FAQ: Resignation

Answers to frequently asked questions on resignation in the Philippines.

1. In General

What is resignation?

Resignation – refers to employees voluntarily and willfully exiting from employment after finding themselves in a situation that they have to severe their employment as personal reasons outweighs the demands of the work that they were doing.

Legal definition: Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice but to dissociate oneself from employment. (Pascua v. Bank Wise Inc., G.R. No. 191460, 31 January 2018)

How is resignation properly done?

To properly resign:

1) The employees must tender or submit a written resignation letter/notice to the employer at least thirty (30) days prior to the intended last day of work.

• The thirty (30) days is the default advance notice period stated in the Labor Code.

• For technical or hard-to-find-roles, as well as senior management positions, the employer and the employees may have stipulated in the employment contract a longer notice and render period (e.g. 40 days, 60 days, etc.). If this is the case, then such a stipulation will govern following the principles on contract stipulation, particularly the principle on autonomy. (Caveat: Stipulating a longer notice period is not always valid. There are requirements that have to be met in order for such to be valid.)

2) The employees must render work during the last days of work to properly turn-over work and company properties in their possession.

• The employer has the right to shorten the render period or waive it entirely (a.k.a. acceptance of resignation on the spot). For instance, if the resignation letter/notice stated that the employees would be working for the remaining 30 days, the employer may choose that they work for only 15 days or that they do not need to render anymore. Labor jurisprudence has repeatedly emphasized that the render period is in favor of the employer to ensure proper turn-over of work and company properties so that business operations would not be affected by the exit of the employees. Accordingly, the employer may shorten the render period if it sees fit that a short period of time is only needed or that render is not necessary.

• If the render period has been shortened or waived, the employees will be entitled to pay until the day they last actually worked. Thus, they will not be entitled to pay for the rendering period which has been waived. This is due to the principle of no work, no pay.

3) The employees will undergo reasonable clearance process and submit necessary exit documents on/before the last day.

• The employer has the right to implement reasonable clearance procedures and exit documents which employees should follow to ensure proper accountability and turnover of work and company properties. This follows the principle of management prerogative.

4) Where possible, the employees will then collect their last pay on/before the last day of work.

• Last pay should ideally be paid to the employees on/before the last day of work. However, there are cases that this may not be possible such as the employee’s failure to properly undergo reasonable clearance process and submit necessary exit documents, as well as not settling accountabilities and not turning over company properties. Labor jurisprudence has recognized the employer’s right to withhold the last pay of employees who have not complied with the clearance process.

What happens if employees fail or refuse to properly resign and/or render during the notice period?

Employees who fail and/or refuse to properly resign and/or render during the notice period may be held liable for damages that the employer may experience as a result thereof. For example, if the abrupt resignation of the employees result in the employer being in a breach of contract with a client, the employer may seek and enforce damages against the responsible employees.

Resignation letter

Is a written resignation letter/notice required?

Yes, the Labor Code requires that employees submit a written resignation letter/notice to their employers.

However, there are exceptions or situations when submission of a written resignation letter/notice is not necessary. See below.

Are there exceptions to submitting a written resignation letter/notice?

Yes, the Labor Code allows employees to terminate their employment relationship without submitting a written resignation letter/notice if any of the following just causes apply:

1) Serious insult by the employer or his representative on the honor and person of the employee;

2) Inhuman and unbearable treatment accorded the employee by the employer or his representative;

3) Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and,

4) Other causes analogous to any of the foregoing.

See: Article 300 [b], Labor Code

What should be in the resignation letter/notice?

There are no specific contents on the resignation prescribed by Labor Law. What is important is that the employees inform their employer of their exit from the company and their intended last day.

For templates/samples, see: Downloads

When should the resignation letter/notice be submitted?

The resignation letter/notice should be submitted at least thirty (30) days in advance or prior to the last day of work following the render period.

If there is a stipulated longer render period and it follows the requirements for validity, it should be followed.

May employees request a receiving copy after submitting a resignation letter/notice?

Yes, employees may request from the employer a receiving copy after submitting a resignation letter/notice.

How else may the employees prove that they have tendered an advanced resignation letter/notice?

Employees may prove that they have tendered an advanced resignation letter/notice:

1) By sending another copy by email, with a photo/scanned copy of the resignation letter as an attachment;

2) By requesting a co-employee to witness the tendering or submission of the resignation letter/notice and asking a written statement thereafter;

3) By sending via private courier the resignation letter/notice to the Company’s address and keeping the receipt as proof;

4) By sending via Philippine Post Registered Mail with Return Card the resignation letter/notice to the Company’s address and keeping the receipt and return card as proof; and

5) By executing and notarizing an affidavit attesting to the fact of tendering or submitting a resignation letter/notice.

NB: Proof of tendering an advance written resignation letter/notice is important for purposes of defense in case the employees are sued later on by their employer for damages.

May a notarized resignation letter be required from employees?

Yes, employees may be required to submit a notarized resignation letter if there is such a stipulation on the employment contract. This follows the principle on contracts, particularly on the principle of autonomy.

Withdrawing resignation

May employees withdraw their resignation after submitting a resignation letter/notice?

Yes, employees may withdraw their resignation after submitting a resignation letter/notice so long as the employer has not yet accepted. If the employer has accepted the resignation, it becomes automatically binding and produces legal effect. In such a case, the resignation becomes final.

Render during notice period

May employees refuse to work during the render period?

No, employees may not refuse to work during the render period. If they do, they may be held liable for damages by their employer. The purpose of rendering is to ensure that the employer’s business operations would not be seriously affected or impacted whenever employees resign. Thus, resigning employees are required to work during the render period to ensure proper and smooth transition of work, as well as turnover of any accountabilities and company properties.

May employees insist on using their remaining leave credits to be applied during the render period?

By default, the employees may not insist on using their remaining leave credits to be applied during the notice period. As with any use of leave credits, these are subject to approval by the employer in line with management prerogative. Further, given that the notice period is crucial for the proper transition of work and turnover of responsibilities, employees should work towards ensuring that such be done and not avoid doing so by insisting on applying their leave credits.

However, if there is a favorable employee stipulation in the employment contract, company policy, collective bargaining agreement or other employment agreement granting the employee the right to use leave credits during the notice period, then employees may invoke it as a matter of contractual right. Be that as it may, it is nonetheless best to work a suitable arrangement with the employer to avoid any issues or concerns later on.

May the 30-day render period be extended or made longer?

The 30-day render period may be extended or made longer in these circumstances:

1) It is so stipulated in the employment contract and the requirements for longer or extended render period are applicable (merely stipulating to it is not sufficient); or

2) After tendering the resignation letter, the employer and the employees agree to a longer or extending the 30-day period (a.k.a. hold-over) and this should preferably be in writing to avoid issues later on.

Acceptance

May an employer accept a resignation letter/notice on the spot and waive the notice/render period?

Yes, an employer may accept a resignation letter/notice on the spot and waive the notice/render period. Labor jurisprudence has affirmed that the notice/render period is for the benefit of the employer. Thus, if the employer deems that it is no longer beneficial for the employee to continue working, then the resignation may be accepted on the spot, effectively terminating the employment and making it the last day of the employees.

May an employer shorten the notice or render period?

Yes, the employer may shorten the notice or render period. As discussed above, the notice or render period is designed for the benefit of the employer. If the employer only needs the employees to render for a few days or weeks instead of the entire duration period, then the employer has the management prerogative to decide on it.

Are the employees entitled to pay for the notice or render period if the employer shortened or waived them?

No, employees are not entitled to pay for the notice or render period if the employer has shorted or waived them. This is due to the principle of no work no pay. Thus, employees should  carefully consider this possibility and plan accordingly.

May an employer refuse to accept a resignation notice?

If they are so inclined, employers may refuse to accept a resignation letter/notice. However, it does not produce any legal effect or have no impact if all of the conditions for resignation have been complied with by the employees.

To be clear, if the employees have tendered/submitted a 30-day advance written resignation letter/notice and the employer refuses to accept it, the 30 days will continue to run or countdown. If the employees rendered work during the 30-day render period, then they have properly resigned despite the employer’s previous refusal to accept the resignation letter/notice.

Why does refusal of acceptance of the resignation by the employer have no effect?

The refusal of acceptance of the resignation by the employer has no legal effect because of the law against involuntary servitude under the Civil Code. If persons no longer wish to continue work and so long as the requirements for resignation have been met, then no amount of refusal by the employer will have any impact or legal effect.

Is acceptance by the employer necessary?

For the same reasons earlier on involuntary servitude, acceptance by the employer is not necessary.

However, see the cases of Shie Jie Corporation v. NLRC (G.R. No. 153148, July 15, 2005), citing Reyes v. CA, G.R. No. 154448, August 15, 20023, in turn citing Indophil Acrylic MFG Corporation v NLRC, G.R. No. 96488, September 27, 1997) – which has, by way of obiter dictum, stated that employer’s acceptance is required.

For more information, see: Resignation – Labor Law PH

What happens if the employer does not take any action after a resignation letter/notice has been submitted?

If the employer does not take any action after a resignation letter/notice has been submitted, then the countdown for the render period commences and will continue until the last day of work.

Forced resignation

Is a resignation letter/notice per se sufficient as a defense by the employer against a case for illegal or constructive dismissal (a.k.a. forced resignation)?

No, a resignation letter/notice per se is not sufficient as a defense by the employer against a case for illegal or constructive dismissal (a.k.a. forced resignation). Labor jurisprudence has repeatedly emphasized that the employer has the burden of proof to show additional pieces of evidence confirming and verifying that the employees did in fact willfully and voluntarily tendered or submitted resignation letters, and that these were not coerced from them.

In a case involving forced resignation, employees are coerced or constrained to submit a resignation letter or notice. Thus, this piece of evidence is often relied upon by scrupulous employers. For this reason, a resignation letter/notice is not sufficient by itself to defend the employer against a case on forced resignation.

May an employer offer a graceful exit to employees by way of resignation?

Yes, an employer may offer a graceful exit to employees by way of resignation. Labor jurisprudence has affirmed this as a viable option that the employer can extend to employees, particularly those who have committed serious violations. Rather than go through due process disciplinary action which may result in the finding of liability and imposition of penalties, including dismissal, a graceful exit affords the employee to save face and receive benefits on the way out. Otherwise, if they are dismissed from employment for just causes, they may lose benefits due to them and find it difficult to look for next gainful employment.

References

• Resignation – Labor Law PH

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/Updated: August 17, 2023