The Redundancy Termination Letter is a crucial document used in Hong Kong when an organization needs to terminate employment due to redundancy situations, such as business restructuring, downsizing, or closure of operations. The document must comply with the Hong Kong Employment Ordinance (Cap. 57) and related employment legislation, ensuring proper handling of statutory entitlements including severance payments, notice periods, and treatment of benefits. This letter serves as official documentation of the redundancy process and should be carefully drafted to include all necessary information while maintaining professionalism and clarity. It's essential for risk management and maintaining proper documentation of the termination process, while ensuring all legal obligations under Hong Kong law are met.
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1. Date and Address Block: Current date and employee's full name and address
2. Subject Line: Clear indication that this is a redundancy termination notice
3. Redundancy Notification: Clear statement of the redundancy decision and effective date
4. Reason for Redundancy: Brief explanation of the business circumstances leading to redundancy
5. Last Working Day: Specification of the employee's final working day and any garden leave arrangements
6. Payment Entitlements: Details of final salary, notice pay, and statutory severance payment
7. Outstanding Leave: Information about payment for accrued but unused annual leave
8. MPF Arrangements: Information about the handling of MPF benefits
9. Return of Company Property: Instructions regarding the return of company property
10. Reference Letter: Confirmation that a reference letter will be provided
11. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
12. Contact Information: HR contact details for queries
13. Signature Block: Space for employer's signature and employee acknowledgment
1. Outplacement Support: Include when the company offers career transition services
2. Medical Benefits Extension: Include when offering extended medical coverage
3. Outstanding Loans: Include when there are company loans to be settled
4. Share Options/Long-term Incentives: Include when employee has outstanding share options or LTIs
5. Bonus Pro-rata: Include when addressing pro-rated bonus payments
6. Non-compete Reminder: Include when employee is bound by post-employment restrictions
7. Continuation of Benefits: Include when certain benefits will continue post-employment
1. Payment Calculation Schedule: Detailed breakdown of all payment components including severance pay calculation
2. Benefits Summary: Summary of all benefits and their treatment post-termination
3. Company Property Checklist: List of company property to be returned
4. Important Dates Schedule: Timeline of important dates including last day, payment dates, and benefits end dates
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