The Service Termination Letter is a crucial document in Philippine employment practice, used when an employer needs to formally end an employment relationship. It must strictly adhere to the requirements set forth in the Philippine Labor Code and DOLE regulations, which mandate specific content, notice periods, and procedural requirements. The document serves multiple purposes: it formally communicates the termination decision, specifies the grounds for termination, outlines the employee's rights and obligations, and details the final settlement terms. A properly drafted Service Termination Letter is essential for legal compliance and risk management, as improper termination procedures can result in claims of illegal dismissal under Philippine law. The document should be prepared with careful attention to both legal requirements and human resource best practices, ensuring clear communication while maintaining professionalism and respect.

1. Letterhead and Date: Company letterhead, current date, and reference number if applicable

2. Recipient Details: Employee's complete name, position, and department

3. Subject Line: Clear indication that this is a termination notice

4. Notice of Termination: Clear statement of employment termination and effective date

5. Reason for Termination: Specific, legal grounds for termination as per Philippine Labor Code

6. Termination Details: Information about final pay, benefits, clearance procedures, and company property return

7. Acknowledgment Section: Space for employee signature acknowledging receipt of the notice

8. Signatory Block: Authorized company representative's name, position, and signature