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The Termination Of Subcontractor Agreement Letter is a crucial business document used when a company needs to formally end a subcontracting relationship in the Philippines. This document is essential for companies operating under Philippine jurisdiction who need to ensure compliance with local laws including the Civil Code of the Philippines and DOLE Department Order No. 174. It serves as official documentation of the termination decision, protecting both parties' interests by clearly stating the termination date, reasons, remaining obligations, and transition requirements. The letter becomes particularly important in industries with complex subcontracting arrangements, where clear documentation of relationship termination is necessary for legal protection and business continuity. Proper execution of this document helps prevent potential disputes and ensures smooth transition of works or services.

1. Letter Header: Company letterhead, date, and proper addressing to the subcontractor including their complete business name and address

2. Reference Line: Clear reference to the original subcontractor agreement including its date and contract number

3. Opening Statement: Direct statement indicating the purpose of the letter - to terminate the subcontractor agreement

4. Termination Details: Specific information about the termination including effective date and reference to the termination clause in the original agreement

5. Reason for Termination: Clear and professional explanation of the grounds for termination

6. Outstanding Obligations: Statement regarding any remaining work, payments, or obligations that need to be addressed

7. Return of Property: Instructions regarding the return of any company property, documents, or materials

8. Closing Statement: Professional closing including any required next steps and contact information for further communication

9. Signature Block: Formal signature section including name, title, and company details of the authorized signatory