The Job Contract Termination Letter is a crucial legal document used in the Philippines when formally ending an employment relationship. It must be prepared in strict compliance with the Labor Code of the Philippines and related DOLE regulations, particularly adhering to the two-notice rule for termination. This document is utilized in various situations including just cause termination, authorized cause termination, or resignation acceptance. The letter serves multiple purposes: it officially documents the termination decision, outlines the legal basis and effective date, details final pay computation, and provides instructions for clearance procedures. Proper execution of this document is essential for legal compliance and risk management, as improper termination procedures can lead to claims of illegal dismissal under Philippine labor laws.
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1. Letterhead and Date: Company letterhead with complete contact information and the current date
2. Employee Information: Complete name and address of the employee, position, and employee ID number
3. Subject Line: Clear indication that this is a notice of employment termination
4. Opening Statement: Reference to previous communications (if any) and clear statement of termination decision
5. Grounds for Termination: Specific legal basis for termination under Philippine Labor Code with supporting facts
6. Effective Date: Clear statement of the last day of employment
7. Final Pay Details: Breakdown of final pay including salary, benefits, and other entitlements
8. Company Property Return: List of company properties to be returned and deadline
9. Closing Statement: Information about exit procedures and certificate of employment
10. Signature Block: Authorized signatory details with space for acknowledgment
1. Non-Compete Reminder: Include when employee is bound by non-compete agreements
2. Continuation of Benefits: Include when there are post-employment benefits or insurance coverage details
3. Severance Package: Include when offering additional separation benefits beyond statutory requirements
4. Release and Quitclaim: Include when a separate quitclaim will be executed
5. Transition Plan: Include when employee needs to handle knowledge transfer or pending projects
6. Appeal Process: Include when company policy allows for appeals of termination decision
1. Final Pay Computation: Detailed breakdown of all monetary benefits, deductions, and net amount
2. Company Property Checklist: Itemized list of company assets to be returned
3. Certificate of Employment: Standard format of employment certificate to be issued
4. Clearance Form: Department clearance requirements and signatory form
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