The Layoff Letter Due To Lack Of Work is a crucial document used in the Philippine employment context when business conditions necessitate workforce reduction due to insufficient work volume. This document must strictly comply with the Philippine Labor Code, particularly Article 298 (formerly Article 283), which governs termination due to authorized causes. The letter serves as the formal notification required by law, initiating the mandatory 30-day notice period before termination. It outlines the business justification for the layoff, details the separation package including statutory separation pay, and provides information about final settlements and clearance procedures. This document is essential for employers to maintain legal compliance while ensuring clear communication with affected employees. It should be prepared in consultation with legal and HR departments to ensure all statutory requirements are met and the company's exposure to potential labor disputes is minimized.
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1. Letter Header: Company letterhead, date, and formal addressing to the employee including their full name, position, and department
2. Subject Line: Clear indication that this is a Notice of Employment Termination Due to Lack of Work
3. Opening Statement: Direct but sympathetic statement announcing the layoff decision and its primary cause (lack of work)
4. Business Justification: Clear explanation of the business circumstances leading to the lack of work, including relevant market conditions or business changes
5. Effective Date: Specification of the last day of employment (ensuring compliance with the 30-day notice requirement)
6. Separation Benefits: Detailed outline of separation pay and other benefits as required by Philippine Labor Code
7. Final Pay Details: Information about final salary, pro-rated 13th month pay, unused leave credits, and other compensations
8. Company Property: Instructions regarding the return of company property and handling of work responsibilities
9. Reference and Clearance: Information about the provision of employment certificates and clearance procedures
10. Closing Statement: Expression of gratitude for service and well-wishes for the future
1. Outplacement Support: Details of any career transition assistance or job search support being offered by the company
2. Healthcare Coverage Extension: Information about any extended health benefits, if applicable
3. Rehiring Possibility: Statement about potential future employment opportunities if business conditions improve
4. Non-Compete/Confidentiality Reminder: Reminder of any ongoing obligations regarding company confidentiality or existing non-compete agreements
5. Exit Interview: Information about exit interview arrangements, if company policy requires one
1. Separation Benefits Calculation: Detailed breakdown of separation pay calculation and other financial benefits
2. Employee Clearance Form: Checklist of items and procedures for proper employee clearance
3. Company Property Inventory: List of company assets to be returned before last day
4. Contact Information Sheet: Important contact details for HR, benefits administration, and other relevant departments
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Retail
Construction
Financial Services
Business Process Outsourcing
Hospitality
Agriculture
Mining
Transportation
Healthcare
Education
Media and Entertainment
Real Estate
Professional Services
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Labor Relations
Executive Management
Operations Management
Administrative Services
Corporate Communications
Industrial Relations
Relevant Roles
Human Resources Manager
Legal Counsel
HR Director
Compliance Officer
Employee Relations Manager
HR Business Partner
Labor Relations Specialist
HR Operations Manager
Chief Human Resources Officer
HR Administrator
Legal Manager
Department Manager
General Manager
Chief Executive Officer
Managing Director
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