Concern (translated to English):
Good morning, Attorney. I just want to ask: I’ve been working for one company for eight years, but I don’t have a contract. I’ve even been promoted, yet still without a contract. Now, I’m planning to resign. Will I be entitled to receive benefits for my length of service? Thank you.

∇ Legal Contemplator

Let me begin with the foundational concepts at play here. In the Philippines, the labor laws governing employment relationships—whether written or unwritten—are primarily encapsulated in the Labor Code of the Philippines. The question hinges on several key factors: the concept of an employment contract, its absence, the implications for tenure and benefits, and whether the employee’s resignation affects entitlements related to the length of service.

Initial Observations

Absence of a Written Contract
- First, an absence of a written contract does not automatically mean there is no employment relationship. The existence of employer-employee relationships in the Philippines is determined by the so-called "four-fold test":
  - The selection and engagement of the employee.
  - The payment of wages.
  - The employer’s power to dismiss.
  - The employer’s power to control the employee's conduct.
- Since the individual has been working for the company for eight years and was even promoted, the above indicators strongly suggest an employer-employee relationship exists.
Length of Service
- Eight years is a significant length of service. However, entitlement to benefits often hinges on the nature of the separation: whether the resignation is voluntary or involuntary.
Resignation and Benefits
- When an employee resigns, the general rule is that certain benefits tied to tenure—such as separation pay—are not granted unless the resignation is considered involuntary or falls under an exception (e.g., resignation due to redundancy or labor law violations).

Exploring Core Questions

Does the absence of a contract affect the employee's rights?

On the face of it, the absence of a written contract does not extinguish the worker’s rights under labor law. In fact, Philippine labor laws lean heavily in favor of workers, ensuring their protection even in informal arrangements. For instance:

Article 1700 of the Civil Code declares labor contracts imbued with public interest, heavily favoring workers’ rights.
The absence of a written contract cannot be used to deny basic entitlements like final pay, unused leave, or retirement benefits (if applicable).

At this point, the absence of a contract raises another doubt: could the lack of documentation complicate the calculation of benefits? In principle, documentation is unnecessary if other records (payroll, time logs, etc.) can substantiate the claim.

Will resignation preclude entitlement to benefits related to length of service?

Here, we must ask if the resignation is voluntary or influenced by unfair labor practices:

Voluntary Resignation
- If purely voluntary, the law typically limits entitlements to final pay, unused leaves, and accrued benefits—unless the company has policies granting separation pay for voluntary resignation.
- The Labor Code generally reserves separation pay for involuntary separations.
Involuntary Resignation or Constructive Dismissal
- If resignation results from circumstances amounting to constructive dismissal (e.g., lack of promotion documentation, exploitative conditions), then the employee may claim separation pay and other remedies. Constructive dismissal occurs when work conditions become so intolerable that the employee is effectively forced to resign.

A gray area emerges here: the absence of contracts across eight years suggests potential lapses in labor compliance. Could this constitute grounds for constructive dismissal? Or does the employee have no such claim because they continued working without protest?

Are there benefits tied directly to the eight-year service?

Next, we consider benefits based solely on the employee’s tenure:

Retirement Pay: Under Republic Act No. 7641, employees who reach 60 years of age and have served at least five years are entitled to retirement benefits. However, resignation alone does not automatically trigger retirement benefits unless the employer has a voluntary retirement policy.
13th Month Pay: Pro-rated 13th month pay must be included in the final pay, but it does not directly tie to length of service.
Unused Leave Conversions: While not strictly tied to tenure, accrued unused leave conversions (if any) may apply.

The notion of length-of-service compensation remains heavily tied to specific separation scenarios like retirement, retrenchment, or redundancy.

Doubts and Dead Ends

The Company’s Policies
- Does the company offer benefits for long-tenured employees who voluntarily resign? Some employers adopt policies granting gratuity pay or service awards, which are not legally required but arise from company discretion.
- Without knowing this company’s policies, assumptions about length-of-service payments remain speculative.
Unclear Grounds for Resignation
- The employee did not mention whether resignation is influenced by dissatisfaction or mistreatment. If so, constructive dismissal might apply. However, absent more context, we cannot jump to that conclusion.
Ambiguity in Documentation
- Will the company dispute the eight-year tenure due to the lack of a written contract? Payroll records likely corroborate employment, but there’s no guarantee the employer will not challenge details.

Revisiting the Core Principles

Let’s take stock of where we stand:

The Employee’s Rights are Preserved
- Written contracts are unnecessary to establish employment.
- Resignation entitles the employee to basic separation entitlements: final pay, unused leave conversion, and pro-rated 13th month pay.
Separation Pay is Conditional
- Separation pay typically applies only in cases of involuntary separation. Voluntary resignation usually precludes it, unless the employer has a discretionary policy to provide gratuity pay.

Final Thoughts

Given these considerations, the employee should:

Clarify the company’s policies on length-of-service benefits for resigning employees.
Gather employment records (e.g., payslips, promotion letters, work evaluations) to establish tenure.
If dissatisfaction or exploitation influenced the resignation, explore constructive dismissal claims.

Final Answer:
Even without a written contract, you have an employer-employee relationship under Philippine labor laws. Upon resignation, you are entitled to receive:

Your final pay (including pro-rated 13th month pay).
Payment for any unused leaves (if company policy permits).

However, separation pay tied to your eight years of service generally applies only to involuntary separations unless your employer has a policy granting it for voluntary resignations. It is advisable to check your company’s policies and gather all employment records to ensure you claim any benefits due.