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Work Contract Cancellation Letter for Philippines

Work Contract Cancellation Letter Template for Philippines

A formal document used in the Philippines to officially terminate an employment contract, governed by Philippine Labor Code and related employment regulations. This document outlines the terms and conditions of the employment contract termination, including the effective date, reasons for cancellation, final settlement details, and any post-employment obligations. It must comply with Philippine labor laws regarding notice periods, just causes for termination, and proper documentation requirements, while ensuring protection of both employer and employee rights under local jurisdiction.

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Work Contract Cancellation Letter

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What is a Work Contract Cancellation Letter?

The Work Contract Cancellation Letter is a crucial document in Philippine employment law that formally terminates an employment relationship. It must be drafted in accordance with the Labor Code of the Philippines and related DOLE regulations, ensuring proper documentation of the termination process. This document is typically used when either party wishes to end the employment relationship, whether through mutual agreement, resignation, or termination for cause. It should include essential details such as the effective date of termination, reasons for cancellation, final settlement terms, and any continuing obligations. The letter serves as official documentation for both parties and may be required for future reference in legal or administrative proceedings. Under Philippine jurisdiction, proper execution of this document helps protect both employer and employee rights while ensuring compliance with local labor laws regarding notice periods and termination procedures.

What sections should be included in a Work Contract Cancellation Letter?

1. Letter Header: Complete contact information of the sender and recipient, date, and subject line

2. Salutation: Formal greeting addressing the recipient

3. Contract Reference: Clear identification of the employment contract being cancelled, including original contract date and position

4. Cancellation Statement: Clear and unambiguous statement of contract cancellation or termination

5. Effective Date: Specific date when the contract cancellation takes effect

6. Reason for Cancellation: Brief explanation of the grounds for contract cancellation

7. Final Settlement Details: Information about final salary, benefits, and clearance procedures

8. Return of Company Property: List of company properties to be returned, if any

9. Closing: Professional closing statement, signature block, and contact information for further communication

What sections are optional to include in a Work Contract Cancellation Letter?

1. Mutual Agreement Statement: Include when the cancellation is by mutual consent of both parties

2. Severance Package Details: Include when additional compensation or benefits are being offered

3. Non-Compete Reminder: Include when the original contract contained non-compete clauses that remain in effect

4. Certificate of Employment Offer: Include when the employer is willing to provide a certificate of employment

5. Confidentiality Reminder: Include when there are ongoing confidentiality obligations

What schedules should be included in a Work Contract Cancellation Letter?

1. Clearance Checklist: List of items and procedures for employment clearance

2. Final Settlement Computation: Detailed breakdown of final pay, benefits, and deductions

3. Company Property Inventory: Detailed list of company properties to be returned

4. Certificate of Employment: Standard format certificate confirming employment period and position

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

Cancellation Letter

Sector

Sales

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Information Technology

Business Process Outsourcing

Financial Services

Retail

Healthcare

Education

Construction

Hospitality

Professional Services

Telecommunications

Agriculture

Mining

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Administration

Compliance

Operations

Management

Personnel

Corporate Secretariat

Relevant Roles

Human Resources Manager

HR Director

Legal Counsel

HR Business Partner

HR Administrator

Compliance Officer

Department Manager

Operations Manager

General Manager

Executive Director

Administrative Officer

Personnel Manager

Legal Manager

HR Specialist

Company 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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