The Employment Transfer Agreement is a crucial document used in Hong Kong business transactions where employees need to be transferred from one employer to another, typically during corporate restructurings, mergers, acquisitions, or business transfers. It ensures compliance with Hong Kong employment laws while protecting both employer and employee interests. The agreement addresses key aspects such as continuity of employment, preservation of terms and conditions, transfer of benefits and entitlements, and handling of employee data. It includes specific provisions required under Hong Kong law, including compliance with the Employment Ordinance, Mandatory Provident Fund requirements, and data privacy regulations. This document is essential for maintaining clear employment relationships and preventing disputes during transition periods.
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1. Parties: Identifies the current employer (transferor), new employer (transferee), and employee(s)
2. Background: Sets out the context of the transfer and the intention to transfer employment
3. Definitions: Defines key terms used throughout the agreement
4. Transfer of Employment: Core terms regarding the transfer of employment relationship from current to new employer
5. Effective Date: Specifies when the transfer takes effect
6. Continuity of Employment: Confirms that employment is continuous and previous service is recognized
7. Terms and Conditions of Employment: Details of employment terms that will transfer or any variations
8. Employee Benefits and Entitlements: Handling of existing benefits, accrued rights, and entitlements
9. Statutory Rights and Obligations: Compliance with Hong Kong employment laws and statutory requirements
10. Data Protection and Privacy: Handling of employee personal data during the transfer
11. Representations and Warranties: Key statements and guarantees by all parties
12. Governing Law and Jurisdiction: Confirms Hong Kong law governs the agreement
13. Execution: Signature blocks and execution requirements
1. Post-Transfer Obligations: Specific obligations of the new employer after the transfer, used when special commitments are required
2. Treatment of Outstanding Claims: Handling of existing employee claims or disputes, included when there are ongoing issues
3. Intellectual Property Rights: Transfer of IP obligations and rights, needed when IP is a significant aspect of employment
4. Non-compete and Confidentiality: Transfer of existing restrictions, included when such obligations exist
5. Pension and MPF Arrangements: Detailed handling of retirement benefits, needed for complex benefit structures
6. Group Benefits and Insurance: Transfer of insurance and group benefits, included for senior employees or complex benefit packages
7. Transitional Arrangements: Temporary measures during transfer period, needed for complex transfers
8. Employee Consultation: Details of employee consultation process, included when formal consultation was required
1. Schedule 1 - Transferring Employees: List of employees being transferred with their key employment details
2. Schedule 2 - Current Terms and Conditions: Detailed current employment terms and benefits
3. Schedule 3 - New Terms and Conditions: Any variations to employment terms post-transfer
4. Schedule 4 - Outstanding Entitlements: List of accrued benefits, leave, and other entitlements
5. Schedule 5 - Employee Benefits: Detailed description of all benefit schemes and their treatment
6. Appendix A - Required Notices and Consents: Copies of relevant notices and employee consents
7. Appendix B - Transfer Timeline: Detailed timeline of transfer process and key dates
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