Termination Agreement Template Hong Kong

Termination Agreement Template Hong Kong: What You Need to Know

A termination agreement is a legal document that outlines the terms and conditions of terminating an agreement between two parties. If you are in Hong Kong and looking to terminate a business relationship, employment contract, or any other agreement, it’s essential to have a termination agreement template that suits your needs.

When drafting a termination agreement template, it’s essential to ensure that it covers all the necessary components that protect both parties’ interests. The template should include details such as the effective date of termination, reasons for termination, and any agreed-upon compensation or severance packages.

In Hong Kong, the Employment Ordinance governs most employer-employee relationships, and having a well-drafted termination agreement template can protect both parties from legal disputes that may arise in the future.

Things to Consider When Drafting a Termination Agreement Template

1. The Effective Date of Termination

The effective date of termination is the date when the relationship officially ends. It’s important to ensure that you include the exact date in the termination agreement template to avoid any misunderstandings or disagreements that may arise.

2. Reasons for Termination

In most cases, the reasons for termination are either due to the expiration of a contract or the termination of an employee’s contract. If it’s due to employee termination, the reasons for termination should be clearly stated in the agreement.

3. Obligations of Both Parties

The termination agreement should clearly outline the obligations of both parties. For instance, if it is an employment relationship, the employee must return any company property, such as laptops, phones, or any other equipment.

4. Compensation and Severance Packages

The amount of compensation or severance package should be clearly stated in the termination agreement template. This ensures that both parties are aware of what they will receive after the termination of the agreement.

5. Non-Compete and Non-Disclosure clauses

In some cases, a non-compete or non-disclosure clause may be included in the termination agreement template. This clause prohibits the employee from disclosing any confidential information or working for a competitor in the same industry for a specified period.


In conclusion, having a well-crafted termination agreement template in Hong Kong is essential to protect both parties’ interests. The template should include essential details such as the effective date of termination, reasons for termination, compensation or severance packages, and any other obligations of both parties.

If you need assistance in drafting a termination agreement, it’s advisable to seek legal advice from a qualified lawyer with experience in Hong Kong laws. With the right termination agreement in place, you can prevent disputes and ensure a smooth termination process.

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