Termination Without Cause Contract Template for Philippines

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Key Requirements PROMPT example:

Termination Without Cause Contract

"I need a Termination Without Cause Contract under Philippine law for a senior software developer who has been with the company for 5 years, with termination effective March 15, 2025, including enhanced separation benefits and extended health coverage."

Document background
The Termination Without Cause Contract is essential in Philippine employment relationships where an employer wishes to end employment without attribution of fault to the employee. This document is particularly crucial given the Philippines' strong employee protection laws and strict requirements for termination procedures. It should be used when employment is being terminated for authorized causes under Article 298 of the Labor Code, such as installation of labor-saving devices, redundancy, retrenchment, or closure of business. The contract ensures compliance with statutory notice periods, separation pay requirements, and other mandatory benefits while providing clear documentation of the termination process. It protects both employer and employee interests by clearly stating all terms, conditions, and obligations related to the separation.
Suggested Sections

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

2. Background: Brief context of the employment relationship, including start date and current position

3. Definitions: Key terms used throughout the agreement including 'Effective Date', 'Termination Date', 'Final Pay', and 'Separation Benefits'

4. Notice of Termination: Formal statement of termination and notice period details in accordance with Philippine Labor Code requirements

5. Effective Date of Termination: Specific date when the employment relationship will end, considering the mandatory notice period

6. Final Pay and Benefits: Detailed breakdown of final salary, pro-rated 13th month pay, unused leave credits, and other statutory benefits

7. Separation Package: Details of any separation pay or additional benefits beyond statutory requirements

8. Return of Company Property: Requirements and timeline for returning company assets, documents, and other properties

9. Confidentiality Obligations: Ongoing obligations regarding confidential information post-termination

10. Release and Waiver: Mutual release of claims subject to fulfillment of agreement terms

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

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Non-Competition: Include when there's a need to restrict employee's future employment with competitors, subject to reasonable limitations under Philippine law

2. Non-Solicitation: Include when protecting against solicitation of employees or customers is necessary

3. Post-Employment Assistance: Include when offering outplacement services or job search assistance

4. Reference Letter: Include when the employer agrees to provide employment references

5. Medical Insurance Extension: Include when offering extended medical coverage beyond termination date

6. Stock Options/Equity: Include when addressing treatment of outstanding stock options or equity awards

7. Continuing Cooperation: Include when employee's assistance may be needed for transition or future matters

Suggested Schedules

1. Schedule A - Computation of Final Pay: Detailed calculation of all monetary entitlements including basic pay, pro-rated benefits, and statutory payments

2. Schedule B - Company Property Checklist: List of all company property to be returned with corresponding conditions and deadlines

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

4. Appendix 1 - Clearance Form: Standard company clearance form to be completed before final pay release

5. Appendix 2 - Certificate of Employment: Draft of the certificate of employment to be issued

6. Appendix 3 - Quitclaim Template: Form of quitclaim to be signed upon receipt of all termination benefits

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

Relevant Industries

Technology

Manufacturing

Financial Services

Retail

Healthcare

Professional Services

Education

Telecommunications

Construction

Hospitality

Mining

Agriculture

Business Process Outsourcing

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Employee Relations

Talent Management

Corporate Secretariat

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Department Manager

Senior Executive

Project Manager

Administrative Staff

Sales Representative

Technical Specialist

Operations Manager

Marketing Director

Software Developer

Account Manager

Production Supervisor

Research Analyst

Customer Service Representative

Industries
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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