The Employee Termination Agreement And Mutual Release is a crucial document used in Hong Kong employment situations where both employer and employee wish to formally document the end of their employment relationship and mutually release each other from potential claims. It is particularly valuable in situations involving senior employees, sensitive departures, or where there are complex compensation arrangements to be settled. The agreement must comply with Hong Kong employment law, including the Employment Ordinance and various anti-discrimination ordinances. It typically includes provisions for final payments, statutory entitlements, post-termination obligations, and comprehensive releases. This document is essential for risk management and providing clarity and certainty for both parties during the termination process.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief history of employment relationship, reason for termination agreement, and current circumstances
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specification of the employment termination date and final working day
5. Payment of Wages and Statutory Entitlements: Details of final salary, statutory entitlements, and payment timing
6. Termination Payment: Details of any ex-gratia or additional payments beyond statutory requirements
7. Return of Company Property: Requirements for returning company assets, documents, and data
8. Confidentiality Obligations: Ongoing confidentiality obligations post-termination
9. Mutual Release: Comprehensive mutual release of claims between parties
10. Post-Termination Restrictions: Confirmation of continuing post-termination restrictions from employment contract
11. Tax Implications: Statement on tax treatment of payments and responsibilities
12. Full and Final Settlement: Confirmation that the agreement represents full and final settlement
13. Governing Law: Specification of Hong Kong law as governing law
14. Execution: Signature blocks and execution requirements
1. Legal Advice: Section confirming employee has received independent legal advice - used when significant rights are being waived
2. Reference: Terms regarding the provision of employment references - used when agreed as part of the termination
3. Announcement: Agreed form of internal/external announcement - used for senior employees or sensitive departures
4. Share Options/Awards: Treatment of outstanding share options or awards - used when employee has equity compensation
5. Medical Insurance: Continuation of medical benefits - used when extending medical coverage post-termination
6. Outplacement Support: Details of any outplacement services - used when such support is offered
7. Garden Leave: Terms of garden leave period - used when employee will not work during notice period
8. Resignation from Directorships: Terms for resignation from corporate positions - used for director-level employees
1. Schedule 1 - Payment Calculations: Detailed breakdown of all payments including statutory entitlements, ex-gratia payments, and deductions
2. Schedule 2 - Company Property: Inventory of company property to be returned
3. Schedule 3 - Continuing Obligations: List of relevant clauses from employment contract that survive termination
4. Schedule 4 - Form of Resignation Letter: Template resignation letter for corporate positions if applicable
5. Appendix A - Employee Benefits Statement: Statement of treatment of various employee benefits post-termination
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Professional Services
Healthcare
Education
Construction
Hospitality
Telecommunications
Real Estate
Media and Entertainment
Transportation and Logistics
Energy and Utilities
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Research and Development
Administration
Customer Service
Product Development
Business Development
Risk and Compliance
Strategy
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Director
Senior Manager
Manager
Executive
Professional
Supervisor
Senior Associate
Associate
Administrator
Specialist
Coordinator
Officer
General Staff
Department Head
Vice President
Regional Manager
Technical Lead
Project Manager
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