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A Friendly Termination Letter is used when both the employer and employee in Hong Kong have reached a mutual agreement to end their employment relationship amicably. This document serves as formal documentation of the termination terms, ensuring compliance with Hong Kong employment laws, particularly the Employment Ordinance (Cap. 57). It's typically used in scenarios where both parties wish to part ways professionally, such as when an employee is pursuing new opportunities or during organizational restructuring. The letter includes essential details such as the termination date, final payment calculations, benefit arrangements, and any post-employment obligations, while maintaining a positive tone that reflects the consensual nature of the separation.

1. Letter Header: Company letterhead, date, and addressee details

2. Opening Statement: Reference to previous discussions and confirmation of mutual agreement to terminate

3. Termination Date: Clear statement of the last day of employment

4. Final Payment Details: Breakdown of final salary, unused leave, and any other statutory payments

5. Company Property: List of items to be returned and process for return

6. Confidentiality Reminder: Reminder of ongoing confidentiality obligations

7. Reference Provision: Statement about providing employment references

8. Acknowledgment: Space for both parties to sign acknowledging the terms