The Labour Cancellation Letter is a crucial document in Philippine employment law that formally communicates the termination of an employment relationship. It is used when an employer needs to end an employment contract, whether due to authorized causes under Article 298 of the Labor Code (economic, technological, structural, or similar reasons) or just causes under Article 297. The document must strictly comply with Philippine labor regulations, including proper notice requirements and due process. It should detail the grounds for termination, effective date, final pay computation, and post-employment obligations. This letter serves as official documentation for both parties and may be required in subsequent administrative or legal proceedings. The format and content must align with Department of Labor and Employment (DOLE) guidelines and jurisprudential requirements to ensure the termination's validity.
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1. Header Information: Company letterhead, date, reference number, and formal addressing to the employee including their full name and position
2. Subject Line: Clear indication that this is a Notice of Employment Contract Termination/Cancellation
3. Opening Statement: Reference to previous communications (if any) and immediate statement of the letter's purpose
4. Legal Basis: Citation of relevant provisions from the Labor Code or employment contract that authorize the termination
5. Effective Date: Clear statement of when the employment relationship will end
6. Final Pay Details: Information about the computation and release of final pay, including all statutory benefits
7. Return of Company Property: List of company properties to be returned and deadline for return
8. Closing Statement: Expression of appreciation for service and formal closing
9. Signature Block: Space for authorized signatory's name, position, and signature
1. Separation Benefits: Include when additional separation benefits beyond statutory requirements are being offered
2. Non-Compete/Confidentiality Reminder: Include when employee is bound by post-employment restrictions
3. Transition Arrangements: Include when employee needs to handle knowledge transfer or complete specific tasks before departure
4. Clearance Procedures: Include when specific departmental clearances are required
5. Certificate of Employment: Include when offering to provide a certificate of employment
6. Release and Quitclaim: Include when a separate quitclaim will be executed
7. Appeal Process: Include when termination is for cause and employee has right to appeal
1. Computation of Final Pay: Detailed breakdown of final salary, pro-rated benefits, and other payments
2. Company Property Checklist: Itemized list of company properties to be returned
3. Certificate of Employment: Draft of certificate of employment to be issued
4. Clearance Form: Standard clearance form to be completed by relevant departments
5. Quitclaim Template: If applicable, the form of quitclaim to be executed upon receipt of final benefits
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Services
Technology
Retail
Banking and Finance
Construction
Healthcare
Education
Hospitality
Telecommunications
Business Process Outsourcing
Mining
Agriculture
Transportation
Real Estate
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Labor Relations
Corporate Secretariat
Administration
Finance
Internal Audit
Risk Management
Relevant Roles
Human Resources Director
HR Manager
Legal Counsel
Compliance Officer
HR Business Partner
Employee Relations Manager
Personnel Manager
Corporate Secretary
Labor Relations Officer
HR Operations Manager
Chief Human Resources Officer
HR Administrator
Legal Manager
HR Specialist
Compensation and Benefits Manager
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