Document background
An Employee Severance Agreement is a crucial document used when formally ending an employment relationship in the Philippines. It serves to protect both employer and employee interests by clearly documenting the terms of separation, including severance payments, benefits, and mutual obligations. The agreement must comply with Philippine Labor Code requirements, DOLE regulations, and relevant employment laws. It is typically used in scenarios of voluntary resignation, mutual separation, or termination without cause, providing legal certainty and closure for both parties. The document helps prevent future disputes by clearly outlining financial terms, confidentiality obligations, and release of claims, while ensuring all statutory requirements under Philippine law are met.
