The Severance Notice is a crucial document in Philippine employment law, used when an employer needs to formally terminate an employment relationship while ensuring compliance with local labor regulations. It serves as both a legal requirement and a formal communication tool, typically issued after any required preliminary notices or discussions. The document must adhere to the Philippine Labor Code's requirements, including proper citation of termination grounds (whether for just cause, authorized cause, or redundancy), computation of separation benefits according to law, and observance of due process. The notice should be drafted with careful attention to detail, as it may be scrutinized in potential labor disputes and must demonstrate compliance with both substantive and procedural due process requirements under Philippine law.
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1. Letter Header: Company letterhead, date, and formal addressing to the employee including their name, position, and department
2. Subject Line: Clear indication that this is a Notice of Termination/Severance
3. Opening Statement: Reference to any prior discussions or warning notices, and clear statement of the purpose of the letter
4. Grounds for Termination: Detailed explanation of the reason(s) for termination, citing specific incidents or circumstances and relevant legal bases under Philippine law
5. Effective Date: Clear statement of the last working day and when the termination takes effect
6. Severance Package Details: Comprehensive breakdown of the separation pay and other benefits, including calculation method and total amount
7. Company Property: List of company properties to be returned and process for handover
8. Final Clearance Process: Steps the employee needs to take for final clearance and receiving their severance package
9. Closing Statement: Professional closing including contact information for questions and next steps
10. Signature Block: Space for authorized signatory from the company and acknowledgment receipt by the employee
1. Non-Compete/Confidentiality Reminder: Include when the employee has existing confidentiality or non-compete agreements that survive termination
2. Continuation of Benefits: Include when there are specific benefits that continue post-employment (e.g., health insurance extension)
3. Release and Quitclaim: Include when the company requires the employee to sign a separate quitclaim as part of the severance agreement
4. Appeal Process: Include when company policy or circumstances require providing information about appeal procedures
5. Reference Provision: Include when addressing how future employment references will be handled
1. Computation of Severance Pay: Detailed breakdown of severance pay calculation including basic pay, prorated 13th month pay, unused leave credits, and other applicable benefits
2. Company Property Checklist: Itemized list of company assets to be returned including IT equipment, access cards, documents, etc.
3. Final Clearance Checklist: List of departments/units that need to clear the employee before final release of severance pay
4. Benefits Summary: Detailed summary of any continuing benefits and their duration post-employment
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