The Termination Without Cause Contract is essential in Hong Kong's employment landscape where employers may need to terminate employment relationships for business reasons unrelated to employee performance or misconduct. This document is typically used during organizational restructuring, downsizing, or strategic realignment, ensuring compliance with Hong Kong employment laws while providing clarity and protection for all parties involved. It incorporates mandatory requirements under the Hong Kong Employment Ordinance, including statutory notice periods, severance calculations, and final payment terms. The agreement is designed to minimize legal risks by clearly documenting the termination process, financial arrangements, and post-employment obligations, while facilitating a professional and amicable separation.
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1. Parties: Identification of the employer and employee, including their full legal names and addresses
2. Background: Brief context of the employment relationship, including start date and current position
3. Definitions: Key terms used throughout the agreement defined for clarity
4. Termination Date: Clear statement of the effective date of termination
5. Notice Period: Details of the notice period or payment in lieu of notice
6. Final Payment: Breakdown of final salary, accrued leave, and other statutory entitlements
7. Company Property: Requirements for return of company property and documents
8. Confidentiality: Ongoing obligations regarding confidential information
9. Release and Waiver: Mutual release of claims between parties
10. Governing Law: Specification of Hong Kong law as governing law
11. Entire Agreement: Clause stating this document represents the entire agreement regarding termination
1. Post-termination Restrictions: Non-compete and non-solicitation clauses, used for senior employees or those with access to sensitive information
2. Reference: Terms regarding the provision of employment references, if agreed
3. Gardening Leave: Provisions for garden leave during notice period, typically for senior positions
4. Outplacement Support: Details of any career transition services offered, common for senior executive terminations
5. Share Options/Benefits: Treatment of outstanding share options or long-term benefits, relevant for employees with equity compensation
6. Legal Fees: Agreement regarding payment of legal fees for review of the agreement, often included for senior executives
7. Tax Indemnity: Clauses regarding tax treatment of payments, particularly relevant for high-value settlements
8. Announcement: Terms regarding internal and external communication of the termination, important for senior roles
1. Schedule 1: Payment Calculation: Detailed breakdown of all payments including statutory and contractual entitlements
2. Schedule 2: Company Property List: Itemized list of company property to be returned
3. Schedule 3: Ongoing Benefits: Details of any benefits extending beyond termination date
4. Appendix A: Handover Plan: Timeline and responsibilities for handover of duties
5. Appendix B: Certificate of Compliance: Form confirming return of company property and compliance with termination terms
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Technology
Manufacturing
Retail
Professional Services
Healthcare
Education
Real Estate
Construction
Telecommunications
Media and Entertainment
Logistics and Transportation
Hospitality
Insurance
Relevant Teams
Human Resources
Legal
Finance
Operations
Sales
Marketing
Information Technology
Customer Service
Administration
Research and Development
Product Development
Corporate Communications
Compliance
Risk Management
Relevant Roles
Chief Executive Officer
Managing Director
Department Head
Senior Manager
Manager
Executive
Administrative Officer
Sales Representative
Technical Specialist
Professional Staff
Support Staff
Operations Manager
Project Manager
Regional Director
Account Manager
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