Document background
The Mutual Termination Of Employment Letter is a crucial document used when both employer and employee in the Philippines agree to end their employment relationship by mutual consent. It's particularly relevant when both parties wish to document an amicable separation that differs from standard resignation or termination procedures. The document must comply with Philippine labor laws, including the Labor Code and DOLE regulations, and typically includes essential details such as the agreed termination date, final settlement terms, benefit calculations, and mutual releases. This type of agreement is often used during company restructuring, when an employee seeks early release from their contract, or when both parties agree that continuing the employment relationship is no longer beneficial. The letter serves as official documentation of the separation terms and helps prevent future disputes by clearly outlining all agreed terms and conditions.
