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A Separation Agreement is a legally binding contract between an employer and departing employee in Hong Kong that outlines the terms of their employment ending. It typically covers final salary payments, benefits settlements, and any post-employment obligations like confidentiality or non-compete clauses.

These agreements help protect both parties by clearly documenting severance packages, preventing future disputes, and ensuring compliance with Hong Kong's Employment Ordinance requirements. Many companies use them during restructuring, voluntary departures, or when offering enhanced exit packages beyond statutory minimums.

Use a Separation Agreement when ending employment relationships on mutually agreed terms, especially for senior executives or during sensitive departures. These agreements become crucial during company restructuring, voluntary redundancy programs, or when offering enhanced severance packages beyond Hong Kong's statutory requirements.

They're particularly valuable when protecting confidential information, managing potential disputes, or setting clear terms for post-employment obligations. Many Hong Kong employers implement them during leadership transitions, department reorganizations, or when terminating employees who have access to trade secrets or strategic information.

• Legal Separation Contract: Standard version covering basic termination terms, final payments, and confidentiality
• Employee Loan Promissory Note: Specialized Separation Agreement that includes provisions for outstanding employee loans or advances
• Executive Separation Agreements: Enhanced versions with complex compensation structures and extensive post-employment restrictions
• Mass Redundancy Agreements: Standardized templates for group layoffs with uniform severance terms
• Project-based Separation Agreements: Tailored for fixed-term contract completions with specific deliverable handover requirements

• Employers: HR departments and company management who initiate and draft agreements during terminations or restructuring
• Departing Employees: Staff members leaving the organization who negotiate and sign these agreements, often senior executives or key personnel
• Legal Counsel: In-house or external lawyers who review and refine agreement terms to ensure compliance with Hong Kong employment laws
• HR Consultants: Specialists who advise on severance packages and standard market practices
• Labor Department Officials: Government representatives who may review agreements in dispute cases or collective redundancy situations

• Employment Details: Gather complete records of salary, benefits, bonuses, and employment duration
• Termination Terms: Document the agreed departure date, reason for separation, and any notice period requirements
• Payment Calculations: Calculate all final payments including severance, unused leave, and pro-rated bonuses under Hong Kong law
• Post-Employment Obligations: List any confidentiality requirements, non-compete clauses, or company property returns
• Compliance Check: Review against the Employment Ordinance requirements and any applicable collective agreements
• Document Generation: Use our platform to create a legally-sound agreement that includes all mandatory elements

• Party Details: Full legal names and addresses of employer and employee, plus company registration details
• Separation Terms: Clear statement of termination date, reason, and mutual agreement to end employment
• Financial Terms: Detailed breakdown of final payments, including statutory entitlements under Hong Kong law
• Confidentiality: Specific obligations regarding company information and trade secrets
• Release Clauses: Mutual release from future claims, subject to Employment Ordinance provisions
• Execution Block: Signature spaces, witness requirements, and company chop placement
• Governing Law: Express statement that Hong Kong law governs the agreement

A Separation Agreement differs significantly from a Business Acquisition Agreement in purpose and scope, though both can involve major organizational changes. While Separation Agreements focus on ending employment relationships, Business Acquisition Agreements deal with company ownership transfers.

• Purpose and Timing: Separation Agreements handle immediate employment termination and post-employment obligations, while Business Acquisition Agreements manage long-term business ownership transitions
• Parties Involved: Separation Agreements are between employer and employee; Business Acquisition Agreements involve company sellers and buyers
• Legal Requirements: Separation Agreements must comply with Hong Kong's Employment Ordinance; Business Acquisition Agreements follow corporate and commercial law frameworks
• Financial Terms: Separation Agreements cover final salary, benefits, and severance; Business Acquisition Agreements detail purchase price, assets, and business transfer terms