The Separation Letter is a crucial document used in Hong Kong employment contexts to formalize the termination of employment relationships. It serves as an official record of the separation terms and conditions, ensuring compliance with Hong Kong's Employment Ordinance and related legislation. This document is typically used when employment is terminated by mutual agreement, resignation, or employer-initiated termination, excluding cases of summary dismissal. The Separation Letter includes essential information such as the termination date, final payment details, benefits arrangements, and post-employment obligations. It helps prevent future disputes by clearly documenting all separation terms and ensuring both parties understand their rights and obligations. The document must be carefully drafted to comply with Hong Kong employment law requirements while protecting the interests of both the employer and employee.
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1. Letterhead and Date: Company letterhead, date, and employee's contact details
2. Opening and Confirmation of Termination: Formal opening, reference to previous discussions if any, and clear statement of employment termination
3. Last Working Day: Specification of the final working day and any notice period details
4. Final Payment Details: Breakdown of final salary, unused leave, and any statutory payments
5. Company Property: Requirements for returning company property and documents
6. Confidentiality Obligations: Reminder of ongoing confidentiality obligations
7. Reference Policy: Company's approach to providing references
8. Full and Final Settlement: Statement confirming that the terms represent full and final settlement
9. Acknowledgment: Space for employee signature acknowledging receipt and acceptance
1. Garden Leave Arrangements: Used when employee is required to serve notice period away from office
2. Post-termination Restrictions: Include if there are specific non-compete or non-solicitation clauses to reference
3. Outstanding Bonus/Commission: Required if employee has pending bonus or commission payments
4. Medical Benefits Extension: Include if offering extended medical coverage
5. Share Options/Awards: Required if employee has outstanding share options or awards
6. Outplacement Support: Include if company is offering career transition services
7. Legal Fee Contribution: Include if company is contributing to legal fees for reviewing the letter
1. Schedule of Final Payments: Detailed breakdown of all final payments including salary, leave, bonuses, and statutory payments
2. Company Property Checklist: List of company property to be returned including IT equipment, access cards, etc.
3. Benefits Summary: Summary of benefit arrangements and cut-off dates
4. MPF Statement: Details of MPF (Mandatory Provident Fund) arrangements and final contributions
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