Document background
A Severance Agreement Letter is a crucial document used when terminating an employment relationship in Hong Kong. It is typically employed in situations of mutual separation, redundancy, or negotiated exits, providing a comprehensive framework for the termination arrangement. The document must align with Hong Kong's employment laws, particularly the Employment Ordinance (Cap. 57), and should include essential elements such as termination date, severance payment calculations, treatment of benefits, and any post-employment obligations. The Severance Agreement Letter serves multiple purposes: it provides legal protection for both parties, ensures compliance with statutory requirements, documents the agreed-upon terms of separation, and helps prevent future disputes. It's particularly important in Hong Kong's business environment where employment relationships are heavily regulated and statutory entitlements must be carefully addressed.
