The End of Term Letter is a critical document used in the Philippines to formally conclude an employment relationship, whether due to contract completion, retirement, resignation, or other termination circumstances. It serves as an official record that complies with Philippine Labor Code requirements and DOLE regulations, documenting the final arrangements between employer and employee. The letter typically includes essential information such as the effective date of termination, final pay details, clearance requirements, and any continuing obligations. This document is particularly important in the Philippine context as it helps ensure compliance with local labor laws while providing both parties with clear documentation of the employment conclusion. The End of Term Letter also serves as a reference for future employment verification and helps prevent potential disputes regarding the terms of employment termination.
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1. Letter Date and Address Block: Complete date and proper addressing to the employee including their position and department
2. Subject Line: Clear indication that this is an End of Term Letter
3. Acknowledgment of Service: Recognition of the employee's service period and confirmation of the employment end date
4. Reason for Termination: Clear statement of the basis for the end of employment (e.g., contract completion, project end)
5. Final Pay Information: Overview of final salary, benefits, and other compensation to be provided
6. Clearance Requirements: List of required clearances and documents needed from the employee
7. Company Property Return: Details of company assets to be returned
8. Certificate of Employment: Confirmation that a certificate of employment will be provided
1. Retirement Benefits: Include when the end of term is due to retirement, detailing specific retirement benefits
2. Project Completion Statement: Include for project-based employment, acknowledging successful completion of assigned projects
3. Reference Offer: Optional offer to provide employment references
4. Non-Compete Reminder: Include if there are post-employment restrictions that need to be reminded
5. Continuation of Benefits: Include if certain benefits continue post-employment
6. Rehiring Eligibility: Include statement about future employment possibilities if applicable
1. Final Pay Computation: Detailed breakdown of final salary, prorated benefits, and other monetary entitlements
2. Leave Credits Summary: Calculation of unused leave credits and their monetary equivalent
3. Tax Computation: Breakdown of tax obligations and withholding tax on final pay
4. Clearance Checklist: List of departments/units that need to provide clearance and their status
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