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Letter Of Termination Of Service for Philippines

Letter Of Termination Of Service Template for Philippines

A Letter of Termination of Service is a formal document used in the Philippines to officially end an employment relationship, governed by the Philippine Labor Code and related employment regulations. This document must comply with strict legal requirements including proper notice periods, just or authorized causes for termination, and detailed information about final settlements. It serves as a legal record of employment termination and must include specific elements such as the effective date, grounds for termination, final pay computation, and clearance requirements. The letter must adhere to due process requirements under Philippine labor laws and should be drafted carefully to avoid potential legal challenges.

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What is a Letter Of Termination Of Service?

The Letter of Termination of Service is a crucial document in Philippine employment law that formally communicates the end of an employment relationship. It must be drafted in strict compliance with the Labor Code of the Philippines and related DOLE (Department of Labor and Employment) regulations. This document is used when an employer needs to terminate an employee's service either for just cause (such as misconduct or negligence) or authorized causes (such as redundancy or business closure). The letter must include specific legally-required elements including the grounds for termination, effective date, final pay details, and clearance procedures. Given the strong employee protection laws in the Philippines, proper documentation and procedure through this letter is essential to avoid potential legal disputes or claims of illegal termination.

What sections should be included in a Letter Of Termination Of Service?

1. Letter Header: Company letterhead, date, and recipient's complete details including name, position, and address

2. Subject Line: Clear indication that this is a termination notice

3. Opening Statement: Direct statement of termination decision with reference to any prior discussions or warnings

4. Reason for Termination: Clear explanation of the grounds for termination, citing specific incidents or causes in accordance with Philippine Labor Code

5. Effective Date: Specific date when employment will end, including notice period if applicable

6. Final Pay Information: Details of final salary, benefits, and other entitlements

7. Company Property: List of company properties to be returned and deadline for return

8. Closing Statement: Professional closing with information about next steps

9. Signature Block: Authorized signatory's name, position, and signature

What sections are optional to include in a Letter Of Termination Of Service?

1. Notice Period Details: Include when there is a notice period to be served or if it's being waived

2. Severance Package: Include when offering separation pay or additional benefits beyond statutory requirements

3. Non-Compete/Confidentiality Reminder: Include when employee is bound by existing confidentiality or non-compete agreements

4. Appeal Process: Include when company policy allows for appeals of termination decision

5. Certificate of Employment: Include when offering immediate issuance of employment certificate

6. Clearance Process: Include when there's a specific clearance procedure to be followed

7. Reference Provision: Include when specifying company's policy on providing references

What schedules should be included in a Letter Of Termination Of Service?

1. Final Pay Computation: Detailed breakdown of final pay including pro-rated 13th month pay, unused leave credits, and other monetary benefits

2. Company Property Checklist: Itemized list of company properties to be returned

3. Exit Interview Form: Standard form for exit interview process if required

4. Clearance Form: Standard company clearance form listing all departments that need to sign off

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions




















Clauses















Relevant Industries

Banking and Finance

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Manufacturing

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Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Employee Relations

Operations

Senior Management

Administration

Corporate Services

Relevant Roles

HR Manager

HR Director

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Employment Lawyer

HR Business Partner

HR Officer

Compliance Officer

Department Head

Line Manager

Operations Manager

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Managing Director

Chief Human Resources Officer

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Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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