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Early Termination Of Employment Contract

Early Termination Of Employment Contract Template for Philippines

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Key Requirements PROMPT example:

Early Termination Of Employment Contract

"I need an Early Termination of Employment Contract for a mutual separation agreement with our Senior Software Developer who has agreed to leave the company on March 15, 2025, including provisions for knowledge transfer and continued confidentiality of our proprietary software development processes."

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Document background
The Early Termination of Employment Contract is a crucial document used in the Philippines when either the employer or employee initiates the premature conclusion of an employment relationship. This document is essential when circumstances require ending employment before the contract's natural expiration or when terminating an indefinite-term employment contract. It must strictly comply with the Philippine Labor Code, DOLE regulations, and relevant jurisprudence regarding termination procedures, just or authorized causes, due process requirements, and computation of final benefits. The document serves to protect both parties' interests by clearly documenting the termination terms, final settlements, and ongoing obligations while ensuring all legal requirements are met to prevent future disputes.
Suggested Sections

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

2. Background: Brief overview of the employment relationship, including original employment date, position, and reference to the original employment contract

3. Definitions: Key terms used in the agreement, including 'Effective Date', 'Termination Date', 'Final Settlement', etc.

4. Termination Details: Specific details about the termination, including the effective date and grounds for termination in accordance with Philippine Labor Code

5. Final Settlement: Comprehensive breakdown of final payments, including salary, pro-rated 13th month pay, unused leave credits, and any separation pay

6. Company Property: List of company properties to be returned and process for their return

7. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets

8. Release and Waiver: Mutual release of claims and waiver of rights, subject to completion of final settlement

9. Governing Law: Confirmation that the agreement is governed by Philippine law and relevant labor regulations

10. Execution: Signature blocks and execution details

Optional Sections

1. Non-Competition: Include when the original employment contract contained non-compete provisions that will survive termination

2. Transition Arrangements: Include when the employee needs to complete knowledge transfer or handover of duties

3. Reference and Future Employment: Include when parties agree on terms regarding employment references and future employment opportunities

4. Post-Employment Benefits: Include when discussing continuation or termination of benefits like health insurance or stock options

5. Dispute Resolution: Include when parties wish to specify particular dispute resolution mechanisms beyond standard legal channels

6. Non-Disparagement: Include when parties agree to mutual non-disparagement provisions

Suggested Schedules

1. Schedule A - Final Settlement Calculation: Detailed breakdown of all financial settlements, including basic salary, benefits, deductions, and statutory payments

2. Schedule B - Company Property Checklist: Itemized list of company properties to be returned

3. Schedule C - Outstanding Projects/Tasks: List of projects or tasks requiring handover or completion before termination

4. Appendix 1 - Original Employment Contract: Copy of the original employment contract for reference

5. Appendix 2 - Clearance Form: Standard company clearance form to be completed before final settlement

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

alex.den.21@genieai.co
Relevant legal definitions



































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Relevant Industries

Manufacturing

Information Technology

Financial Services

Retail

Healthcare

Education

Business Process Outsourcing

Construction

Hospitality

Telecommunications

Professional Services

Mining

Agriculture

Transportation

Real Estate

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Labor Relations

Executive Leadership

Operations

Administration

Finance

Payroll

Relevant Roles

Human Resources Manager

HR Director

Legal Counsel

HR Business Partner

Employee Relations Manager

Compliance Officer

HR Operations Manager

Chief Human Resources Officer

Labor Relations Specialist

HR Administrator

Recruitment Manager

Department Manager

Line Manager

Supervisor

Chief Executive Officer

Chief Operating Officer

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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