The Termination Of Contract Of Employment is a crucial document used when formally ending an employment relationship in the Philippines. It must strictly comply with the Philippine Labor Code, related DOLE regulations, and jurisprudence regarding employment termination. This document is essential when implementing either employer-initiated termination (for just or authorized causes) or employee resignation. It includes vital information such as termination grounds, effective date, final pay computation, benefits, clearance requirements, and post-employment obligations. The document helps protect both employer and employee interests by ensuring legal compliance, proper documentation, and clear agreement on termination terms. It's particularly important given the Philippines' strong employee protection laws and the need to prevent potential labor disputes.
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1. Parties: Identification of the employer and employee, including their complete details and addresses
2. Background: Brief history of employment relationship, including original employment date, position, and reference to original employment contract
3. Definitions: Key terms used in the termination agreement
4. Effective Date of Termination: Clear statement of when the employment relationship will end
5. Reason for Termination: Statement of the legal grounds for termination in accordance with Philippine Labor Code
6. Final Pay and Benefits: Detailed breakdown of final salary, pro-rated 13th month pay, unused leave credits, and other statutory benefits
7. Release of Claims: Mutual release of claims between employer and employee
8. Return of Company Property: List of company properties to be returned and deadline for return
9. Confidentiality Obligations: Ongoing obligations regarding confidential information
10. Execution: Signature blocks and witnessing requirements
1. Separation Pay: Required when termination is due to authorized causes or when separation pay is offered as part of a package
2. Non-Competition Clause: Optional restriction on future employment, if applicable and reasonable
3. Reference Provision: Terms regarding future employment references
4. Transition Arrangements: Details of handover process and transition period, if applicable
5. Post-Employment Medical Benefits: Any continued medical coverage if offered
6. Re-employment Rights: Any provisions for potential future re-employment
7. Tax Implications: Statement on tax treatment of termination payments
8. Dispute Resolution: Specific procedures for resolving any disputes arising from the termination
1. Schedule A - Computation of Final Pay: Detailed calculation of all final payments including basic salary, benefits, and deductions
2. Schedule B - Company Property Checklist: Itemized list of company properties to be returned
3. Schedule C - Certificate of Employment: Draft of the certificate of employment to be issued
4. Appendix 1 - Clearance Form: Departmental clearance requirements and sign-offs
5. Appendix 2 - Benefits Summary: Summary of all benefits and entitlements upon termination
6. Appendix 3 - Quitclaim: Standard quitclaim form if being used as part of the termination
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Information Technology
Banking and Finance
Retail
Healthcare
Education
Construction
Business Process Outsourcing
Telecommunications
Hospitality
Mining
Agriculture
Transportation and Logistics
Real Estate
Professional Services
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Labor Relations
Corporate Secretariat
Finance
Operations
Administration
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Compliance Officer
HR Business Partner
Employee Relations Manager
Personnel Manager
Labor Relations Specialist
HR Operations Manager
Compensation and Benefits Manager
HR Administrator
Chief Human Resources Officer
Employment Law Attorney
HR Coordinator
Recruitment Manager
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