22 July 2013

Name
OIC/Owner
Company

Dear Ms. Perez:

I have been a faithful employee, as a van driver, of your company since June 2004 up until March 2014,
when your company decided to sell the van I am driving. I have even helped you find a buyer for the said
van due to your promise that you will be buying a new van which I will then drive when the school year
starts in June 2014. However, it was my complete shock when I learned that you have decided not to
replace the van and let go of my services instead.

In these 10 years of employment, I have rendered my services upon your expectations, that is why it
really saddened me when I lost my employment, the sole source of my familys income, in such a short
notice. While I understand that it is a business decision you had to make, I am aware of my rights as a
regular employee of your company as provided by the Philippine Labor Code:

Art. 283. Closure of establishment and reduction of personnel. The employer may also
terminate the employment of any employee due to the installation of labor-saving devices,
redundancy, retrenchment to prevent losses or the closing or cessation of operation of the
establishment or undertaking unless the closing is for the purpose of circumventing the provisions
of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment
at least one (1) month before the intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to
a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for
every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases
of closures or cessation of operations of est ablishment or undertaking not due to serious
business losses or financial reverses, the separation pay shall be equivalent to one (1) month
pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction
of at least six (6) months shall be considered one (1) whole year.


As mentioned, I have served for 10 years and my last monthly salary rate is _____. In line with this,
please consider this as my demand letter for your compliance in the above state-mandated benefits for
a total of _____amount in words ______(P_____) computed as my month pay multiplied by 10 years. I
am expecting to receive my separation pay within 30-60 days from the date of termination of my
employment (June 2014) as provided by the Labor Code. In consideration of the 10 years of
employment, it is my hope that we can settle this amicably otherwise, I hereby reserve any and all rights
of action to proceed before the Department of Labor and Employment.

Thank you very much and I am hoping for your immediate positive action on this matter.

Sincerely;


Name