Resignation in the Labor Code of the Philippines

Resignation is the act of severing the employment relationship initiated by the employee and recognized in the Labor Code of the Philippines.

Defining Resignation

What is Resignation?

Is Resignation included in the provisions of Presidential Decree No. 442 also known as the Labor Code of the Philippines? The term "Resignation" is present in the Labor Code of the Philippines in the form of "Termination by Employee".

(a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.

(b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:

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.

Article 300 [285] of the renumbered Labor Code of the Philippines regarding Termination by Employee

Process of Resignation

How do I resign from my employment?

Resignation is a straightforward process of communicating your intention to resign to your employer often through the Human Resource Department or Officer.

An employee who intends to resign should submit a written resignation letter and render the 30 day notice as mandated by the Labor Code of the Philippines.

Is a “Notice of Acceptance of Resignation” by an employer required?

The Labor Code of the Philippines does not mandate a "Notice of Acceptance of Resignation".

However, jurisprudence has provided that an Acceptance of Resignation is required as it produces the legal effect of severing the employment.

30 day Notice Period in Resignation

How long is the notice period of a resignation?

The Labor Code of the Philippines mandates a 30 day notice period to the employer.

Can the notice period be longer than what is mandated by law?

Yes, the notice period may be longer than 30 days.

The employer may explicitly indicate it in the employment contract and the period is reasonable due to the requirements of the position.

The employee may also provide, on his good will, an extended notice period.

Can an employee immediately resign without rendering the 30 day notice?

An employee may only immediately resign from their employment only for the just causes provided by Article 300 of the renumbered Labor Code. Article 300 [285] of the renumbered Labor Code of the Philippines provides the following just causes:

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.

Can an Employer refuse to accept my resignation?

No, an employer cannot refuse to accept the resignation of an employee. Art. 300 [285] does NOT explicitly provide that the acceptance of the resignation of the employee is at the discretion of the employer.

Can an employee immediately resign without the just causes enumerated in Article 300 [285] of the renumbered Labor Code of the Philippines?

An employee may submit a request to their employer that they wish to render less than the mandated 30 days notice. This is the only aspect which requires the notice of acceptance as it deviates from what the Labor Code of the Philippines mandates. This also gives assurance that the employee that he will NOT be held liable for an earlier termination of employment.

It is recommended that the employee secure a copy of the acceptance letter to avoid legal concerns.

What is the liability of an employee who refuses to render the 30 day notice?

An employee that does not render the 30 day notice may be held liable for damages. An employee who immediately leaves may be tagged as "Absent without Leave" (AWOL) and employment would be terminated.

Can I be forced to work by my employer?

No, involuntary servitude or being forced to work against your will is not allowed by law. According to Article III of the Bill of Rights of the 1987 Constitution:

No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted.

As stated in Section 3 (2) of Article III of the 1987 Constitution of the Philippines

Withdrawal of Resignation

Can an employee withdraw or rescind their resignation?

Yes, an employee may withdraw their resignation provided that the resignation letter has not been accepted. The unilateral withdrawal does not require the consent of the employer.

However, an accepted resignation may not be withdrawn without the consent of the employer. The employee no longer has any right to the position he resigned from as the resignation has already been accepted. It is dependent upon the employer if the employee would be allowed to continue working in the same position. (Intertrod Maritime v. NLRC, 1991)

Can the employer allow the employee to continue working if he withdraws his resignation even after there is an acceptance of resignation?

Yes, the employer has the prerogative to allow the employee to continue working even after the resignation has already been accepted.

Is there illegal dismissal if the employer refuses to allow the employee to continue working even if the employee withdraws the resignation that was already accepted?

No, the employee cannot claim illegal dismissal if the employer refused to allow the employee to continue working as there is already an acceptance of the resignation. (Intertrod Maritime v. NLRC, 1991)

Monetary Compensation upon Resignation

What will I get or receive if I voluntarily resign from my employment?

An employee who voluntary resigns from their employment is entitled only to their Final Pay and other monetary compensation as stated in the company policy or Collective Bargaining Agreement (CBA).

Am I entitled to Separation Pay if I resigned from work?

No, an employee who voluntarily resigned from their job is not entitled for Separation Pay. A severance package may be given by the employer based on their company policy or Collective Bargaining Agreement (CBA).

Am I entitled to Final Pay if I resigned from work?

Yes, an employee who has resigned from their work is entitled to Final Pay.

Template of a Resignation Letter

What are the contents or format of a Resignation Letter?

The Labor Code of the Philippines does not mandate any content of the resignation letter. Generally, a resignation letter should contain the following: 1.) Date of Resignation Letter; 2.) Name of the Recipient; 3.) General content or body of the letter; and 4.) Name of employee with their signature.

For the Date of the Letter, it should be the date of submission of the resignation letter. This indicates the start date of the rendering period for the 30 days notice.

For the Name of the Recipient, it should be addressed to the owner or head of the company. It may also be your manager or the HR.

For the General content or body of the letter, it should indicate the intention to resign or severe the employment relationship, your reason for your resignation (which is not required); and your last date of employment.

For the Name of employee with their signature, this should be your Name over your signature

Frequently Asked Questions

Should I resign when I am on Floating Status?

An employee is allowed to resign from their employment when on floating status. However, resigning from your employment is entirely based on your situation and plans.

Employees who voluntarily resigns are not entitled to Separation Pay as only those whose employment has been terminated due to Authorized Causes are entitled to it. If you foresee that you would be retrenched, it is advisable to wait for the "Notice of Retrenchment" as you would be entitled to Separation Pay.

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