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Simple Separation Agreement Template for Philippines

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Key Requirements PROMPT example:

Simple Separation Agreement

"I need a Simple Separation Agreement for a senior software developer who has resigned to join a competitor, with their last working day being March 15, 2025; the agreement needs to include strong non-compete and confidentiality provisions due to their access to sensitive technical information."

Document background
The Simple Separation Agreement serves as a crucial document in Philippine employment relations, used when formally ending an employment relationship through mutual agreement or unilateral termination. This document, governed by the Philippine Labor Code and related DOLE regulations, ensures proper documentation of separation terms while protecting both employer and employee rights. The agreement typically becomes necessary during resignations, terminations, redundancies, or mutual separation scenarios. It must include specific elements required by Philippine law, such as computation of final pay, separation benefits, and clearance procedures. A properly executed Simple Separation Agreement helps prevent future disputes by clearly outlining all terms of separation, including financial settlements, continuing obligations, and releases of claims, while ensuring compliance with local labor regulations and jurisprudence.
Suggested Sections

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

2. Background: Brief history of employment relationship, including start date, position, and reason for separation

3. Definitions: Key terms used throughout the agreement

4. Effective Date of Separation: Clear statement of the employee's last working day and when the separation takes effect

5. Final Settlement: Details of all financial settlements, including salary, benefits, and separation pay as required by Philippine Labor Code

6. Release and Waiver: Mutual release of claims subject to receipt of payments and benefits

7. Return of Company Property: Requirements for returning company assets, documents, and other properties

8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

9. Governing Law: Specification that the agreement is governed by Philippine law

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Competition: Restrictions on working for competitors, if applicable and reasonable under Philippine law

2. Non-Solicitation: Restrictions on soliciting employees or customers, if applicable

3. Post-Employment Assistance: Terms of any transition support or assistance provided to the employee

4. Certificate of Employment: Agreement to provide employment certification and reference terms

5. Tax Provisions: Special tax considerations or arrangements, if applicable

6. Medical Benefits Extension: Terms for extending medical benefits beyond separation date, if offered

7. Retirement Benefits: Special provisions if the separation is retirement-related

Suggested Schedules

1. Schedule A - Computation of Final Settlement: Detailed breakdown of all payments including basic pay, pro-rated 13th month pay, unused leave, separation pay, and other benefits

2. Schedule B - Company Property Checklist: List of all company property to be returned

3. Schedule C - Benefits Summary: Details of any continuing or terminated benefits

4. Appendix 1 - Clearance Form: Standard company clearance form required by Philippine practice

5. Appendix 2 - Certificate of Employment Template: Format of the certificate of employment to be provided

6. Appendix 3 - Quitclaim: Standard quitclaim form compliant with DOLE requirements

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

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Relevant Industries

Manufacturing

Information Technology

Business Process Outsourcing

Financial Services

Retail

Healthcare

Education

Construction

Hospitality

Professional Services

Telecommunications

Transportation and Logistics

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Finance

Compensation and Benefits

Risk Management

Corporate Governance

Relevant Roles

HR Manager

HR Director

Legal Counsel

Compliance Officer

HR Business Partner

Employee Relations Manager

HR Operations Manager

Legal Manager

Chief Human Resources Officer

Labor Relations Specialist

HR Administrator

Compensation and Benefits 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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