The Downsizing Termination Letter is a crucial document used when organizations in Hong Kong undergo restructuring, downsizing, or redundancy exercises. It serves as the official written notification of employment termination, ensuring compliance with the Hong Kong Employment Ordinance (Cap. 57) and related legislation. This document is essential for proper documentation of the termination process, protecting both employer and employee interests by clearly stating termination terms, severance entitlements, and final settlement details. The letter should be used when termination is due to genuine redundancy or organizational restructuring, not for performance-related issues. It includes specific references to Hong Kong statutory requirements, calculation of severance payments, and handling of employee benefits, making it a vital tool for managing workforce reduction while maintaining legal compliance and professional standards.
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1. Letter Header: Company letterhead, date, reference number, and employee's details
2. Termination Notice: Clear statement of termination due to downsizing/redundancy, including the effective date
3. Reason for Termination: Brief explanation of the business circumstances leading to downsizing
4. Notice Period Details: Specification of notice period or payment in lieu of notice
5. Final Payment Details: Breakdown of final salary, severance payment, and other entitlements
6. Return of Company Property: List of company properties to be returned and process for return
7. Confidentiality Reminder: Reminder of ongoing confidentiality obligations
8. Reference and Future Employment: Information about providing references and job transition support
9. Contact Information: Details of who to contact for queries or assistance
10. Acknowledgment: Space for employee signature acknowledging receipt
1. Outplacement Support: Details of any career transition services offered by the company
2. Visa Status Impact: For foreign workers, information about how termination affects their visa status
3. Medical Benefits Extension: If applicable, information about post-termination medical coverage
4. Non-Compete Reminder: If employee is bound by non-compete clauses, reminder of these obligations
5. Pension/MPF Transfer: Special instructions regarding pension or MPF arrangements if applicable
6. Settlement Agreement: Reference to any additional settlement agreement if being offered
1. Schedule A - Payment Calculation: Detailed breakdown of final payment including severance calculation
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Benefits Summary: Summary of any continuing or terminating benefits
4. Appendix 1 - Handover Document: Template for documenting handover of work responsibilities
5. Appendix 2 - Exit Procedures: Checklist of exit procedures and timeline
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Professional Services
Healthcare
Education
Construction
Hospitality
Telecommunications
Media and Entertainment
Real Estate
Logistics and Transportation
Energy and Utilities
Relevant Teams
Human Resources
Legal
Finance
Operations
Administration
Corporate Communications
Compliance
Risk Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Human Resources Director
Legal Counsel
Department Manager
Senior Manager
Project Manager
Operations Manager
Administrative Officer
Financial Analyst
Software Developer
Marketing Executive
Sales Representative
Customer Service Representative
Research Analyst
Production Supervisor
Office Manager
Account Manager
Business Development Manager
Technical Support Specialist
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