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Employment Termination Agreement

Employment Termination Agreement Template for Philippines

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Key Requirements PROMPT example:

Employment Termination Agreement

"I need an Employment Termination Agreement for a senior software developer in our Manila tech startup who is leaving through mutual agreement on March 15, 2025, including non-compete and IP protection clauses."

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Document background
The Employment Termination Agreement is a crucial document used in the Philippines when formally ending an employment relationship, whether through mutual agreement, redundancy, or other legitimate grounds recognized by Philippine labor law. It must comply with the Labor Code of the Philippines and DOLE regulations, particularly regarding notice periods, final pay computation, and separation benefits. This agreement is essential for documenting the terms of separation, including financial settlements, continuing obligations, and mutual releases, while ensuring all statutory requirements are met. It serves as a protective measure for both parties by clearly defining their rights and obligations post-employment, helping prevent future disputes and ensuring proper documentation for regulatory compliance.
Suggested Sections

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

2. Background: Brief history of employment relationship, including start date, position, and general circumstances leading to termination

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Final Pay', 'Separation Pay', etc.

4. Termination of Employment: Clear statement of employment termination, specifying the effective date and nature of termination

5. Final Pay and Benefits: Detailed breakdown of final salary, pro-rated 13th month pay, unused leave credits, and other statutory benefits

6. Separation Package: Details of separation/severance pay and additional benefits being provided

7. Tax Treatment: Clarification on the tax treatment of various payments and benefits

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

9. Confidentiality Obligations: Ongoing obligations regarding confidential information post-employment

10. Release and Waiver: Mutual release of claims and waiver of rights, subject to receipt of agreed payments

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

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Competition: Restrictions on working for competitors, used when employee had access to sensitive information

2. Non-Solicitation: Restrictions on soliciting employees or customers, included for senior positions

3. Post-Employment Assistance: Terms of any outplacement or transition support, included in redundancy scenarios

4. Reference Letter: Terms regarding the provision of employment references, included in amicable separations

5. Insurance and Benefits Continuation: Details of any extended insurance coverage or benefits, used in negotiated exits

6. Mutual Non-Disparagement: Agreements not to make negative statements, included in senior executive terminations

7. Future Cooperation: Terms for assistance in handover or future inquiries, used for key positions

8. Certificate of Employment: Terms regarding the issuance of employment certificates, included when specifically requested

Suggested Schedules

1. Schedule 1 - Calculation of Final Pay: Detailed computation of final pay including basic salary, pro-rated benefits, and deductions

2. Schedule 2 - Separation Benefits Computation: Detailed calculation of separation/severance pay and other termination benefits

3. Schedule 3 - Company Property Checklist: List of company properties to be returned with acknowledgment section

4. Schedule 4 - Clearance Requirements: Checklist of clearance requirements from various departments

5. Appendix A - Statutory Declaration: Employee's declaration of receipt of payments and benefits as required by DOLE

6. Appendix B - Quitclaim Template: Standard form of quitclaim to be executed upon receipt of all payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Technology

Manufacturing

Financial Services

Retail

Healthcare

Education

Professional Services

Telecommunications

Construction

Hospitality

Mining

Agriculture

Transportation

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

Administration

Production

Quality Assurance

Research and Development

Customer Service

Business Development

Corporate Affairs

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Department Head

Senior Manager

Project Manager

Software Engineer

Account Executive

Sales Representative

Administrative Officer

Production Supervisor

HR Manager

Financial Analyst

Marketing Coordinator

Operations Manager

Technical Support Specialist

Research Analyst

Customer Service Representative

Quality Assurance Officer

Business Development Manager

Executive Assistant

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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