Retrenchment Letter Sample

This is a Retrenchment Letter Sample you may use as a guide.

RETRENCHMENT LETTER SAMPLE – Here are some important tips and guidelines in writing a formal and professional retrenchment letter.

In many companies and businesses, to fire an employee temporarily or permanently is possible. It happens for reasons like a surplus of labor or incapacity of employees to match the performance standards of the company. In incidents like this, a retrenchment letter for formalities is needed, thus, a sample letter of this is provided below.

Also, under Article 283 of the Labor Code, to dismiss workers under the ground of retrenchment to prevent serious losses is a right of the management. However, for this to be effective, the management must have evidence and proof of losses because if none, this will be declared illegal and of no effect.

Check out a sample letter below:

August 20, 2020

Dear Mr. Jon Cruz:

I regret to inform you that you are being laid off from your position as a Writer and Illustrator of ABC Book Publishing Corporation effective August 25, 2020.

It has become necessary for the company to lay off 60% of the workforce due to the Coronavirus Disease 2019 (COVID-19) pandemic. We assure you to contact you regarding potential return dates as we learn more about this matter. You will receive the following laying off benefits:

– 180 days coverage of life insurance from the last day paid
– The company will compensate for your unused vacation leave
– You will receive Php 100,000.00 as severance pay

You are also required to return everything that the company owns such as the laptop, car, company ID, and cellphone.

Thank you for your continued contributions to the company. If you have any further questions about your benefits, please don’t hesitate to contact Raul Santos at 666-6666.


Nicki Suarez
HR Head, ABC Book Publishing Corporation


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