The Termination Letter Due To Lack of Work is a crucial document used when Philippine companies need to reduce their workforce due to business conditions that result in decreased work requirements. This document is specifically governed by the Philippine Labor Code and DOLE regulations, requiring strict compliance with legal procedures including mandatory 30-day notice periods and specific separation pay calculations. The letter serves as official documentation of the termination process, protecting both employer and employee interests by clearly stating the reasons for termination, separation benefits, and other entitlements. It should be used when companies can demonstrate genuine business reasons for workforce reduction and must be supported by proper documentation of the business circumstances. The document helps ensure compliance with Philippine labor laws while maintaining professional standards in handling employee separations.
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1. Letter Header: Company letterhead, date, and formal addressing to the employee including their full name, position, and department
2. Subject Line: Clear indication that this is a Notice of Employment Termination Due to Lack of Work
3. Opening Statement: Professional opening that directly states the purpose of the letter and references the relevant provisions of the Labor Code
4. Business Circumstances: Clear explanation of the business conditions necessitating the reduction in workforce, including specific reasons for lack of work
5. Notice Period: Specification of the 30-day notice period and the effective date of termination
6. Separation Benefits: Detailed breakdown of separation pay and other statutory entitlements as per Article 298 of the Labor Code
7. Company Property: Instructions regarding the return of company property and handling of final clearance
8. Certificate of Employment: Confirmation that a certificate of employment will be provided
9. Gratitude Statement: Expression of appreciation for the employee's service and contribution
10. Closing: Formal closing with contact information for HR department and signature block for authorized company representative
1. Transition Arrangements: Include when there is a need for knowledge transfer or completion of specific projects before departure
2. Additional Benefits: Include when the company is offering benefits beyond the statutory requirements
3. Outplacement Support: Include when the company is providing job search assistance or career transition support
4. Non-Compete/Confidentiality Reminder: Include when there are existing confidentiality or non-compete agreements that remain in effect
5. Rehiring Possibility: Include when the company wishes to maintain the possibility of future re-employment
6. Medical Benefits Extension: Include when there are arrangements for extending medical coverage beyond termination date
1. Separation Pay Calculation: Detailed computation of separation pay and other financial benefits
2. Final Settlement Checklist: List of items to be settled before final clearance
3. Company Property Inventory: List of company assets to be returned
4. Employee Clearance Form: Standard clearance form to be completed before final settlement
5. DOLE Compliance Documents: Copies of required notifications and reports to DOLE
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