Dear Attorney,

I am currently employed and am planning to resign soon. I would like to ask if I am entitled to receive any financial benefits upon resignation. Could you please clarify what I may be able to claim when I leave my current job?

Sincerely,
A Concerned Employee

Insights

When an employee voluntarily resigns in the Philippines, the benefits they may receive will depend on the specific circumstances of their employment and compliance with labor laws. Generally, an employee resigning from their position is entitled to receive only certain benefits, unless there are contractual provisions or company policies that provide for additional entitlements.

Pro-Rated 13th Month Pay:
The 13th month pay is a mandatory benefit under Presidential Decree No. 851, and an employee who resigns before the year ends is still entitled to a pro-rated portion of this pay. The calculation is based on the number of months the employee has worked during the calendar year. If, for example, you worked for six months before resigning, you would be entitled to half of the 13th month pay.
Unpaid Salaries and Other Compensation:
Any unpaid salary or wages for work already rendered must be paid to the employee, including overtime pay, night shift differentials, and holiday pay, if applicable. Additionally, if the employee has accrued leave credits (such as vacation leaves), they may be entitled to a payout of those unused leaves, depending on company policy.
Separation Pay:
Generally, employees who voluntarily resign are not entitled to separation pay unless there is an existing company policy or employment contract that explicitly provides for it. However, separation pay is typically provided only when termination occurs due to authorized causes, such as redundancy, retrenchment, or closure of the company.
Clearance and Release:
Before receiving the final pay, most companies will require the employee to complete a clearance process to ensure that there are no outstanding obligations, such as loans or unreturned company property. It’s essential to complete this process to avoid delays in the release of the final pay.

It is important to refer to your employment contract and the company's employee handbook to determine if there are specific provisions regarding benefits upon resignation. Additionally, if the company has policies more favorable than the legal minimum, such as additional bonuses or special pay, you may be entitled to those as well.

For further clarification on your rights and entitlements, you may consider seeking legal counsel or consulting the Department of Labor and Employment (DOLE) to ensure that your employer adheres to the labor laws applicable to your situation.