Permanent Layoff Letter Template for Philippines

The Permanent Layoff Letter is a crucial document used in Philippine business operations when implementing workforce reduction due to authorized causes under the Labor Code of the Philippines. This document is essential when companies need to terminate employment relationships due to business necessity, such as redundancy, retrenchment, or organizational restructuring. The letter must be issued in compliance with Philippine labor laws, which require a 30-day advance notice period and proper computation of separation benefits. A well-drafted Permanent Layoff Letter should include clear explanations of the termination reason, effective date, separation package details, final pay computation, and clearance procedures. It serves as both a legal requirement and a formal communication tool, protecting both employer and employee interests while ensuring compliance with statutory requirements.

1. Letter Header: Company letterhead, date, and formal addressing of the employee including their full name, position, and department

2. Subject Line: Clear indication that this is a Notice of Permanent Layoff/Employment Termination

3. Opening Statement: Professional and respectful introduction stating the purpose of the letter

4. Legal Basis and Reason: Citation of relevant provisions of the Labor Code and specific business reasons for the layoff (e.g., redundancy, retrenchment, or business closure)

5. Effective Date: Clear statement of the last day of employment, ensuring compliance with the 30-day notice requirement

6. Separation Benefits: Detailed explanation of the separation package, including computation of separation pay and other statutory benefits

7. Final Pay Details: Information about final salary, unused leave credits, pro-rated 13th month pay, and other compensation

8. Company Property: Instructions regarding the return of company property and completion of clearance procedures

9. Closing Statement: Expression of gratitude for service and information about certificate of employment

10. Signature Block: Space for authorized signatory's name, position, and signature