The Mutual Termination Of Employment Letter is a crucial document used when both employer and employee in the Philippines agree to end their employment relationship by mutual consent. It's particularly relevant when both parties wish to document an amicable separation that differs from standard resignation or termination procedures. The document must comply with Philippine labor laws, including the Labor Code and DOLE regulations, and typically includes essential details such as the agreed termination date, final settlement terms, benefit calculations, and mutual releases. This type of agreement is often used during company restructuring, when an employee seeks early release from their contract, or when both parties agree that continuing the employment relationship is no longer beneficial. The letter serves as official documentation of the separation terms and helps prevent future disputes by clearly outlining all agreed terms and conditions.
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1. Letter Header: Company letterhead, date, and formal addressing of the employee including their position and employee ID
2. Opening Statement: Reference to prior discussions and mutual agreement to terminate the employment relationship
3. Current Employment Details: Confirmation of current position, department, and length of service
4. Effective Date: Clear statement of the agreed termination date
5. Final Pay and Benefits: Overview of final salary, separation pay, and other statutory benefits
6. Company Property: Statement regarding return of company property and clearance procedures
7. Release and Quitclaim: Mutual release of claims and obligations
8. Confidentiality: Reminder of continuing confidentiality obligations
9. Acknowledgment: Space for signatures of both parties and date of signing
1. Outstanding Projects Handover: Include when employee needs to complete knowledge transfer or project handover
2. Non-Competition/Non-Solicitation: Include if there are post-employment restrictions to be maintained
3. Reference Agreement: Include if there's a specific agreement about future employment references
4. Healthcare Extension: Include if there are arrangements for extending health benefits
5. Stock Options/Benefits: Include if employee has company shares or stock options that need addressing
6. Training Cost Recovery Waiver: Include if waiving any training bond or cost recovery agreements
1. Final Settlement Computation: Detailed breakdown of final pay, benefits, and deductions
2. Company Property Checklist: List of company items to be returned with confirmation of return
3. Certificate of Clearance Template: Standard clearance form to be completed by relevant departments
4. Benefits Summary: Detailed list of benefits and their treatment post-termination
Relevant legal definitions
Clauses
Relevant Industries
Banking and Finance
Information Technology
Manufacturing
Retail
Healthcare
Education
Professional Services
Construction
Telecommunications
Business Process Outsourcing
Hospitality
Mining and Resources
Transportation and Logistics
Real Estate
Media and Entertainment
Relevant Teams
Human Resources
Legal
Compliance
Employee Relations
Personnel Administration
Corporate Secretariat
Executive Management
Operations Management
Finance
Compensation and Benefits
Relevant Roles
HR Manager
HR Director
Legal Counsel
HR Business Partner
Employee Relations Manager
Compliance Officer
Department Manager
Chief Human Resources Officer
HR Administrator
Compensation and Benefits Manager
HR Operations Manager
Chief Executive Officer
Chief Operating Officer
Managing Director
General Manager
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