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Last updated on 2 February 2024
Employees in the Philippines enjoy security of tenure which means that an employee can be dismissed only: (a) for causes provided by law; and (b) after due process is observed.
Employers can dismiss an employee based only on just and authorized causes. Just causes are based on acts attributable to an employee’s own wrongful actions or negligence (i.e. insubordination, habitual tardiness). Authorized causes refer to lawful grounds for termination which do not arise from the employee’s fault or negligence (i.e. closure of the business, retrenchment to prevent losses).
On the other hand, due process refers to the employee’s right to be informed of the reason for his dismissal and, in case of just cases, an opportunity to defend himself.
An Employee Termination Letter helps satisfy both of the above requirements by informing the employee that his employment is being terminated and the reason for the same.
You need an Employee Termination Letter if you intend to dismiss your employee. There are many reasons for dismissing an employee but this letter is based on closing the business for business reasons and not due to serious business losses.
If you will dismiss the employee for another reason, kindly use the appropriate document below:
The letter also serves as a written record of the employee’s dismissal which may become necessary later on if the employee questions the legality of his dismissal. Before terminating an employee it is important to review the employment contract, employee handbook and any other HR policy to determine the requirements and procedure for terminating an employee. These precautions will help avoid allegations of wrongful termination down the line.
To create your Employee Termination Letter you’ll need the following minimum information:
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Activities that involve a Employee Termination Letter due to Closure of the Business (but not resulting from serious business losses) sometimes use the following documents. You may be interested in them: