Dear Attorney,
I would like to ask about the validity of an employee's clearance after resignation. If an employee who has rendered only 6.5 months of service files an immediate resignation and processes their clearance after more than a month, can the employer disapprove the clearance due to the delay? Is there a specific rule regarding the timeframe for processing such clearance in the Philippines?
Sincerely,
Concerned Employee
Insights:
In the Philippines, resignation is the voluntary act of an employee to terminate their employment relationship. Under Philippine labor laws, employers typically require resigning employees to complete a clearance process, ensuring they have returned company property and settled any obligations. While the Labor Code of the Philippines does not explicitly provide a specific rule on the validity of a clearance period post-resignation, company policies generally govern this.
Clearance Process After Resignation
Clearance is a formality allowing employers to check if the employee has fulfilled their obligations. Employers often require it before issuing a Certificate of Employment or releasing final pay, including back wages, accumulated leave, and 13th-month pay. The timeframe for clearance processing is generally dictated by company policies. However, it is common practice for employees to process their clearance within a reasonable period, typically ranging from two weeks to one month after resignation.
Employer's Right to Disapprove Clearance
If an employee delays processing their clearance, an employer may have grounds to disapprove or delay the release of documents such as the Certificate of Employment or final pay. However, the reason for the disapproval must be reasonable and related to the employee’s obligations (e.g., unreturned company property or unsettled debts). Employers cannot withhold clearances arbitrarily. Under Department of Labor and Employment (DOLE) guidelines, employers must act in good faith when processing employee clearances.
Employee Rights
Employees, on the other hand, have the right to receive their final pay and necessary employment documents within a reasonable period. If the employer unreasonably withholds clearance or final pay, the employee can file a complaint with DOLE. Under Article 116 of the Labor Code, employers cannot withhold wages except under lawful conditions (e.g., unsettled obligations).
In the absence of a clear company policy on the timeframe for clearance, the key issue would revolve around reasonableness, both on the part of the employer and the employee.