A Redundancy Letter is a crucial document used when an organization needs to eliminate positions due to legitimate business reasons such as reorganization, automation, or economic circumstances. In the Philippines, this document must strictly comply with the Labor Code and Department of Labor and Employment (DOLE) regulations, which require proper notice periods and mandatory separation pay of at least one month's pay for every year of service. The letter should clearly communicate the business reasons for redundancy, confirm the notice period, detail the separation package, and outline any additional support provided. This document is particularly important as it serves both as official notification and as evidence that the redundancy process follows Philippine legal requirements, protecting both employer and employee interests.
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1. Letter Header: Company letterhead, date, and employee's contact details
2. Subject Line: Clear indication that this is a Notice of Redundancy
3. Opening Statement: Direct but sensitive statement announcing the redundancy decision
4. Business Rationale: Clear explanation of the business reasons leading to the redundancy decision
5. Notice Period: Specification of the notice period and the effective date of redundancy
6. Separation Package: Details of the separation pay and other benefits as per Philippine Labor Code
7. Return of Company Property: List of company properties to be returned and process for return
8. Final Pay Computation: Breakdown of final settlement including separation pay, pro-rated 13th month pay, unused leave credits
9. Acknowledgment Section: Space for employee signature acknowledging receipt of the notice
1. Outplacement Support: Details of any career transition services or job search assistance being offered
2. Reference Letter Offer: Offer to provide a reference letter for future employment
3. Non-Compete/Confidentiality Reminder: Reminder of any ongoing obligations regarding company confidentiality
4. Extension of Medical Benefits: Information about any extension of medical benefits post-termination
5. Rehiring Possibilities: Information about potential future opportunities with the company
1. Computation of Final Settlement: Detailed breakdown of all payments including separation pay, benefits, and deductions
2. Company Property Checklist: Itemized list of company properties to be returned
3. Employee Benefits Summary: Summary of benefits and their treatment post-termination
4. Contact Information Sheet: Important contact details for HR, benefits administration, and other relevant departments
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Retail
Healthcare
Education
Construction
Telecommunications
Business Process Outsourcing
Hospitality
Transportation
Energy
Mining
Agriculture
Professional Services
Relevant Teams
Human Resources
Legal
Compliance
Executive Leadership
Employee Relations
Corporate Communications
Administrative Services
Compensation and Benefits
Relevant Roles
HR Manager
HR Director
Legal Counsel
HR Business Partner
Employee Relations Manager
HR Operations Manager
Compliance Officer
Chief Human Resources Officer
HR Administrator
Legal Manager
Company Secretary
General Counsel
HR Specialist
Employment Law Specialist
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