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Separation And Release Agreement for Philippines

Separation And Release Agreement Template for Philippines

A comprehensive legal document governed by Philippine labor law that formalizes the termination of employment between an employer and employee. This agreement outlines the terms and conditions of the separation, including financial compensation, benefits, and mutual release of claims. It ensures compliance with Philippine statutory requirements while providing legal protection for both parties. The document addresses mandatory separation benefits, confidentiality obligations, and other relevant terms specific to Philippine employment regulations, including requirements under the Labor Code of the Philippines and related DOLE guidelines.

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What is a Separation And Release Agreement?

The Separation and Release Agreement is a crucial document used in the Philippines when formally ending an employment relationship. It serves as a legally binding contract that protects both employer and employee interests by clearly documenting the terms of separation, including all financial settlements, benefits, and mutual releases. This document must comply with Philippine labor laws, particularly the Labor Code of the Philippines and Department of Labor and Employment (DOLE) regulations. It's typically used in scenarios of mutual separation, redundancy, or other forms of employment termination where both parties agree to specific terms. The agreement includes provisions for statutory separation pay, additional benefits, confidentiality clauses, and release of claims, while ensuring all mandatory requirements under Philippine law are met. It's essential for risk management and providing clear documentation of the separation terms agreed upon by both parties.

What sections should be included in a Separation And Release Agreement?

1. Parties: Identification of the employer and employee, including their complete legal names and addresses

2. Background: Brief history of employment relationship, including start date, position, and basis for separation

3. Definitions: Key terms used throughout the agreement including 'Separation Date', 'Separation Pay', 'Claims', etc.

4. Effective Date of Separation: Clear statement of when employment relationship ends

5. Separation Benefits: Details of all financial compensation and benefits to be provided, including statutory and additional payments

6. Payment Terms: Timing and method of payment for all separation benefits

7. Release of Claims: Mutual release of all claims, demands, and causes of action

8. Return of Company Property: Requirements and timeline for returning company assets, documents, and information

9. Confidentiality: Ongoing obligations regarding confidential information

10. Tax Provisions: Treatment of tax obligations for separation payments

11. General Provisions: Standard clauses including entire agreement, governing law, and severability

12. Execution: Signature blocks and attestation requirements

What sections are optional to include in a Separation And Release Agreement?

1. Non-Compete and Non-Solicitation: Post-employment restrictions, if applicable and enforceable under Philippine law

2. Ongoing Cooperation: Terms for employee assistance in transition or future matters

3. Reference and Communication: Agreement on how employment will be characterized to third parties

4. Reaffirmation of Prior Agreements: Continuation of specific obligations from employment agreement

5. Medical Benefits Extension: Terms for continued medical coverage if offered

6. Stock Options/Equity: Treatment of any outstanding equity compensation

7. Outplacement Services: Details of any career transition assistance provided

8. Dispute Resolution: Specific procedures for resolving disputes about the agreement

What schedules should be included in a Separation And Release Agreement?

1. Schedule A - Calculation of Separation Benefits: Detailed breakdown of all payments including statutory requirements and additional benefits

2. Schedule B - Company Property Checklist: List of all company items to be returned

3. Schedule C - Continuing Obligations: List of surviving provisions from employment agreement

4. Schedule D - Benefits Summary: Details of insurance, healthcare, and other benefits treatment

5. Appendix 1 - Release Form: Standard DOLE-compliant release and quitclaim form

6. Appendix 2 - Statutory Benefits Calculation: Computation of mandatory separation benefits under Philippine law

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

Release Agreement

Cost

Free to use
Relevant legal definitions








































Clauses




































Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Telecommunications

Construction

Hospitality

Mining

Agriculture

Business Process Outsourcing

Transportation

Energy

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Executive Leadership

Compensation and Benefits

Corporate Governance

Risk Management

Labor Relations

Administration

Relevant Roles

Human Resources Director

HR Manager

Legal Counsel

Employment Lawyer

HR Business Partner

Compliance Officer

Chief Human Resources Officer

HR Operations Manager

Employee Relations Manager

Compensation and Benefits Manager

Chief Legal Officer

General Counsel

HR Administrator

Talent Management Director

Corporate Secretary

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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