The Letter of Termination of Employment is a crucial document in Philippine employment law that formalizes the end of an employment relationship. It must be issued in compliance with the Labor Code of the Philippines and related DOLE regulations, which require specific procedures and documentation for both just cause (employee-attributed) and authorized cause (business-related) terminations. The letter should be used when an employer has determined to end employment after following due process, including any required administrative investigations or consultations. It must clearly state the grounds for termination, notice period, final pay computation, and separation benefits if applicable. This document serves as evidence of proper termination procedures and protects both employer and employee interests by clearly documenting the terms and conditions of the employment separation.
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1. Employee and Company Information: Complete details of the employee (name, position, employee ID) and company letterhead with full contact information
2. Date: Current date when the termination letter is issued
3. Subject Line: Clear indication that this is a termination notice
4. Termination Statement: Clear statement of employment termination decision
5. Legal Grounds: Specific legal basis for termination under Philippine Labor Code
6. Effective Date: Clear statement of when the termination takes effect, considering the required notice period
7. Final Pay Details: Information about final salary, benefits, and other monetary entitlements
8. Company Property: Instructions regarding return of company property
9. Closing Statement: Professional closing with acknowledgment section
10. Signatory Block: Space for authorized company representative's signature and employee acknowledgment
1. Separation Package: Details of any separation pay or additional benefits offered, used when termination is due to authorized causes
2. Certificate of Employment: Mention of availability of employment certificate, included when ending on good terms
3. Non-Compete Reminder: Reminder of existing non-compete agreements if applicable
4. Transition Arrangements: Details of handover requirements, included when position requires knowledge transfer
5. Appeal Process: Information about internal appeal procedures, included when company policy allows for appeals
6. Healthcare Continuation: Information about post-employment health benefits if applicable
7. Reference Arrangement: Company's policy on providing references, included when relevant
1. Final Pay Computation: Detailed breakdown of final pay including pro-rated 13th month pay, unused leave credits, and other benefits
2. Clearance Checklist: List of departments/units that need to clear the employee
3. Exit Interview Form: Standard form for exit interview process if required
4. Separation Pay Calculation: If applicable, detailed computation of separation pay based on years of service
5. Certificate of Employment Template: Standard format of employment certificate to be issued
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