Notice of Termination by Employer

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What is it?

A Notice of Termination by Employer is a formal declaration from you to your employee that you have decided to terminate his or her contract. The Notice of Termination by Employer contains the terms under which you are permitted to terminate the employee's contract and other details of the termination. A Notice of Termination by Employer creates a formal record that you have notified the employee of the termination.

Why do you need it?

A Notice of Termination by Employer is legally required when you decide to terminate the employment of an employee unless you have other forms of notice to serve the same purpose.

The Notice of Termination by Employer must be provided to the employee in line with the notice period required by law or the employment contract. If you intend to let your employee leave prior to serving out their notice period, you will have to pay your employee in lieu of notice.

A Notice of Termination by Employer will record the reasons for terminating the contract of your employee and will specify the last day that the employee will work at your company.

Key clauses to watch for:

When drafting a Notice of Termination by Employer, it is important to focus on a number of key clauses, in particular:

  • Details of your company;
  • Details of the employee;
  • Employee's last day;
  • Required notice for the employee's termination;
  • Circumstances of your termination of the employee's contract;
  • Post-termination restrictions previously agreed on in the employment contract (if any); and
  • Date of the notice of termination.

Notice of Termination by Employer Document

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