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The Work Contract Cancellation Letter is a crucial document in Philippine employment law that formally terminates an employment relationship. It must be drafted in accordance with the Labor Code of the Philippines and related DOLE regulations, ensuring proper documentation of the termination process. This document is typically used when either party wishes to end the employment relationship, whether through mutual agreement, resignation, or termination for cause. It should include essential details such as the effective date of termination, reasons for cancellation, final settlement terms, and any continuing obligations. The letter serves as official documentation for both parties and may be required for future reference in legal or administrative proceedings. Under Philippine jurisdiction, proper execution of this document helps protect both employer and employee rights while ensuring compliance with local labor laws regarding notice periods and termination procedures.

1. Letter Header: Complete contact information of the sender and recipient, date, and subject line

2. Salutation: Formal greeting addressing the recipient

3. Contract Reference: Clear identification of the employment contract being cancelled, including original contract date and position

4. Cancellation Statement: Clear and unambiguous statement of contract cancellation or termination

5. Effective Date: Specific date when the contract cancellation takes effect

6. Reason for Cancellation: Brief explanation of the grounds for contract cancellation

7. Final Settlement Details: Information about final salary, benefits, and clearance procedures

8. Return of Company Property: List of company properties to be returned, if any

9. Closing: Professional closing statement, signature block, and contact information for further communication