The Discontinuation Of Services Letter To Employee is a critical document used in the Philippine employment context when an employer needs to formally terminate an employment relationship. It must be drafted in strict compliance with the Labor Code of the Philippines and DOLE regulations, which mandate specific requirements for employment termination, including proper notice periods, just or authorized causes, and due process. This document serves multiple purposes: it provides official notification of employment termination, documents the reasons for separation, outlines the transition process, and specifies final pay arrangements. The letter is essential for legal compliance and risk management, helping prevent potential labor disputes while ensuring proper documentation of the termination process. It should be used whenever employment is terminated, whether due to company restructuring, performance issues, end of contract, or other valid reasons recognized under Philippine law.
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1. Company Letterhead: Official company letterhead including company name, address, and contact information
2. Date: Current date when the letter is issued
3. Employee Information: Complete name and address of the employee
4. Subject Line: Clear indication that this is a notice of discontinuation of services
5. Formal Notice: Clear statement of employment termination and effective date
6. Reason for Termination: Brief explanation of the grounds for discontinuation of services
7. Notice Period: Specification of the notice period as required by Philippine labor laws
8. Final Pay Details: Information about final salary, benefits, and other entitlements
9. Company Property: List of company properties to be returned and deadline
10. Closing Statement: Professional closing with information about final procedures
11. Signature Block: Space for authorized signatory's name, title, and signature
1. Severance Package: Details of any severance pay or additional benefits, if applicable
2. Non-Compete Reminder: Reminder of any existing non-compete agreements, if previously signed
3. Reference Provision: Information about company policy on providing references
4. Continuation of Benefits: Details about any benefits that continue post-employment
5. Legal Rights Statement: Statement about employee's legal rights and appeal process, particularly relevant in case of termination for cause
6. Exit Interview: Information about exit interview arrangements, if company policy requires one
7. Certificate of Employment: Information about obtaining certificate of employment and other documentation
1. Final Pay Computation: Detailed breakdown of final pay including salary, pro-rated benefits, and deductions
2. Company Property Checklist: Itemized list of company properties to be returned
3. Clearance Requirements: List of departments/persons from whom clearance must be obtained
4. Benefits Summary: Summary of benefits status and post-employment benefit details
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