Creating Confirmation Documents with Employees Leaving Due to Agreed Resignation!

Law firm Veat’s client, a blockchain domestic subsidiary A (hereinafter referred to as “the client”) had to retire a specific employee through a recommendation for dismissal. Law firm Veat drafted a confirmation document between the client and the employee being retired through a recommendation for dismissal (hereinafter “the relevant employee”) and provided legal advice regarding the matter, minimizing the possibility of future legal disputes for the client.

Elements to Consider When Drafting a Confirmation Document with an Employee Being Retired Through a Recommendation for Dismissal

◾ Consent regarding the change of rights and obligations during retirement

It is very important to review the existing contract and clearly reflect any changes. The relevant employee had entered into a virtual asset sales contract (hereinafter “the relevant contract”) with the client’s overseas subsidiary. The relevant contract stipulated that the content of the contract would be changed upon retirement before the vesting period. Law firm Veat meticulously analyzed each clause of the relevant contract, considered the client’s current situation, changed the content of the contract, and drafted a confirmation document (hereinafter “the relevant confirmation document”) stating that the relevant employee agrees with the changed contract content.

In this way, Law firm Veat accurately judged the client’s current situation and, based on that, provided legal advice to minimize the possibility of future legal disputes between the client and the relevant employee. This is a result of Law firm Veat’s numerous contract reviews and legal advice experience.

◾ Prohibition of leakage and outflow of company’s trade secrets

Trade secrets mean things that are not publicly known and have independent economic value (Law for Prevention of Unfair Competition and Protection of Business Secrets, Article 2, Paragraph 2). If such trade secrets leak or are disclosed externally, it could cause significant disruption to the company’s business, so attention should be paid to protecting trade secrets.

In this context, Law firm Veat stipulated in the relevant confirmation document that the employee being retired through a recommendation for dismissal must not leak or disclose the company’s trade secrets even after retirement. This provision is an important preventive measure to protect the company's core assets, trade secrets, and to preemptively block potential risks that may arise after the relevant employee's retirement.

◾ Prohibition of defamation and business interference regarding the company

An employee being retired through a recommendation for dismissal may have negative feelings towards the company. Therefore, when an employee is retired through a recommendation for dismissal, the retiree may disseminate false or fabricated information, defame the company, or even directly interfere with the company’s operations.

It is necessary to prevent a retiree from acting against the company’s interests due to resentment. Therefore, Law firm Veat explicitly stated in the relevant confirmation document a provision prohibiting defamation and business interference regarding the company.

Legal advice from Law firm Veat based on expertise and experience

As stated above, through the relevant confirmation document, Law firm Veat clarified the rights and obligations between the client and the relevant employee and provided thorough legal advice to prevent potential legal disputes. Through Law firm Veat’s legal advice, the client was able to minimize legal risks and continue stable operations.

In this way, Law firm Veat is also providing customized solutions to the client’s current situation regarding employee recommendation for dismissal and other personnel and labor issues, supporting the client to be free from legal disputes. If you need legal advice regarding personnel and labor issues, please contact Law firm Veat.

Thank you.

Law firm Veat