Exit Interview: Include when arranging for an exit interview
1. Schedule A - Payment Calculation: Detailed calculation of severance pay and all final payments
2. Schedule B - Company Property Inventory: Detailed list of company property to be returned
3. Schedule C - Benefit Entitlements: Detailed information about benefit termination dates and any conversion rights
4. Schedule D - Post-Employment Obligations: Copy of relevant clauses from employment contract regarding post-employment obligations
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