Dear Attorney,

I am currently working without an employment contract. Am I allowed to resign immediately, or are there legal implications I need to consider? What are my rights as an employee, and what steps should I take if I wish to leave my job?

Sincerely,
An Employee Without a Contract

Insights

In the Philippines, an employment contract is a vital legal document that outlines the relationship between an employer and employee, including duties, responsibilities, and terms of employment. However, even in the absence of a written employment contract, the provisions of the Labor Code of the Philippines apply, protecting employees' rights and setting guidelines for employment practices.

Resignation Without a Contract

Under Philippine labor law, an employee, even without an employment contract, must provide notice when resigning from a job. Article 300 of the Labor Code (formerly Article 285) states that an employee who wants to terminate their employment must give their employer a written notice of resignation at least 30 days before the intended date of resignation. This requirement applies regardless of whether a formal employment contract exists.

There are, however, exceptions to this rule. Immediate resignation without prior notice is permissible under the following circumstances:

Serious insult by the employer or a representative of the employer on the honor or person of the employee.
Inhumane and unbearable treatment by the employer.
Commission of a crime or offense against the employee by the employer or any immediate member of the employer’s family.
Other causes analogous to the above.

These exceptions are considered valid grounds for immediate resignation and relieve the employee from the 30-day notice requirement.

Consequences of Immediate Resignation

If an employee resigns immediately without a valid reason, the employer may claim damages for breach of the obligation to provide proper notice. This is particularly important if the sudden resignation causes harm to the employer’s business operations. Employers may deduct costs associated with such damages from any outstanding wages or benefits due to the employee.

Final Pay and Benefits

Upon resignation, whether immediate or after serving the notice period, the employee is entitled to receive their final pay. This includes any unpaid wages, pro-rated 13th-month pay, unused service incentive leave, and other benefits due under law or company policy. The Department of Labor and Employment (DOLE) advises employers to release the final pay within 30 days after the last day of employment.

What to Consider Before Resigning

If you are contemplating resigning from your job, it is essential to follow the proper procedures under the Labor Code, even if no formal contract exists. Doing so will help protect your rights and prevent any legal issues from arising with your employer. If you believe you have grounds for immediate resignation, it is recommended to consult with a lawyer to ensure that your situation qualifies under the allowable grounds for immediate resignation.

Lastly, if an employer disputes your resignation or withholds your final pay, you can file a complaint with DOLE, which provides free assistance in resolving employment-related disputes.