Dear Attorney,

I would like to ask what legal remedies are available for an employee who admitted to wrongdoing and already submitted a resignation letter. Aside from dismissal or termination, are there other legal actions or options available to the employer in this case?

Concerned Employer

Insights

In the Philippines, resignation is the voluntary act of an employee who desires to terminate his or her employment with the company. It is an inherent right of any employee to resign, provided that the appropriate notice period is observed in compliance with Article 300 (formerly Article 285) of the Labor Code of the Philippines. However, when resignation occurs after an admission of misconduct or wrongdoing, employers may face legal questions regarding their rights and obligations. This article explores the concepts surrounding resignation, termination, dismissal, and employer remedies under Philippine labor laws.

1. Resignation vs. Termination for Cause

Resignation is distinct from termination for cause. In a voluntary resignation, the employee leaves at their own discretion, often providing a 30-day notice, unless waived by the employer. Termination, on the other hand, occurs at the discretion of the employer due to just or authorized causes under the law.

If an employee admits to wrongdoing and submits a resignation letter, the employer may still have the option to reject or accept it. Employers may choose to initiate dismissal proceedings if there is just cause, even after the resignation is submitted.

Key Difference:

Resignation is initiated by the employee.
Termination for cause is initiated by the employer and may lead to penalties such as forfeiture of separation benefits, depending on the severity of the misconduct.

2. Grounds for Termination Despite Resignation

While an employee may resign after admitting to misconduct, the employer can still proceed with disciplinary action or termination for just cause. According to the Labor Code, just causes for termination include:

Serious misconduct
Willful disobedience
Gross and habitual neglect of duties
Fraud or willful breach of trust

In such cases, the employer can initiate proper proceedings to terminate the employee despite the resignation. This ensures that the employee's wrongdoing is properly addressed, which can also prevent the employee from using resignation to avoid the consequences of their actions.

3. Resignation with Pending Disciplinary Proceedings

If an employee resigns while disciplinary proceedings are ongoing, the resignation does not necessarily halt the proceedings. The employer retains the right to conclude the investigation, establish liability, and impose sanctions even if the employee has already resigned. This is important for maintaining accountability and protecting the company from future liabilities.

For example:

If the employee's misconduct resulted in damage to the company's property or reputation, the employer might still pursue legal actions, such as filing civil or criminal charges, to recover losses or enforce legal consequences.

4. Waiver of Notice Period

Under the Labor Code, an employee who resigns is required to give a 30-day notice unless waived by the employer. However, if the employee is involved in serious misconduct or has admitted to wrongdoing, the employer can choose to waive the notice period and release the employee immediately. Waiving the notice period may prevent further harm to the company and allows the employer to swiftly address any lingering issues.

5. Possible Legal Actions Against Resigned Employees

Once an employee resigns, the employer’s right to pursue legal remedies may still exist, especially in cases of serious misconduct. Employers can pursue the following:

Civil Action: If the employee’s actions caused financial loss or damage, the employer may file a civil lawsuit to recover damages.
Criminal Action: For offenses such as fraud, theft, or embezzlement, the employer can initiate criminal proceedings. Resignation does not absolve the employee of any criminal liability.
Filing a Complaint for Breach of Confidentiality or Non-Compete Agreements: If the employee’s conduct involves breaching a confidentiality agreement or a non-compete clause, the employer may file a separate legal action based on contract violation.

6. Separation Pay and Benefits

An employee who resigns voluntarily, even after admitting to wrongdoing, is generally not entitled to separation pay unless stipulated in the company’s policies or a collective bargaining agreement. Termination due to just cause disqualifies the employee from receiving separation pay.

However, if the resignation is not for cause and the employer accepts it without further action, the employee may still be entitled to any accrued benefits, such as unpaid salary, pro-rated 13th-month pay, or other benefits required by law or company policy.

7. Final Pay and Clearances

Upon resignation, the employer must settle the employee’s final pay, which includes any earned wages, unpaid leave credits, and pro-rated 13th-month pay. If the employee is involved in misconduct, the employer can withhold the final pay pending the resolution of the issue. However, employers must ensure that they do not violate labor regulations regarding withholding wages without just cause.

The employer can also delay the release of clearances if there are unresolved legal issues or ongoing investigations.

8. Conclusion

In summary, even when an employee submits a resignation after admitting to misconduct, the employer has several options. These include rejecting the resignation, proceeding with termination for cause, pursuing legal remedies, or waiving the notice period. Resignation does not automatically absolve the employee from the consequences of their actions, and the employer retains the right to pursue civil, criminal, or administrative actions if warranted. Additionally, the employer must ensure compliance with legal requirements regarding the employee's final pay and other obligations.

In handling such situations, it is crucial for employers to consult legal counsel to ensure that they follow proper legal procedures and protect their interests under Philippine labor laws.