The Permanent Layoff Letter is a crucial document used in Philippine business operations when implementing workforce reduction due to authorized causes under the Labor Code of the Philippines. This document is essential when companies need to terminate employment relationships due to business necessity, such as redundancy, retrenchment, or organizational restructuring. The letter must be issued in compliance with Philippine labor laws, which require a 30-day advance notice period and proper computation of separation benefits. A well-drafted Permanent Layoff Letter should include clear explanations of the termination reason, effective date, separation package details, final pay computation, and clearance procedures. It serves as both a legal requirement and a formal communication tool, protecting both employer and employee interests while ensuring compliance with statutory requirements.
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1. Letter Header: Company letterhead, date, and formal addressing of the employee including their full name, position, and department
2. Subject Line: Clear indication that this is a Notice of Permanent Layoff/Employment Termination
3. Opening Statement: Professional and respectful introduction stating the purpose of the letter
4. Legal Basis and Reason: Citation of relevant provisions of the Labor Code and specific business reasons for the layoff (e.g., redundancy, retrenchment, or business closure)
5. Effective Date: Clear statement of the last day of employment, ensuring compliance with the 30-day notice requirement
6. Separation Benefits: Detailed explanation of the separation package, including computation of separation pay and other statutory benefits
7. Final Pay Details: Information about final salary, unused leave credits, pro-rated 13th month pay, and other compensation
8. Company Property: Instructions regarding the return of company property and completion of clearance procedures
9. Closing Statement: Expression of gratitude for service and information about certificate of employment
10. Signature Block: Space for authorized signatory's name, position, and signature
1. Assistance Programs: Information about outplacement services or job search assistance if provided by the company
2. Healthcare Extension: Details about any extended health benefits or insurance coverage, if applicable
3. Reference Provision: Information about the company's policy on providing references for future employment
4. Non-Compete/Confidentiality Reminder: Reminder of any ongoing obligations regarding confidentiality or non-compete agreements
5. Appeal Process: Information about any internal appeal procedures, if available
6. Rehire Eligibility: Statement about future employment possibilities with the company, if applicable
1. Computation of Separation Benefits: Detailed breakdown of separation pay calculation and other benefits
2. Clearance Checklist: List of requirements and steps for completing the clearance process
3. Summary of Outstanding Company Property: Itemized list of company assets to be returned
4. Employee Acknowledgment Form: Form for the employee to sign acknowledging receipt of the layoff notice
5. DOLE Compliance Documents: Copies of required notifications to DOLE and other regulatory compliance documents
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Construction
Education
Business Process Outsourcing
Telecommunications
Transportation and Logistics
Mining and Natural Resources
Hospitality and Tourism
Agriculture
Real Estate
Energy
Relevant Teams
Human Resources
Legal
Compliance
Executive Leadership
Finance
Administrative Services
Employee Relations
Risk Management
Corporate Secretariat
Compensation and Benefits
Relevant Roles
Chief Executive Officer
Human Resources Director
Legal Counsel
HR Manager
Compliance Officer
Department Head
HR Business Partner
Legal Manager
Employee Relations Manager
Compensation and Benefits Manager
HR Operations Manager
Corporate Secretary
Risk Management Officer
Administrative Manager
Finance Director
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