Dear Attorney,

I am currently employed and have signed a contract with my employer. However, due to unforeseen circumstances, I need to resign immediately. I am aware that my contract may contain terms regarding resignation and notice periods. My question is: Am I legally allowed to submit an immediate resignation even if I have already signed a contract that may specify otherwise?

Sincerely,
A Concerned Employee

Insights:

In the Philippines, the Labor Code governs the employment relationship between employers and employees. According to Article 300 (previously Article 285) of the Labor Code, an employee may terminate their employment without just cause by serving a written notice to the employer at least one month in advance. This means that, generally, if your contract stipulates a notice period, you are expected to comply with that.

However, there are exceptions to this rule. You can resign immediately without the need to serve the notice period if there is a just cause. The Labor Code enumerates certain instances where immediate resignation is allowed:

Serious insult by the employer or their representative on the honor and person of the employee.
Inhuman and unbearable treatment accorded the employee by the employer or their representative.
Commission of a crime or offense by the employer or their representative against the person of the employee or any of the immediate members of the employee’s family.
Other causes analogous to the foregoing.

If any of these conditions apply, you may resign immediately without the obligation to fulfill the notice period stipulated in your contract. However, if none of these just causes are present, resigning immediately could potentially lead to legal consequences, such as a claim for damages by your employer for breach of contract.

It is also important to review the specific terms of your contract, as some contracts may include provisions for liquidated damages in case of immediate resignation without just cause. Liquidated damages are a predetermined amount that an employee might be required to pay if they do not comply with the notice period.

Before taking any action, it is advisable to seek personalized legal advice based on the specific details of your situation. A lawyer can help you review your contract and provide guidance on the best course of action given your circumstances.