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Separation Agreement And Release

Separation Agreement And Release Template for Philippines

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Key Requirements PROMPT example:

Separation Agreement And Release

"I need a Separation Agreement and Release for a senior software developer who is voluntarily resigning from our tech company in Manila, with an agreed last working day of March 15, 2025, including provisions for confidentiality and IP protection due to their access to critical company projects."

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Document background
The Separation Agreement and Release is a crucial document used in the Philippines when formally ending an employment relationship, whether through mutual agreement, resignation, or termination. It serves as a comprehensive record of the separation terms while providing legal protection for both employer and employee. The agreement must comply with Philippine Labor Code requirements and DOLE regulations, including proper computation of separation benefits, final pay, and other statutory entitlements. It typically includes detailed provisions on financial settlements, confidentiality obligations, release of claims, and post-employment restrictions where applicable. This document is particularly important in the Philippine context, where employment laws strongly favor worker protection, and proper documentation of separation terms is essential for preventing future disputes.
Suggested Sections

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

2. Background: Brief history of employment relationship, reason for separation, and context of the agreement

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Separation Date', and other relevant terms

4. Separation Terms: Details of employment termination, including last working day and immediate obligations

5. Separation Benefits: Comprehensive breakdown of all financial benefits, including statutory and additional payments

6. Final Pay Computation: Detailed calculation of final pay, including pro-rated 13th month pay, unused leave credits, and other entitlements

7. Tax Treatment: Clarification of tax obligations and treatments of various payment components

8. Release and Waiver: Employee's release of claims against the employer, subject to Philippine law requirements

9. Company Property: Requirements for return of company property and confidential information

10. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

11. Non-disparagement: Mutual agreements regarding non-disparagement

12. References: Agreement on handling of employment references and certificates

13. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-compete: Restrictions on future employment, if applicable and enforceable under Philippine law

2. Post-employment Benefits: Any continuing benefits such as health insurance coverage or retirement benefits

3. Rehire Eligibility: Statement regarding future employment eligibility with the company

4. Cooperation in Transition: Terms for employee's assistance in transitioning responsibilities

5. Stock Options/Equity: Treatment of any outstanding stock options or equity compensation

6. Legal Consultation: Acknowledgment of opportunity to seek legal counsel, recommended for senior employees

7. Collective Bargaining Agreement Compliance: Required for unionized employees to ensure compliance with CBA terms

8. Dispute Resolution: Alternative dispute resolution procedures, if preferred over court proceedings

Suggested Schedules

1. Schedule A - Separation Payment Calculation: Detailed breakdown of all separation payments and calculations

2. Schedule B - Company Property Checklist: List of company property to be returned and confirmation of return

3. Schedule C - Benefits Summary: Summary of benefits and their treatment post-separation

4. Schedule D - Outstanding Obligations: List of any outstanding loans, advances, or other obligations

5. Appendix 1 - Clearance Form: Standard DOLE-compliant clearance form

6. Appendix 2 - Certificate of Employment: Draft certificate of employment

7. Appendix 3 - Quitclaim: Separate quitclaim document if required by company policy

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Company
Confidential Information
Effective Date
Employee
Final Pay
Last Working Day
Parties
Release
Separation Benefits
Separation Date
Claims
Company Property
Consideration
Employment Period
Trade Secrets
Intellectual Property Rights
Non-Disparagement Obligation
Outstanding Obligations
Statutory Benefits
Terminal Pay
13th Month Pay
Accrued Benefits
Clearance Requirements
Proprietary Information
Released Parties
Separation Payment
Termination
Waiver
Work Product
Clauses
Interpretation
Termination of Employment
Separation Benefits
Final Pay Computation
Release and Waiver
Confidentiality
Non-Disparagement
Return of Property
Post-Employment Obligations
Tax Provisions
References and Certificates
Non-Admission
Severability
Governing Law
Dispute Resolution
Entire Agreement
Amendment
Survival
Assignment
Acknowledgment
Legal Representation
Notice
Execution
Cooperation
Non-Competition
Non-Solicitation
Compliance with Laws
Statutory Benefits
Data Privacy
Force Majeure
Relevant Industries

Banking and Financial Services

Information Technology

Manufacturing

Retail

Healthcare

Professional Services

Education

Telecommunications

Business Process Outsourcing

Construction

Energy

Transportation and Logistics

Real Estate

Mining

Agriculture

Entertainment and Media

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Research and Development

Production

Quality Assurance

Customer Service

Administration

Business Development

Executive Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Department Manager

Senior Manager

Project Manager

Software Developer

Account Executive

Sales Representative

Administrative Staff

Human Resources Manager

Operations Manager

Technical Lead

Customer Service Representative

Marketing Manager

Financial Analyst

Research Scientist

Production Supervisor

Quality Assurance Specialist

Business Development Manager

Executive Assistant

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, including provisions on termination, separation pay, and other benefits
Civil Code of the Philippines (Republic Act No. 386): Provides legal framework for contracts, releases, and quitclaims, particularly Articles 1305-1422 on Contracts and Articles 1423-1430 on Releases
DOLE Department Order No. 147-15: Guidelines on the implementation of post-employment clearance and the processing of terminal/separation pay
Republic Act No. 8424 (Tax Code): Provisions on taxation of separation pay and other benefits, including tax-exempt portions of separation packages
Republic Act No. 11199 (Social Security Act): Requirements regarding SSS contributions and benefits related to employment separation
DOLE Department Order No. 18-A: Guidelines on employee separation, particularly regarding security of tenure and just causes for termination
Article 13 of the 1987 Philippine Constitution: Constitutional provisions protecting labor rights and promoting full employment
Republic Act No. 1052, as amended by RA 6686: Law requiring payment of separation pay to employees in certain instances
DOLE Department Advisory No. 01-2019: Guidelines on the payment of final pay and certification of employment
Batas Pambansa Blg. 130: Amendments to the Labor Code regarding collective bargaining and employment termination procedures
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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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