An Employment Memorandum of Understanding is commonly used in Hong Kong's business environment as a preliminary step before finalizing formal employment arrangements. This document is particularly useful when dealing with senior executives, specialized professionals, or complex employment arrangements where detailed terms need to be agreed upon in principle before proceeding with a formal contract. It typically includes proposed terms of employment, compensation structure, and key responsibilities while maintaining a generally non-binding nature. The document must align with Hong Kong employment laws, including the Employment Ordinance and related legislation, while providing a clear framework for the subsequent employment agreement. It's especially valuable in situations requiring multiple approval stages or when employment is subject to certain conditions being met.
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1. Parties: Identification of the potential employer and employee with full legal names and addresses
2. Background: Context of the potential employment relationship and purpose of the MOU
3. Definitions: Key terms used throughout the document
4. Non-Binding Nature: Clear statement that the MOU is generally non-binding except for specified clauses
5. Proposed Position and Duties: Overview of the intended role and key responsibilities
6. Proposed Compensation: Outline of the proposed salary, benefits, and other remuneration
7. Proposed Term: Expected employment start date and duration (if not permanent)
8. Key Employment Terms: Summary of essential terms including working hours, leave entitlements, and probation period
9. Confidentiality: Binding obligations regarding confidential information shared during discussions
10. Next Steps: Process and timeline for finalizing the formal employment agreement
11. Governing Law: Specification of Hong Kong law as governing law
12. Signatures: Execution block for both parties
1. Pre-Employment Conditions: Include when there are specific conditions to be met before employment can commence (e.g., background checks, medical examinations, or regulatory approvals)
2. Intellectual Property: Include when the role involves creation or handling of intellectual property
3. Non-Competition: Include for senior positions or roles with access to sensitive business information
4. Relocation: Include when the role involves employee relocation
5. Equity Participation: Include when share options or other equity arrangements are part of the compensation package
6. Performance Targets: Include when specific performance expectations need to be outlined
7. Good Faith Negotiation: Include when parties want to emphasize commitment to finalizing the employment agreement
1. Schedule 1 - Proposed Compensation Structure: Detailed breakdown of salary components, benefits, and allowances
2. Schedule 2 - Proposed Job Description: Detailed outline of roles, responsibilities, and reporting relationships
3. Schedule 3 - Required Documentation: List of documents needed for employment verification and onboarding
4. Appendix A - Company Policies Overview: Summary of key company policies that would apply to the employment
5. Appendix B - Benefits Summary: Overview of the complete benefits package including insurance, MPF, and other perks
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