Dear Attorney,

I would like to ask for legal advice regarding the policies and rights concerning immediate resignation in the Philippines, particularly with regard to the issuance of a Certificate of Employment (COE) and the processing of backpay. I am unsure whether an employee who resigns immediately is entitled to receive their COE and if there will be any delays or deductions from their backpay due to the abrupt nature of the resignation. Could you kindly clarify this matter?

Sincerely,
An Employee Seeking Clarification

Insights

In the Philippines, the Labor Code outlines specific rules governing resignations, including those made without proper notice, often referred to as "immediate resignation." Generally, an employee is required to give their employer at least 30 days' notice before leaving a job, unless there are justifiable reasons for immediate resignation such as:

Serious insult by the employer or their representative.
Inhuman or unbearable treatment.
Commission of a crime against the employee or their family.
Other similar causes which threaten the safety, honor, or life of the employee.

If an employee resigns without these valid grounds or without giving the required notice, this may be considered a violation of the employment contract or company policies. However, this does not automatically prevent the employee from receiving their Certificate of Employment (COE) or backpay.

Certificate of Employment (COE)

The issuance of a Certificate of Employment is a right of the employee under the Labor Code of the Philippines. The employer is obligated to provide this document regardless of the circumstances of the resignation. The COE merely reflects the employee's dates of employment and position held, and withholding it due to immediate resignation is not legally permissible.

Even if the resignation was abrupt, the employee is entitled to request and receive their COE within a reasonable time after leaving the company. Refusal to issue a COE can be subject to complaints filed with the Department of Labor and Employment (DOLE).

Backpay

Backpay generally includes unpaid salary, accrued leave credits, and any other benefits that may be owed to the employee at the time of resignation. In the case of immediate resignation, processing backpay may take longer, especially if there are outstanding financial obligations (e.g., cash advances or company loans) that the company will need to reconcile.

However, the employee's entitlement to backpay is not forfeited due to immediate resignation. Employers are expected to release backpay, though deductions may be made in accordance with company policies if the resignation violated the notice requirement.

If the resignation was based on justifiable grounds, the employee may claim their backpay without fear of deductions or delays. Should an employer refuse to release backpay without legitimate cause, the employee can seek legal recourse through DOLE.

Final Thought

In summary, immediate resignation may complicate the processing of backpay, but it does not negate an employee’s right to receive their COE or the funds owed to them. An employee who encounters difficulty in obtaining their COE or backpay should reach out to DOLE for assistance in protecting their rights.