The End of Contract Letter to Employee is a crucial document in Philippine employment practice, typically used when a fixed-term employment contract reaches its natural conclusion. This document is mandated by Philippine labor laws and must comply with the Labor Code of the Philippines and DOLE regulations. It serves multiple purposes: formally notifying the employee of contract completion, specifying the last working day, outlining final pay computation, detailing clearance procedures, and documenting the proper conclusion of the employment relationship. The letter should be issued with sufficient notice before the contract's end date, allowing proper transition and completion of clearance requirements. It's particularly important in industries with project-based or seasonal employment, and for companies employing fixed-term contract workers, as it provides legal protection for both employer and employee while ensuring compliance with local employment regulations.
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1. Letter Header: Company letterhead, date, and complete contact information
2. Employee Information: Full name and address of the employee, position/title
3. Subject Line: Clear indication that this is an End of Contract notice
4. Contract End Confirmation: Clear statement of the contract's end date and reference to the original fixed-term contract
5. Reason for Termination: Explicit mention that this is due to contract completion/expiration
6. Last Working Day: Clear specification of the final working day
7. Final Pay Information: Overview of final salary, benefits, and other entitlements
8. Clearance Requirements: List of clearance procedures and requirements for final pay release
9. Return of Company Property: List of company properties to be returned
10. Closing Statement: Expression of appreciation and good wishes
11. Signature Block: Space for authorized signatory's name, title, and signature
1. Certificate of Employment: Mention of availability of employment certificate, used when company policy is to provide this automatically
2. Continuation/Extension Option: Include when there's a possibility of contract renewal or extension
3. Non-Compete Reminder: Include if the original contract contained non-compete clauses
4. Reference Provision: Include if the company is willing to provide employment references
5. Exit Interview: Include if company policy requires an exit interview
6. Benefits Continuation: Include if there are any benefits that continue post-employment
7. Project Handover Requirements: Include for positions requiring formal handover of responsibilities
1. Final Pay Computation Sheet: Detailed breakdown of final pay including pro-rated 13th month pay, unused leave credits, and other monetary benefits
2. Clearance Checklist: Detailed list of departments/units that need to sign off for clearance
3. Company Property Checklist: Itemized list of company properties to be returned with their conditions
4. Certificate of Employment: Standard format of employment certificate to be issued
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