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What is a Transfer Letter?

A Transfer Letter formally documents the reassignment of an employee from one position or department to another within the same company in Hong Kong. It outlines key changes like the new role, reporting relationships, and any adjustments to salary or benefits while confirming the employee's continued service with the organization.

Under Hong Kong employment law, these letters help protect both employer and employee interests by clearly stating transfer terms and maintaining employment continuity. They're especially important in large corporations and civil service departments, where internal mobility needs proper documentation to comply with HR policies and employment regulations.

When should you use a Transfer Letter?

Use a Transfer Letter anytime you move an employee to a different role, department, or location within your Hong Kong organization. This includes lateral moves, restructuring situations, and temporary reassignments lasting more than a few weeks. The letter becomes especially crucial when the transfer involves changes in reporting lines, work responsibilities, or compensation terms.

Many organizations prepare Transfer Letters during annual rotation programs, office relocations, or when responding to staffing gaps across departments. Having this documentation ready before the transfer takes effect helps prevent misunderstandings about new roles and protects your company if employment disputes arise later.

What are the different types of Transfer Letter?

  • Authorization Letter For Transfer Of Ownership: Used for transferring asset ownership rights, particularly common in property and vehicle transfers
  • Transfer Of Trademark Agreement: Specialized version for intellectual property transfers, focusing on trademark rights and associated goodwill
  • Departmental Transfer Letter: Documents internal job moves with unchanged employment terms
  • Promotional Transfer Letter: Combines position change with new responsibilities and compensation details
  • Temporary Assignment Letter: Outlines short-term transfers with specific duration and return conditions

Who should typically use a Transfer Letter?

  • HR Managers: Draft and process Transfer Letters, ensure compliance with employment regulations, and maintain personnel records
  • Department Heads: Initiate transfer requests, approve role changes, and specify new responsibilities or reporting structures
  • Transferring Employees: Review and acknowledge transfer terms, including any changes to duties, location, or benefits
  • Legal Teams: Review complex transfers, especially those involving contractual changes or cross-subsidiary moves
  • Payroll Department: Implements any salary adjustments and updates compensation records based on transfer terms

How do you write a Transfer Letter?

  • Basic Details: Gather employee name, ID number, current position, and new role information
  • Transfer Specifics: Document new department, reporting structure, work location, and effective date
  • Terms Review: List any changes to salary, benefits, working hours, or responsibilities
  • Compliance Check: Verify alignment with company policies and Hong Kong employment regulations
  • Approvals: Obtain sign-off from both current and receiving department heads
  • Documentation: Prepare two copies - one for HR records and one for the employee

What should be included in a Transfer Letter?

  • Employee Information: Full name, ID number, current position, and employment start date
  • Transfer Details: New role, department, location, and effective date of transfer
  • Employment Terms: Confirmation of continued service and any changes to compensation or benefits
  • Reporting Structure: New supervisor details and organizational hierarchy
  • Working Conditions: Updated work hours, duties, and performance expectations
  • Acknowledgment Section: Space for employee signature, date, and company authorized signatory
  • Governing Law: Reference to Hong Kong employment regulations and company policies

What's the difference between a Transfer Letter and a Transfer Request Letter?

A Transfer Letter differs significantly from a Transfer Request Letter in both purpose and timing within the employee transfer process. While they're often confused, understanding their distinct roles helps ensure proper documentation of internal moves.

  • Purpose and Timing: A Transfer Letter is an official document confirming an approved transfer, while a Transfer Request Letter initiates the process by asking for consideration
  • Legal Weight: Transfer Letters serve as binding amendments to employment terms, whereas Request Letters are formal applications without contractual force
  • Content Focus: Transfer Letters detail new terms, responsibilities, and conditions; Request Letters explain motivations and qualifications for the desired move
  • Signatories: Transfer Letters require signatures from management and HR, while Request Letters only need the employee's signature

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