Employee Resignation

The employee has the right to resign from his employment resulting in its
termination.[1] Resignation is the voluntary act of an employee who is in a position
where he believes that personal reasons cannot be sacrificed in favor of the
exigency of the service, and he has no other choice but to disassociate himself from
employment.[2]
Philippines Today, Inc. v. National Labor Relations Commission
G.R. No. 112965, 30 January 1997
Employment is essentially contractual in nature. Thus, it requires mutuality of
consent by and between the employer and the employee. If the employee finds-
himself in a situation where he believes that personal reasons cannot be sacrificed in
favor of the exigency of the service, then he has no other choice but to disassociate
himself from his employment. Once accepted, this results in the severance of the
contract of employment.
While the employee has the right to resign, labor law requires that a 30-day written
notice or a resignation letter be served to the employer at least one month in
advance.[3] If the employee fails to comply with the 30-day notice rule, he may be
held liable for damages suffered by the employer.[4]
However, the employee does not need to comply with the 30-day notice rule in the
following situations:

Serious insult by the employer or his representative on the honor and person
of the employee;[5]

Inhuman and unbearable treatment accorded the employee by the employer

or his representative;[6]

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;[7] and

Other causes analogous to any of the foregoing.[8]

The Labor Code does not require that the employer accept or approve the
resignation by the employee. The reason being is that the employee has the right to
resign. To be clear, once the employee tenders the 30-day written notice, it initiates
the resignation which becomes fully effective after the last day.
If the employer does accept or approve the resignation, it cannot be withdrawn
except with the consent of the employer. Conversely, the resignation may be
withdrawn by the employee prior to the employers acceptance or approval as the
same is not prohibited by law.[9]
In labor disputes involving illegal dismissal, the employer who invokes the defense
that the employee resigned is required to prove it.[10] It is important that the intent to
relinquish must concur with the overt act of relinquishment.[11] Otherwise stated, the
acts of the employee before and after the resignation will be considered in
determining whether there was indeed a resignation.[12]
Best Legal Practices:
Draft resignation letter It is often the case that the employee does not know how to
write a proper resignation letter. Consequently, it is prudent and wise for the
employer to have a draft simple and concise resignation letter that would serve as a
guide.
30-day notice extendible to a reasonable period In some businesses, the 30-day
notice might be short to give ample time for an orderly transition of work from a
leaving employee. Thus, it can be agreed upon by the employer and employee that
the notice be extended to a reasonable period which may be more than but not less
than 30 days (e.g. 60 days) through the employment contract or the CBA.
Execute a release, waiver, and quitclaim The employer should ensure that the
resigning employee execute a release, waiver, and quitclaim as proof of complete
and final settlement of all claims that he may have against the employer prior to
his/her last day of work or after the clearance process.
Initiate clearance process at least two weeks before last day For the smooth
transition of work and to properly address any outstanding liability, the clearance
process should be initiated at least two weeks before last day.
The fulfillment by the employee of a military or civic duty does not operate to
terminate his employment.[13] After his service, the employer is required to reinstate
the employee to his former position without loss of seniority rights if he indicates his
desire to resume his work not later than one month reckoned from his relief of the
military or civic duty.[14]

[1] LABOR CODE. Article 299.

[2] San Miguel Properties Philippines, Inc., v. Gwendellyn Rose S. Gucaban, G.R.
No. 153982, 18 July 2011, citing Nationwide Security and Allied Services, Inc. v.
Ronald P. Valderama, G.R. No. 186614, February 23, 2011; Alfaro v. Court of
Appeals, 416 Phil. 310, 320 (2001), citing Philippine Wireless, Inc. (Pocketbell) v.
NLRC, 310 SCRA 363 (1999), Valdez v. NLRC, 286 SCRA 87 (1998) and Habana v.
NLRC, 298 SCRA 537 (1998); Intertrod Maritime, Inc. v. NLRC, G.R. No. 81087,
June 19, 1991, 198 SCRA 318, 323. See also Batongbacal v. Associated Bank, 250
Phil. 602, 608 (1988).
[3] LABOR CODE. Article 299.
[4] Ibid.
[5] LABOR CODE. Article 299 (b) (1).
[6] Ibid. Article 299 (b) (1).
[7] Ibid. Article 299 (b) (2).
[8] Ibid. Article 299 (b) (3).
[9] Ibid.
[10] Id at 339.
[11] Ibid.
[12] Ibid.
[13] LABOR CODE. Article 300.
[14] Ibid.

Exceptions to 30-Day Resignation Notice

Resignation is the right of an employee to disassociate himself from employment.
At the Asian Institute Manage (AIM) labor law seminar last week, I received
interesting questions from one of the participants. She asked whether an employee
may be allowed a shorter 30-day service for her resignation, as well as whether it is
possible for an employee to not comply with the 30-day resignation notice rule.

I answered in the affirmative for both questions provided certain conditions are met.

Concept of Resignation
Resignation is the right of the employee to leave his/her employment due to personal
reasons. This right is provided for the in the Labor Code, viz:

Art. 285. Termination by employee.

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.

The written notice stated above is ordinarily referred to as theresignation notice.

General Rule: 30-Day Resignation Notice

The purpose of the 30-day resignation notice is to ensure a smooth turn-over and
transfer of the work currently being held by the resigning employee. To avoid
problems in the workplace, and to ensure continuous operations, labor law requires
the employee to stay for at least 30 days.

During the 30-day period, the employer is expected to find a suitable replacement of
the resigning employee or provide for ways so that other remaining employees may
assume the work to be left behind.

Shortening of 30-Day Service

The 30-day service is discretionary on the employer. As stated earlier, the 30-day is
designed in favor of the employer. That being the case, the employer may shorten
and even waive the 30-day service.

The rule of requiring an employee to stay or complete the 30-day period prior to
the effectivity of his resignation becomes discretionary on the part of management
as an employee who intends to resign may be allowed a shorter period before his
resignation becomes effective (PHIMCO Industries v. NLRC, Carpio, G.R. No.
118041, 11 June 1997)

To be clear, it is the employer who gets to decide on whether he is willing to waive or

shorten the 30-day service for any resigning employee.

Exceptions to 30-Day Resignation Notice

Notwithstanding, there are instances when an employee may no longer need to
tender a 30-day advance resignation notice. The Labor Code provides for exceptions
to the 30-day resignation notice in favor of the employee:

Art. 285. Termination by employee.

x x x

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

a. Serious insult by the employer or his representative on the honor and person of
the employee;

b. Inhuman and unbearable treatment accorded the employee by the employer or

his representative;

c. 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

d. Other causes analogous to any of the foregoing.

If any of the above conditions happen, the employee is no longer required to tender
a 30-day advance resignation notice and render such service. It should be pointed
out that the grounds are not limited to the above list as the last one provides for other
causes analogous to any of the foregoing. Meaning, similar situations may be a
ground for the application of the exception to the 30-day resignation notice rule.