A Friendly Termination Letter is utilized when both employer and employee in the Philippines have reached a mutual decision to end their employment relationship on amicable terms. This document is crucial in situations where the separation is consensual and both parties wish to maintain a positive professional relationship. It complies with Philippine Labor Code requirements and DOLE regulations, providing clear documentation of the termination terms, final pay arrangements, and mutual obligations. The letter serves multiple purposes: it confirms the agreement in writing, protects both parties' interests, facilitates smooth transition, and helps prevent future disputes. It's particularly valuable in situations where the separation is due to career advancement, personal circumstances, or organizational changes, rather than performance issues or misconduct.
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1. Letter Header and Date: Complete company letterhead, date, and reference number if applicable
2. Recipient Details: Employee's full name, position, and department
3. Subject Line: Clear indication that this is a mutual termination letter
4. Opening Statement: Reference to prior discussions and mutual agreement to terminate employment
5. Effective Date: Clear statement of the last day of employment
6. Final Pay Details: Overview of final salary, benefits, and other entitlements
7. Company Property: List of items to be returned and clearance procedures
8. Expression of Gratitude: Acknowledgment of employee's contributions and well wishes
9. Signature Blocks: Space for both employer and employee signatures to confirm mutual agreement
1. Transition Plan: Include when there's a need to outline handover of responsibilities or ongoing projects
2. Reference Provision: Include when agreeing to provide future employment references
3. Non-Disclosure Reminder: Include when employee had access to confidential information
4. Post-Employment Benefits: Include when discussing continuation of certain benefits like health insurance
5. Future Cooperation: Include when there might be need for future consultation or assistance
6. Release Clause: Include when both parties agree to release each other from future claims
1. Final Pay Computation: Detailed breakdown of final salary, pro-rated benefits, and other monetary entitlements
2. Company Property Checklist: Itemized list of company assets to be returned
3. Clearance Form: Standard company clearance form listing all departments that need to sign off
4. Certificate of Employment: Official document stating employment duration and position held
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Retail
Financial Services
Healthcare
Education
Professional Services
Construction
Hospitality
Telecommunications
Media and Entertainment
Real Estate
Non-Profit
Energy
Transportation and Logistics
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Management
Administration
Corporate Services
Operations
Relevant Roles
Human Resources Director
HR Manager
HR Business Partner
Legal Counsel
Department Manager
Line Manager
Supervisor
CEO
Managing Director
Department Head
Chief Operating Officer
HR Administrator
Compliance Officer
Employee Relations Manager
Personnel Manager
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