The Separation and Release Agreement is a crucial document used in Hong Kong employment contexts when terminating employment relationships by mutual agreement. It serves multiple purposes: documenting the terms of separation, protecting both parties' interests, ensuring compliance with Hong Kong employment laws, and preventing future disputes. The agreement typically becomes relevant during corporate restructuring, voluntary departures, or negotiated exits. It must comply with Hong Kong's Employment Ordinance and related legislation, covering statutory requirements while also addressing practical aspects such as confidentiality, property return, and post-employment obligations. The document is particularly important in Hong Kong's business environment, where employment protection is strong and proper documentation of separation terms is essential for risk management.
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1. Parties: Identification of the employer and employee
2. Background: Brief recital of employment history and context of separation
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specification of the employment end date and final working day arrangements
5. Separation Payments: Details of all payments including statutory entitlements, ex-gratia payments, and payment timing
6. Tax and MPF: Treatment of tax and MPF contributions on separation payments
7. Company Property: Requirements for return of company property and documents
8. Confidentiality: Ongoing obligations regarding confidential information
9. Release of Claims: Mutual release of claims between parties
10. Continuing Obligations: Surviving terms from employment contract
11. Non-Disparagement: Mutual obligations not to make negative statements
12. Cooperation: Employee's agreement to assist with transition and future inquiries
13. Entire Agreement: Integration clause confirming complete agreement
14. Governing Law: Hong Kong law as governing law and jurisdiction
15. Execution: Signature blocks and execution requirements
1. Garden Leave: Used when employee is placed on paid leave during notice period
2. Equity/Share Options: Include when dealing with existing share options or equity arrangements
3. Non-Compete/Non-Solicit: When post-termination restrictions are required
4. Reference: Terms regarding future employment references
5. Announcement: Agreement on internal/external communication about departure
6. Legal Costs: When employer agrees to contribute to employee's legal costs
7. Outplacement Support: When career transition services are provided
8. Medical Benefits: When post-termination medical coverage is provided
9. International Provisions: For employees with multi-jurisdictional employment aspects
1. Schedule of Payments: Detailed breakdown of all separation payments and benefits
2. Company Property List: Itemized list of company property to be returned
3. Continuing Obligations: Extract of relevant clauses from employment contract that survive
4. Release Details: Specific claims being released and exceptions
5. Certificate of Independent Legal Advice: Confirmation of legal advice received by employee
6. Resignation Letter: Form of resignation letter to be signed
7. Director Resignations: Required forms for resignation from director positions if applicable
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