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Notice Of Termination Of Employment Contract Template for Philippines

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Notice Of Termination Of Employment Contract

"I need a Notice of Termination of Employment Contract for our Manila office, effective March 15, 2025, due to company redundancy affecting our IT department of 10 employees, ensuring compliance with Philippine DOLE requirements for authorized cause termination."

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What is a Notice Of Termination Of Employment Contract?

The Notice Of Termination Of Employment Contract is a critical legal document used in the Philippine employment context when an employer needs to formally end an employment relationship. This document must be prepared in strict compliance with the Labor Code of the Philippines, particularly Articles 297-299, which govern employment termination. It is used in situations where termination is necessary due to just causes (such as serious misconduct or willful disobedience) or authorized causes (such as installation of labor-saving devices or redundancy). The notice must follow the mandatory "two-notice rule" under Philippine labor law, which requires a written notice informing the employee of the specific grounds for termination and an opportunity to explain their side, followed by a notice of termination if warranted. This document serves as crucial evidence in potential labor disputes and must include specific details about the termination grounds, effective date, final settlements, and employee rights.

What sections should be included in a Notice Of Termination Of Employment Contract?

1. Letter Header: Company letterhead, date, and formal addressing to the employee including their full name, position, and department

2. Subject Line: Clear indication that this is a Notice of Termination of Employment

3. Opening Statement: Reference to previous communications (if any) and clear statement of the purpose of the letter

4. Grounds for Termination: Specific detailed explanation of the cause(s) for termination, citing relevant provisions of the Labor Code or company policies

5. Facts and Evidence: Presentation of specific incidents, dates, and evidence supporting the grounds for termination

6. Legal Basis: Citation of relevant provisions from the Labor Code of the Philippines and company policies that support the termination

7. Effective Date: Clear statement of the effective date of termination and any notice period requirements

8. Final Settlement: Information about final pay, benefits, clearance procedures, and company property return requirements

What sections are optional to include in a Notice Of Termination Of Employment Contract?