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Termination Of Employment Contract

Termination Of Employment Contract Template for Philippines

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Key Requirements PROMPT example:

Termination Of Employment Contract

"I need a Termination of Employment Contract for a mutual separation agreement with our senior software developer, who will be leaving on March 15, 2025, with a comprehensive handover period and ongoing consultancy arrangements for 3 months post-termination."

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Document background
The Termination of Employment Contract is a crucial document used in the Philippines when formally ending an employment relationship, whether through resignation, just cause, authorized cause, or mutual agreement. It must strictly comply with the Philippine Labor Code, DOLE regulations, and relevant jurisprudence to be legally enforceable. This document is essential for protecting both employer and employee rights, documenting the terms of separation, including final settlements, benefits, clearance requirements, and ongoing obligations. The contract should be used whenever an employment relationship is being terminated to ensure proper documentation and legal compliance, helping prevent future disputes and ensuring all statutory requirements are met. Special attention must be given to procedural due process requirements under Philippine law, including proper notice and hearing when applicable.
Suggested Sections

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

2. Background: Brief description of the employment relationship, including original employment date, position, and reference to the original employment contract

3. Definitions: Key terms used in the termination agreement

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

5. Effective Date: Specific date when the employment relationship will end

6. Final Settlement: Details of final salary, benefits, and other monetary considerations including separation pay if applicable

7. Company Property: List of company properties to be returned and deadline for return

8. Confidentiality Obligations: Ongoing obligations regarding confidential information

9. Release and Quitclaim: Mutual release of claims and liabilities

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

11. Execution: Signature blocks for both parties

Optional Sections

1. Non-Competition: Include when there is a need to restrict the employee from working with competitors for a reasonable period

2. Non-Solicitation: Include when there is a need to prevent the employee from soliciting company clients or employees

3. Transition Plan: Include when the employee needs to handle knowledge transfer or project handover

4. Reference Agreement: Include when parties agree on how employment references will be handled

5. Post-Employment Benefits: Include when there are continuing benefits after termination

6. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods

7. Reinstatement Waiver: Include when the termination is by mutual agreement and parties want to explicitly waive reinstatement rights

Suggested Schedules

1. Schedule A - Final Settlement Computation: Detailed breakdown of final pay, including basic salary, pro-rated 13th month pay, unused leave credits, and separation pay if applicable

2. Schedule B - Company Property Inventory: Detailed list of company properties to be returned

3. Schedule C - Certificate of Employment: Draft of the certificate of employment to be issued

4. Appendix 1 - Clearance Form: Standard company clearance form to be completed before final settlement

5. Appendix 2 - DOLE Requirements Checklist: Checklist ensuring compliance with Department of Labor and Employment requirements

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

Manufacturing

Information Technology

Business Process Outsourcing

Financial Services

Retail

Healthcare

Education

Construction

Hospitality

Telecommunications

Professional Services

Transportation and Logistics

Real Estate

Energy and Utilities

Agriculture

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Administrative Services

Corporate Secretariat

Management

Operations

Labor Relations

Relevant Roles

HR Manager

HR Director

Legal Counsel

Compliance Officer

Employee Relations Manager

HR Business Partner

Chief Human Resources Officer

Labor Relations Specialist

HR Operations Manager

Department Manager

Line Manager

General Manager

Chief Executive Officer

Company Secretary

Administrative Officer

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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