The Confidential Separation Agreement is a vital document used when an employer and employee in Hong Kong mutually agree to terminate their employment relationship in a structured and confidential manner. It is particularly useful in situations involving senior employees, sensitive departures, or when there is a need to clearly document the terms of separation including financial arrangements, continuing obligations, and confidentiality requirements. The document ensures compliance with Hong Kong employment laws while protecting both parties' interests. It typically incorporates provisions required by the Employment Ordinance, Personal Data (Privacy) Ordinance, and other relevant Hong Kong legislation. This agreement is essential for risk management and provides clarity on post-employment obligations while maintaining confidentiality of the separation terms and company information.
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1. Parties: Identification of the employer and employee, including their registered addresses
2. Background: Brief context of the employment relationship and agreement to separate
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Termination Date', etc.
4. Termination of Employment: Specifics of the employment termination, including the effective date and final working day
5. Separation Payments: Details of all payments to be made, including final salary, severance, and any ex-gratia payments
6. Tax and MPF: Treatment of tax obligations and MPF arrangements
7. Company Property: Requirements for return of company property and confirmation of data deletion
8. Confidentiality Obligations: Detailed confidentiality provisions regarding the agreement and company information
9. Full and Final Settlement: Mutual release of claims and waiver of rights
10. Post-Termination Restrictions: Confirmation of continuing obligations under employment contract
11. General Provisions: Standard boilerplate clauses including governing law, entire agreement, etc.
1. Garden Leave: Include when employee is placed on garden leave during notice period
2. Share Options/Equity: Include when employee has share options or equity arrangements
3. Outplacement Support: Include when company provides career transition services
4. Reference: Include when agreed form of reference is to be provided
5. Continuing Cooperation: Include when employee needs to assist with handover or future inquiries
6. Medical Benefits: Include when extending medical coverage post-termination
7. Legal Fees: Include when employer contributes to employee's legal fees
8. Communications: Include when parties agree on specific internal/external communications about departure
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including salary, bonuses, and statutory entitlements
2. Schedule 2 - Company Property: List of company property to be returned
3. Schedule 3 - Continuing Obligations: Extract of relevant clauses from employment contract that survive termination
4. Schedule 4 - Agreed Form of Reference: Template of agreed reference letter if applicable
5. Schedule 5 - Outstanding Benefits: List of benefits and their treatment post-termination
6. Appendix A - Resignation Letter: Form of resignation letter to be signed by employee
7. Appendix B - Certificate of Compliance: Employee's confirmation of compliance with return of property and data deletion
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