Dear Attorney,
I would like to ask about the validity of a resignation clearance after an employee has resigned. If an employee resigns after six and a half months of service and processes the clearance more than a month after their resignation, can the employer legally refuse to approve the clearance?
Thank you,
Concerned Employee
Insights
In the Philippines, when an employee resigns, there are certain processes that need to be followed, one of which is the clearance procedure. This clearance typically involves the return of company property, settlement of financial obligations, and ensuring that all responsibilities have been properly handed over.
The concept of "clearance" is not explicitly defined in the Labor Code of the Philippines. However, companies usually adopt their internal policies regarding the timeline and process for obtaining clearance after an employee resigns. These policies are often outlined in the company’s employee handbook or employment contract.
Validity of Resignation Clearance Timeline
Employers in the Philippines generally have the right to set their own rules regarding the deadline for securing clearance, such as a one-month period after resignation. However, these rules should be reasonable and aligned with the principles of fairness and good faith in employment relationships. Failure to process a clearance within the specified time may result in delays in the release of final pay or other employment certificates, such as the Certificate of Employment (COE).
Immediate Resignation and Clearance
When an employee resigns immediately or without the proper notice period as required by the employer (typically 30 days), this may complicate the clearance process. Immediate resignation can sometimes be justified by circumstances beyond the employee's control, but the employer may impose sanctions such as delaying the issuance of clearance or final pay if there are unresolved accountabilities or improper turnover.
However, employers cannot unreasonably withhold clearance if the employee has met their obligations or if delays in processing were not the fault of the employee. Should the employer refuse to release clearance without valid grounds, the employee may seek recourse by filing a complaint with the Department of Labor and Employment (DOLE) for unfair labor practices.
Takeaway
It is crucial for employees to understand their employer’s policies on clearance processing and to comply with the deadlines set by the company. Employers, on the other hand, must ensure that such policies are not applied arbitrarily and do not violate labor laws or the principles of fairness.