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Contractual Appointment Letter Template for Hong Kong

A Hong Kong Contractual Appointment Letter is a formal employment document that establishes the legal relationship between an employer and employee under Hong Kong law. It outlines the fundamental terms and conditions of employment, including position, compensation, benefits, and other key terms in compliance with the Hong Kong Employment Ordinance and related legislation. This document serves as both a legal requirement and a practical tool for clearly communicating employment terms, while ensuring compliance with local employment regulations and protecting both parties' interests.

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What is a Contractual Appointment Letter?

The Contractual Appointment Letter is a crucial document in Hong Kong's employment landscape, used to formalize employment relationships across all industry sectors and job levels. It serves as the primary document establishing the employment relationship and must comply with the Hong Kong Employment Ordinance (Cap. 57) and other relevant employment legislation. The letter typically combines mandatory employment terms required by law with company-specific policies and benefits. It's essential for new hires, internal promotions, or role changes, providing clear documentation of employment terms while protecting both employer and employee interests. The document should be drafted with consideration of Hong Kong's unique legal requirements, including mandatory provident fund provisions, statutory leave entitlements, and local labor law compliance.

What sections should be included in a Contractual Appointment Letter?

1. Opening and Address Block: Formal letter header including date, addressee details, and salutation

2. Position and Reporting Line: Job title, department, and immediate supervisor details

3. Commencement Date: Start date of employment and any probationary period details

4. Duties and Responsibilities: Overview of main job duties and expectations

5. Compensation and Benefits: Base salary, payment schedule, and mandatory benefits including MPF

6. Working Hours and Location: Standard working hours, office location, and any flexibility arrangements

7. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

8. Termination Provisions: Notice period and termination conditions as per Employment Ordinance

9. Confidentiality: Basic confidentiality obligations during and after employment

10. Closing and Acceptance: Signature blocks and acceptance confirmation

What sections are optional to include in a Contractual Appointment Letter?

1. Bonus and Commission Structure: Include when role has variable compensation components

2. Mobility Clause: Include when role may require travel or relocation

3. Post-termination Restrictions: Include for senior roles or when handling sensitive information

4. Intellectual Property Rights: Include for creative, technical, or research-based roles

5. Remote Working Provisions: Include if role allows for remote work arrangements

6. Outside Business Activities: Include for senior roles or regulated industries

7. Share Options/Equity: Include if employee is eligible for company share schemes

8. Insurance Benefits: Include if company offers additional insurance coverage

What schedules should be included in a Contractual Appointment Letter?

1. Schedule 1 - Job Description: Detailed breakdown of responsibilities and performance expectations

2. Schedule 2 - Benefits Summary: Comprehensive list of all benefits and entitlements

3. Schedule 3 - Company Policies: Key company policies that form part of employment terms

4. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

5. Appendix B - IT Policy: Guidelines for use of company IT systems and data protection

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use

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