Affidavit of Termination of Employment: When and How to Use It (Philippines)

An Affidavit of Termination of Employment is a notarized, sworn statement that memorializes the facts surrounding the end of an employee’s engagement with a company. It is not legally required in every separation, but it’s widely used to prove or explain termination to government agencies, banks, embassies, arbitrators, and courts, and to support internal records and compliance filings.

This article explains when the affidavit is helpful, who should sign it, what it must contain, how to draft and notarize it, and common pitfalls—grounded in Philippine labor law and practice.

1) When is an affidavit useful (and when is it not)?

Common, appropriate uses

Government or third-party transactions When a government office, embassy, bank, or insurer needs proof of separation, especially where a simple HR certification won’t suffice (e.g., visa cancellations/changes, benefit claims, background checks).
Litigation and labor disputes As evidence in DOLE/NLRC cases (illegal dismissal, money claims), the employer or witnesses may execute affidavits narrating due-process steps and the factual grounds for termination; the employee may counter with their own affidavit.
Corporate record-keeping To complete an internal case file for terminations based on just causes (e.g., serious misconduct) or authorized causes (redundancy, retrenchment, closure, disease), capturing dates, notices, meetings, computations, and turnover.
Inter-company verification When a prospective employer requests more than a basic Certificate of Employment (COE), parties sometimes rely on a sworn narrative from the former employer or employee.

Situations where it’s not a substitute

Statutory notices An affidavit does not replace the required twin-notice rule for just-cause terminations (notice to explain + notice of decision) or the 30-day written notice to both employee and DOLE for authorized-cause terminations.
Government certifications Some benefits require a specific DOLE/agency certificate (e.g., certification of involuntary separation). An affidavit may support—but not replace—those official documents.
COE and final pay timelines DOLE guidelines separately require timely final pay and issuance of COE upon request; an affidavit doesn’t extend deadlines.

2) Legal background you should align with

Just causes (termination due to employee fault): serious misconduct, willful disobedience, gross and habitual neglect, fraud or breach of trust, commission of a crime, and similar grounds. Requires substantive just cause and procedural due process (twin-notice + opportunity to be heard).
Authorized causes (business/health-based): redundancy, retrenchment to prevent losses, closure/not due to serious losses, installation of labor-saving devices, and disease not curable within six months and prejudicial to health. Requires 30-day notice to the employee and DOLE, and payment of separation pay where applicable.
Other separation modes: resignation, retirement, end of project/seasonal engagement, fixed-term expiry, probationary failure to qualify, abandonment (requires proof of intent to sever and employer’s due process efforts).

Your affidavit should harmonize with whichever legal path actually occurred.

3) Who should sign the affidavit?

Employer’s Affidavit Typically signed by the HR Head, Authorized HR Officer, or Company Representative with personal knowledge of the facts. If the signer’s authority could be questioned, attach a Secretary’s Certificate/Board Resolution or Special Power of Attorney (for non-corporate entities).
Employee’s Affidavit Signed by the employee to confirm resignation, to narrate their version of events (e.g., disputing a dismissal), or to support third-party requirements.
Witness Affidavit Signed by supervisors, investigators, IT custodians, auditors, or co-workers who personally observed incidents or handled evidence (CCTV, emails, audit trails).

4) What should the affidavit contain?

At minimum:

Title: “Affidavit of Termination of Employment” (or “Affidavit of Separation from Employment”).
Affiant’s identity: Full name, nationality, civil status, residence, and company position (if employer-side).
Capacity/authority (employer-side): State role and authority to execute the affidavit; attach proof if needed.
Employment details: Company name and address; employee’s full name, position, department, start date, employment status (regular, probationary, project, fixed-term).
Ground for termination: Specify just cause/authorized cause/other mode (resignation, retirement, end of contract), tracking the precise legal ground used.
Due process steps (if just cause): Dates of notice to explain, receipt, administrative conference/hearing, representation allowed, written explanations, notice of decision.
Statutory notices (if authorized cause): Date of 30-day notice to employee and DOLE; attach DOLE proof of filing/receipt if available.
Effectivity date: Last working day.
Financials and clearances:
- Final pay items (earned salary, pro-rated 13th month, unused leave convertible to cash, allowances/commissions if due).
- Separation pay (if applicable): state formula, rate, and amount.
- Loans/advances set-off, return of company property, clearance status.
- Tax treatment (note if separation pay is tax-exempt due to causes beyond employee’s control; otherwise subject to withholding).
Government reports/updates (if any): DOLE termination report for authorized causes; updates to SSS, PhilHealth, and Pag-IBIG records as needed.
Attachments: Copies of notices, acknowledgments, minutes, investigation reports, audit logs, medical certificates (for disease), organizational approvals, payroll computations, and clearance forms.
Data privacy: State that disclosures are limited to lawful purposes, with reasonable safeguards per the Data Privacy Act.
Prayer/statement of truth: Affiant declares the statements are true and correct of personal knowledge and/or based on authentic records.
Notarial jurat: Proper notary block, place, date, and presentation of competent evidence of identity.

5) Notarization: formalities and good practice

Appear before a notary public with competent evidence of identity (e.g., government-issued photo ID). Corporate signers should bring proof of authority to sign.
Ensure the notary block matches the place and date of signing.
For remote notarization, follow any applicable electronic/notarial rules in the locality; when in doubt, use in-person notarization.
Keep originals of critical attachments (e.g., notices, receipts).

6) Separation pay and final pay: what to reflect

Separation pay (if applicable)
- Authorized causes commonly involve:
  - Redundancy/installation of labor-saving devices: usually at least one month pay or one month per year of service, whichever is higher (check exact company policy/CBAs and the law’s ratios).
  - Retrenchment/closure not due to serious losses: typically one month pay or one-half month per year of service, whichever is higher.
- Just causes: no separation pay, unless granted ex gratia or by CBA/company policy.
- Disease: separation pay due if permanent and prejudicial, with proper medical certification.
Final pay typically includes earned wages, pro-rated 13th month, monetized unused leave (if monetizable by policy), and other amounts due less lawful deductions. Reflect the target release date consistent with DOLE guidance and company policy.
Tax
- Separation benefits due to causes beyond the employee’s control (e.g., redundancy, retrenchment, closure, disease) are generally income-tax-exempt.
- Payments due to resignation or just cause termination are generally taxable, subject to standard withholding.

(When exact rates/formulas differ by policy or CBA, mirror the precise rule applied and attach the basis.)

7) Relationship to other documents

Notice to Explain (NTE) and Notice of Decision (for just cause): The affidavit should reference and attach them; it does not cure missing due process.
30-day Notices & DOLE report (for authorized causes): Attach proofs (registry receipts/email acknowledgments).
Quitclaim and Release: A separate instrument. If used, ensure it’s voluntary, informed, supported by reasonable consideration, and not obtained through fraud or coercion. A notarized quitclaim can bar future claims if valid—but courts set it aside if unfair.

8) Step-by-step: employer-side workflow

Identify the correct legal ground and track dates.
Complete due process (twin-notice + hearing) or 30-day notices to employee and DOLE, as applicable.
Compute payables (final pay, separation pay if any); prepare clearance logistics.
Draft the affidavit with attachments; ensure accuracy and consistency with notices and payroll records.
Have the proper officer sign; attach proof of signing authority if necessary.
Notarize the affidavit.
Release final pay and documents (COE, payslips, tax forms, quitclaim if used) per policy and DOLE guidance.
Update agencies and records (SSS, PhilHealth, Pag-IBIG, BIR forms as required).
Store the file under your retention policy with privacy safeguards.

9) Step-by-step: employee-side workflow

Clarify your separation mode (resignation vs. termination vs. authorized cause) and collect your documents.
Draft your affidavit (e.g., to support a claim, a visa application, or to contest dismissal).
Attach evidence (emails, memos, notices, chat logs, CCTV screenshots, medical certificates).
Notarize the affidavit.
Request COE and final pay per DOLE guidance; review computations; sign a quitclaim only if voluntary and accurate.
Use the affidavit only where required; prefer official DOLE/agency certifications when specifically mandated.

10) Data privacy and defamation safeguards

Include only necessary personal data; redact sensitive information (health, financials) unless legally needed.
Stick to verifiable facts; avoid gratuitous character judgments.
Limit recipients to those with a legitimate interest (e.g., agency requiring the document, court, new employer with authorization).

11) Templates (editable samples)

Note: Replace bracketed fields and tailor grounds, amounts, and dates to the actual case. Keep annex labels consistent.

A) Employer’s Affidavit of Termination of Employment

AFFIDAVIT OF TERMINATION OF EMPLOYMENT

I, [Name], of legal age, [nationality], [civil status], with office address at [Company Address], after having been duly sworn in accordance with law, state:

1. I am the [Position] of [Company], duly authorized to execute this Affidavit. Attached as Annex “A” is my proof of authority.
2. [Employee Name] (“Employee”) was hired on [Start Date] as [Position], assigned to [Department], under [status: probationary/regular/fixed-term/project].
3. On [dates], the Company implemented the following due-process steps: [notice to explain dated ___; receipt acknowledged on ___; conference/hearing on ___; written explanation on ___; notice of decision dated ___].
   [OR, for authorized cause: On [Date], the Company served written notice to the Employee and the DOLE, to take effect on [Date], stating the authorized cause of [redundancy/retrenchment/closure/disease]. Annex “B” is the DOLE filing/receipt.]
4. The Employee’s employment was terminated effective [Effectivity Date] on the ground of [specific ground], consistent with [policy/CBA] and the Labor Code.
5. Financials: The Employee’s final pay consists of [items], amounting to [Php ___]. [Separation pay formula and amount, if applicable.] Deductions: [if any]. Target release: [Date], subject to clearance.
6. The Employee was requested to return company property and complete clearance. As of [Date], [status].
7. This Affidavit is executed to attest to the foregoing facts for submission to [agency/court/requestor] and for record-keeping.

I attest to the truthfulness of the foregoing based on my personal knowledge and official records.

[Signature over printed name]
[Position], [Company]

SUBSCRIBED AND SWORN before me this [Date] at [City], affiant exhibiting [ID Type/No., Date/Place of Issue].
Notary Public
Doc. No. ___; Page No. ___; Book No. ___; Series of ___.

B) Employee’s Affidavit (Neutral Proof of Separation)

AFFIDAVIT OF TERMINATION/SEPARATION FROM EMPLOYMENT

I, [Name], of legal age, [nationality], [civil status], and residing at [Address], state:

1. I was employed by [Company] as [Position] from [Start Date] until [Last Day].
2. My employment ended on [Effectivity Date] by reason of [authorized cause/termination for cause/resignation/fixed-term expiry], as shown in [attached notice/HR email/COE], marked as Annex “A”.
3. As of separation, I received/expect to receive the following: [final pay items, separation pay if any].
4. I execute this Affidavit to confirm my termination/separation for purposes of [state purpose: visa application, bank/insurance processing, etc.].

[Signature]

Jurat/Notary block

C) Witness Affidavit (Incident/Investigation)

WITNESS AFFIDAVIT

I, [Name], [Position], assigned to [Department], state on oath:

1. On [Date/Time], at [Place/Platform], I personally observed [incident].
2. [Detail observations, documents handled, system logs, CCTV retrieval steps].
3. I am executing this Affidavit to support the Company’s administrative action regarding [Employee Name].

[Signature]

Jurat/Notary block

12) Checklists

Employer checklist

Correct legal ground selected.
Due process completed and documented.
30-day notices (if authorized cause) + DOLE report acknowledged.
Consistent dates across notices, affidavit, payroll.
Separation pay formula applied correctly; tax treatment verified.
COE and final pay timelines met.
Privacy review done; sensitive data minimized.
Affidavit signed by authorized officer; notarized with proper ID.

Employee checklist

Identify separation mode and obtain copies of notices/COE.
Verify final pay/separation pay computations.
Draft and notarize the affidavit only if required by the receiving entity.
Keep originals and certified copies of attachments.
Use official DOLE/agency certifications where specifically required.

13) Frequent pitfalls to avoid

Using an affidavit to “paper over” missing notices—it won’t cure due process defects.
Vague or mislabeled grounds—e.g., calling a redundancy a performance issue; misalignment invites disputes.
Wrong or shifting dates—inconsistencies damage credibility.
Overdisclosure—unnecessary personal data or defamatory language.
No proof of authority—corporate affidavits without a Secretary’s Certificate or board authority may be challenged.
Unsigned/unnotarized drafts—these carry little to no evidentiary weight.

14) Practical tips

Draft from records outward: start with notices, minutes, logs, then write the affidavit to match—never the other way around.
Keep the tone factual and neutral; save arguments for pleadings.
Where a quitclaim is used, explain it separately and ensure it’s voluntary and adequately compensated.
Maintain a secure case file: affidavit + annexes, indexed and paginated for quick submission.

Final word

An Affidavit of Termination of Employment is a supporting document that proves and explains separation; it is most effective when it accurately mirrors the chosen legal ground and complements—not replaces—statutory notices, DOLE reporting, and payroll deliverables. Use it strategically, keep it factual, and back it with solid records.