Are you entitled to receive any benefits as a regular employee if you resign voluntarily?
In the Philippines, when an employee voluntarily resigns, they are still entitled to certain benefits, although not all of the benefits available to an employee who is terminated or laid off are applicable. Below is an overview of the benefits you can expect to receive if you resign voluntarily:
1. Final Pay
Upon resignation, an employee is entitled to their final pay, which includes unpaid wages, pro-rated 13th-month pay, unused service incentive leave, and any other amounts due under company policies or employment contracts. Final pay should be provided within 30 days from the date of resignation unless a different period is agreed upon.
2. 13th Month Pay
Even if you resign, you are still entitled to a pro-rated 13th-month pay. This is calculated based on the number of months you have worked within the calendar year before your resignation.
3. Unused Service Incentive Leave
Employees who resign are entitled to the cash equivalent of their unused service incentive leave. Under the Labor Code, a regular employee is entitled to at least five days of service incentive leave annually, which, if unused, should be converted to cash upon resignation.
4. Retirement Benefits
Under the law, retirement benefits are typically granted to employees who meet the age and length of service requirements as defined by the company or industry standards. However, if an employee voluntarily resigns before meeting these criteria, they may not be entitled to receive retirement benefits unless otherwise stated in the company’s retirement plan.
5. Separation Pay
Separation pay is generally not granted to employees who voluntarily resign unless it is provided for in the employment contract, company policy, or a collective bargaining agreement. Separation pay is usually reserved for cases of termination due to authorized causes such as redundancy, retrenchment, or health reasons.
6. Government-Mandated Benefits
Government-mandated benefits such as those provided by the Social Security System (SSS), PhilHealth, and the Pag-IBIG Fund remain accessible even after resignation. Contributions to these agencies are mandatory while employed, and employees can continue their contributions voluntarily after resignation to keep their benefits active.
7. Clearance Process
To ensure the release of these benefits, an employee typically needs to undergo a clearance process. This involves returning company property, settling any liabilities, and obtaining a clearance certificate from the employer.
Conclusion
While voluntarily resigning from a job in the Philippines does not entitle you to all the benefits that might be available if you were terminated, you are still entitled to certain key benefits such as your final pay, pro-rated 13th-month pay, and compensation for any unused service incentive leave. Understanding these entitlements ensures that you receive what is due to you upon leaving your job.