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Severance Letter

Severance Letter Template for Philippines

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Severance Letter

"I need a Severance Letter for a manufacturing company in the Philippines, addressing a company-wide redundancy affecting 50 employees due to automation, with the termination effective March 15, 2025, including enhanced severance packages and outplacement support."

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Document background
A Severance Letter is a crucial document used when terminating employment relationships in the Philippines, whether due to authorized causes such as redundancy, retrenchment, or closure of operations. This document must strictly comply with Philippine labor laws, particularly the Labor Code and Department of Labor and Employment (DOLE) regulations. The Severance Letter serves multiple purposes: it formally communicates the termination decision, documents the legal basis for separation, details the severance package computation, outlines final pay components, and specifies any continuing obligations or benefits. It's essential for protecting both employer and employee interests and ensuring compliance with local employment regulations. The document typically includes information about statutory benefits, separation pay calculations, final pay components, and other relevant terms of the employment termination.
Suggested Sections

1. Letter Header: Company letterhead, date, and employee's complete contact information

2. Subject Line: Clear indication that this is a severance letter

3. Opening Statement: Formal confirmation of employment termination and its effective date

4. Reason for Termination: Clear statement of the authorized cause for termination as per Philippine Labor Code

5. Severance Payment Details: Detailed breakdown of the severance package calculation and payment method

6. Final Pay Components: List of all final payments including pro-rated 13th month pay, unused leave credits, and other statutory benefits

7. Return of Company Property: List of company properties to be returned and the process for doing so

8. Continuing Obligations: Reference to any ongoing obligations such as confidentiality or non-compete agreements

9. Certificate of Employment: Confirmation that a certificate of employment will be provided

10. Acknowledgment: Space for both employer and employee signatures with date

11. Contact Information: Details of who to contact for questions or clarifications

Optional Sections

1. Outplacement Support: Details of any career transition assistance offered, if applicable

2. Medical Benefits Extension: Information about continuation of medical benefits, if offered

3. Release and Quitclaim: Terms of separation agreement and waiver of claims, if being offered as part of the package

4. Stock Options/Equity: Treatment of any outstanding stock options or equity compensation

5. Retirement Benefits: Additional information if the severance is related to retirement

6. Training Certificate: Reference to certificates for completed training programs, if relevant to future employment

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed computation of severance pay including years of service, base salary, and multipliers

2. Schedule B - Final Pay Computation: Breakdown of all final pay components including pro-rated benefits, tax computations, and deductions

3. Schedule C - Benefits Summary: Comprehensive list of all benefits and their status post-termination

4. Schedule D - Company Property Checklist: Itemized list of company properties to be returned with their condition status

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 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

























Clauses

























Relevant Industries

Manufacturing

Information Technology

Financial Services

Retail

Healthcare

Education

Construction

Business Process Outsourcing

Telecommunications

Mining

Agriculture

Professional Services

Transportation

Hospitality

Energy

Relevant Teams

Human Resources

Legal

Compliance

Finance

Payroll

Employee Relations

Corporate Secretariat

Labor Relations

Executive Leadership

Administrative Services

Relevant Roles

HR Director

HR Manager

Legal Counsel

Compliance Officer

HR Business Partner

Employment Law Specialist

Benefits Administrator

HR Operations Manager

Compensation and Benefits Manager

Employee Relations Manager

Corporate Secretary

Chief Human Resources Officer

HR Specialist

Payroll Manager

Labor Relations Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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