LETTER FROM THE CONCERNED WORKER:

Dear Attorney,

I hope this message finds you well. I am writing to seek guidance regarding my employment status. I currently work for a POGO company that has announced it will cease operations on December 23, 2024. I am uncertain whether it is permissible or advisable to begin searching for a new position with another employer before the official closure date. I value your legal expertise and would appreciate your counsel on this matter. Specifically, I want to know about any restrictions, notice periods, or other legal implications I should consider before accepting a new job offer.

Thank you in advance for your time and advice.

Sincerely,
A Concerned Employee

LEGAL ARTICLE ON THE RIGHT TO SEEK NEW EMPLOYMENT IN LIGHT OF AN IMPENDING POGO CLOSURE: A COMPREHENSIVE PHILIPPINE LAW PERSPECTIVE

Introduction
The Philippine Offshore Gaming Operator (POGO) industry has undergone significant developments in recent years. Companies operating under a POGO license offer online gaming services primarily to foreign markets but maintain physical offices in the Philippines to comply with local regulations. Amid shifting regulatory policies, concerns about tax compliance, labor rules, and national security, some POGO companies have opted to cease operations. When an employer announces closure on a specific date—such as December 23, 2024—employees often wonder whether they can commence job searches immediately or if certain legal constraints apply. This article comprehensively examines the Philippine legal framework governing an employee’s right to seek new work when a POGO company has announced a future shutdown.
Overview of POGO Regulations
Before delving into the employment aspects, it helps to understand the broader context of POGO regulations. The Philippine Amusement and Gaming Corporation (PAGCOR) is the principal regulatory body for gaming operations, including POGO licensing. PAGCOR and related government agencies, such as the Bureau of Internal Revenue (BIR) and the Department of Labor and Employment (DOLE), impose stringent requirements on POGO companies, ranging from tax and licensing obligations to labor law compliance. While these regulations primarily affect the employer’s right to legally operate, employees must also be aware of the potential ramifications of a closure—particularly if the closure is mandated by law, triggered by the revocation of a license, or voluntarily initiated by the company.
Employment Status and Contractual Rights
The cornerstone of an employee’s protection lies in the Labor Code of the Philippines (Presidential Decree No. 442), which governs the rights of workers, including grounds for termination, separation pay entitlement, and the obligations of employers during closures or cessations of business operations. Many POGO employees operate under either fixed-term or regular employment contracts. Depending on one’s contract, the announcement of closure on a specific date might trigger certain entitlements or restrictions. Generally, however, employees retain the right to seek gainful employment elsewhere unless specifically constrained by valid contractual provisions such as restrictive covenants (e.g., non-competition clauses or confidentiality agreements), or by legal reasons recognized under Philippine law. Nonetheless, these restrictive covenants are subject to reasonableness tests, especially in light of constitutional protections that guarantee the freedom to work.
Right to Resign and Constitutional Basis
Under Philippine law, employees generally have a right to resign from their positions—subject to the lawful requirement of a 30-day notice, unless a shorter or longer period is stipulated by contract or allowed under exceptional circumstances. Article 285 of the Labor Code provides guidance on an employee’s prerogative to terminate the employment relationship with or without a just cause, though the corresponding notice periods differ. Moreover, the Philippine Constitution protects the right of every individual to engage in lawful work. This principle underscores that any restriction on one’s ability to seek employment must not be excessively burdensome or contrary to public policy. Consequently, if a POGO company announces its closure effective December 23, 2024, an employee is generally at liberty to explore other employment opportunities at any point, provided they comply with valid notice and contractual requirements.
Obligations of the Employer in Case of Closure
When an employer, including a POGO company, opts to close or cease operations, Articles 298 and 299 of the Labor Code (formerly Articles 283 and 284) specify the conditions under which the company may lawfully terminate employees for authorized causes. A legitimate closure or cessation of business may not be considered illegal dismissal, provided the employer meets procedural and substantive due process requirements. Employees affected by an authorized closure are often entitled to separation pay (usually one month’s pay or one-half month’s pay for every year of service, depending on the nature of closure and if it is based on authorized causes other than serious business losses). Employers are also expected to furnish notice of closure to the DOLE and to the affected employees at least 30 days prior to the intended date of closure. This means that if a company is shutting down on December 23, 2024, employees should receive formal notice of this closure with sufficient lead time, barring extraordinary circumstances.
Effect of the Announced Closure Date on Employee Decisions
The employer’s announcement of a closure date offers employees clarity regarding the continuity of their roles. Once that date is set, an employee might anticipate job displacement and prudently search for a new position. Labor laws in the Philippines generally do not penalize employees for seeking new employment, even if they intend to remain with their current employer until the final closure date. However, employees should consider the following:
- Notice Periods and Turnover: Properly tendering a resignation, if necessary, involves abiding by any contractual notice period (commonly 30 days). If an employee wishes to leave before December 23, 2024, to start a new job, they should coordinate with the employer to ensure a smooth transition.
- Separation Pay and Final Pay: Should the employee remain employed until the closure date, the employer is generally obliged to provide separation pay if the closure is for an authorized cause, along with final pay that includes unpaid wages, unused leave conversions, and any proportionate 13th-month pay, among others.
- Contractual Constraints: If the employee is bound by a non-competition or confidentiality clause, they must review its terms to ensure compliance when moving to a new employer, especially if the prospective employer is engaged in a similar line of business or is also a POGO operator.
Non-Competition Clauses and Reasonableness
Certain employment contracts, particularly in specialized or high-level positions within POGO companies, may contain non-competition clauses. Under Philippine jurisprudence, such clauses must be reasonable in duration, geographical scope, and the nature of restricted activities. Courts weigh the employer’s interest in protecting legitimate business assets (e.g., trade secrets, client lists) against the employee’s fundamental right to earn a livelihood. Where a POGO operator ceases operations entirely, the enforceability of a non-compete provision may be subject to heightened scrutiny, given that the employer is no longer conducting any business post-closure. Even so, employees who have signed non-competes or confidentiality agreements are advised to seek legal counsel to determine if the restrictions remain valid or if the closure effectively renders them moot.
Foreign Employees in POGO Settings
Many POGO firms employ foreign nationals as subject matter experts, often requiring them to obtain Alien Employment Permits (AEPs) from the DOLE and sometimes Special Working Permits (SWPs) from the Bureau of Immigration. In the event of a POGO closure, foreign employees must ensure that their change of employment status is duly reported and that they obtain the necessary permits to legally work for a new employer. Although the primary question—whether one can look for a job before the closure—is answered in the affirmative, foreign workers must navigate additional immigration documentation. If a foreign employee terminates employment before December 23, 2024, they must secure the relevant clearances, update their AEP to reflect any new employer, and comply with Bureau of Immigration rules regarding visa changes or extensions.
Consequences of Leaving Before Closure
Leaving one’s employment before the announced closure date can have financial and procedural implications. Typically, if an employee resigns, they are not entitled to separation pay unless the employer elects to grant it as a gesture of goodwill or if a collective bargaining agreement (CBA) or company policy provides otherwise. By contrast, if an employee waits until the closure takes place for authorized causes, they will likely be entitled to separation benefits under the Labor Code. Each person’s circumstances differ, however, and some might choose immediate employment stability with a new job over waiting for closure-related benefits, especially if a promising position arises beforehand. Consulting with a legal professional can help clarify the trade-offs.
Right to 13th Month Pay and Other Monetary Benefits
Regardless of whether an employee remains until the official closure date or resigns earlier, they are entitled to all monetary benefits that have accrued up to their separation. This typically includes proportionate 13th month pay, unpaid wages, and compensation for unused leaves, as mandated by law or company policy. If the POGO company closes prior to the statutory deadline for paying the 13th month (on or before December 24 of each year, under Presidential Decree No. 851), employees are still entitled to a prorated amount. In practice, an employee who departs months before the closure date should request the settlement of these benefits at the time they process their resignation clearance or final pay.
Potential Liability for Premature Exit
Absent a contractual penalty clause or a specified bond (sometimes found in training agreements), Philippine labor law does not impose general liability on employees who choose to resign before the announced closure date. However, if an employment contract explicitly stipulates the need for a certain tenure to ensure compliance with training bond provisions or advanced compensation, employees may risk having to reimburse certain costs. This typically arises in specialized roles or leadership positions requiring substantial company investment. For most employees, though, the requirement is merely to provide sufficient notice and assist in the orderly transition of responsibilities.
Doctrine of Constructive Dismissal
The concept of constructive dismissal arises when an employer’s actions effectively force an employee to resign without explicitly terminating them. An announced closure date does not, by itself, constitute constructive dismissal, because it is a legitimate business decision, provided it follows statutory notice requirements. Employees who feel coerced into resigning prior to the official closure date—maybe through a hostile work environment—could attempt to file a complaint for constructive dismissal if they believe the employer’s conduct was illegal or in bad faith. Nonetheless, the existence of a publicly declared cessation of business generally places an employer on firm legal ground, so long as they comply with the procedural requirements of DOLE, provide the appropriate notice, and pay separation benefits, if mandated.
Employment Agreements vs. Labor Code Provisions
In the Philippines, the Labor Code is considered a social legislation measure intended to protect workers, thus provisions in individual or collective contracts that are less favorable than the minimum standards set by law are considered void. Any stipulation in a POGO employee’s contract that completely bans them from seeking new employment before the official cessation date—without a valid reason or legitimate interest—would likely be scrutinized by the National Labor Relations Commission (NLRC) or the courts. Therefore, while contractual provisions can shape the notice period or certain post-employment restrictions, these cannot infringe upon the employee’s fundamental rights to livelihood and due process.
Role of the Department of Labor and Employment (DOLE)
DOLE oversees compliance with labor standards and guidelines on termination of employment. Should a worker suspect that the closure announcement is a pretext to circumvent labor obligations, or that the employer is not abiding by the required notice and separation pay rules, they can file a labor complaint or seek advice from the DOLE. However, so long as the closure is legitimate and notice requirements are met, DOLE is unlikely to impede employees from searching for or accepting new employment. In fact, one of DOLE’s main objectives is to help displaced workers transition to new opportunities, sometimes offering job-placement services and financial assistance.
Additional Practical Considerations
Beyond purely legal questions, practical considerations often come into play when deciding whether to start looking for a new job before December 23, 2024. These include:

Market Conditions: The POGO sector’s volatility might motivate employees to find more stable positions elsewhere sooner rather than later.
Career Growth: Employees might identify better career advancement options outside the POGO industry and choose to resign early.
Timing of Separation Pay: Some employees might calculate that it is more beneficial to remain employed until closure to ensure receipt of separation benefits.
Personal Circumstances: Family considerations, relocation needs, or job-market timing can also inform an employee’s decision.

Steps to Take When Searching for a New Job
Review Your Contract: Identify any notice periods, restrictive covenants, or clauses that may affect your departure.
Assess Your Entitlements: Determine if you will be eligible for separation pay, final pay, or other benefits by waiting until closure.
Plan Your Timeline: If you find a new job with a start date prior to December 23, 2024, coordinate your resignation to comply with contractual and legal requirements.
Obtain Clearance: Ensure you receive necessary clearances or certifications from your current employer, which you may need when applying for new roles.
Secure References: Ask your current employer if they are willing to provide reference letters or endorsement, provided this does not conflict with the closure timeline.
Check Immigration Requirements (If Applicable): If you are a foreign national, ensure your new employer assists with the AEP or appropriate work visa changes.
Due Process and Fair Treatment
Under the Philippine labor system, fairness, good faith, and reasonableness guide how employers and employees conduct themselves in termination or resignation scenarios. The closure must be communicated clearly, ideally in writing, indicating reasons for the cessation and how it aligns with authorized causes under the Labor Code. Conversely, employees must communicate their intention to resign clearly and within the allowed time frames. Courts or labor arbiters tend to favor employees in cases of ambiguity, so employees should keep written records of relevant communications.
Estoppel and Company Announcements
Should a POGO company make repeated assurances of continued operation but then abruptly announce closure, employees might argue estoppel if they relied on the employer’s representations to their detriment. However, where the employer provides adequate notice (e.g., well before December 23, 2024), that notice is typically deemed sufficient to legitimize the closure. Employees who have credible evidence of being misled to remain employed under false pretenses might explore legal remedies, although proving such a case requires clear and convincing documentation of misrepresentation.
Remedies for Employees Post-Closure
Once a POGO company officially closes on December 23, 2024, employees who have not found alternative employment can potentially seek recourse through the following:

Unemployment Insurance or Financial Assistance: Although the Philippines does not have a comprehensive unemployment insurance system, the Social Security System (SSS) provides limited unemployment benefits to qualified members.
DOLE Programs: DOLE occasionally offers various programs, job fairs, or livelihood training for displaced workers.
Legal Action for Non-Payment of Separation Pay: If the employer fails to provide mandated separation pay for an authorized cause closure, employees can file a case with the NLRC.

Conflict of Interest Considerations
In some instances, POGO employees hold positions that grant them access to sensitive data, such as high-value client information, proprietary gaming software, or strategic operational details. If they seek employment with a competitor or a company within a similar industry, they must remain mindful of potential conflict-of-interest or intellectual property issues. Even with the closure scheduled, misuse or unauthorized disclosure of confidential information could expose the departing employee to civil or criminal liability under the Intellectual Property Code (Republic Act No. 8293) or relevant confidentiality laws.
Balancing Company Loyalty and Personal Interests
Employment relationships are anchored in mutual trust. While the closure announcement might erode that trust, employees intending to remain until the final day often still owe a duty of loyalty and care to their employer’s operations. If an employee decides to job-hunt prior to the closure, it is prudent to maintain professionalism, refrain from disclosing proprietary information to prospective employers, and ensure that any potential conflicts of interest are addressed.
Importance of Transparency with Prospective Employers
Job seekers transitioning from a soon-to-close POGO company may be asked by prospective employers about the reasons for leaving. In such instances, honest disclosure of the impending closure can help prospective employers understand the situation. This transparency often fosters a smoother hiring process, as it clarifies that the employee is not leaving for performance issues but rather due to external business circumstances beyond their control.
Practical Tips for a Smooth Transition

Communicate Early: If you decide to resign before December 23, 2024, provide ample notice to your current employer.
Negotiate a Release Date: If you need to start your new job sooner, request a release date that balances the employer’s operational needs with your personal career goals.
Obtain a Certificate of Employment (COE): Philippine employers commonly provide a COE, which is often necessary for future job applications.
Settle Outstanding Obligations: Ensure company property is returned, loans are settled, and all relevant documents are completed.
Maintain Professionalism: Leave on good terms to preserve professional relationships and maintain a positive reputation in the industry.

Case Law Insights
Philippine case law generally supports the principle that employees retain the right to seek better opportunities unless bounded by a just, reasonable, and clearly stated restriction. In case disputes arise over separation pay or final pay, the NLRC or labor courts typically look at the employer’s compliance with statutory obligations. In the event of a closure, courts check whether the company followed procedural requirements, including the timely notice of cessation.
Handling Confidential Information
Regardless of the closure, employees must remain cautious about handling and transferring data, files, or intellectual property belonging to the POGO company. The fiduciary duty to protect the employer’s legitimate business interests survives the employment relationship, but the scope of this duty may vary. Employees can seek legal advice if they feel uncertain about what they can or cannot bring to a new workplace—especially if the new employer competes directly with the old one.
Conclusion: The Right to Seek New Employment
Based on the Labor Code, jurisprudence, and constitutional guarantees in the Philippines, employees have the right to look for new employment even if the current employer has set a definite closure date. The mere fact that the company is ceasing operations on December 23, 2024, does not restrict an employee from exploring other career opportunities. However, the practical details—such as compliance with notice requirements, consideration of separation pay, and adherence to confidentiality or non-competition clauses—should be handled diligently.
Legal Advice Disclaimer
While this article strives to provide comprehensive insights into Philippine labor law relating to an announced POGO closure, it is not a substitute for individualized legal advice. Each situation involves unique factors that may alter the general guidelines. Employees—particularly those with complex contract provisions, foreign worker status, or managerial roles—are encouraged to consult directly with legal counsel to ensure they understand and protect their rights.
Key Takeaways
Freedom to Seek Employment: Employees are free to look for new jobs at any point, subject to contractual obligations like notice periods and non-competition clauses.
Separation Pay and Final Pay: If the closure is lawful and for an authorized cause, employees who remain until closure are typically entitled to separation pay.
Procedural Compliance: Employers closing operations must follow DOLE guidelines, provide notice, and settle financial obligations to employees.
Resignation vs. Closure: Resigning before the closure could mean foregoing separation pay, although final pay benefits still apply for the period worked.
Foreign Worker Considerations: Foreign nationals need to handle work permits and visas carefully when transitioning to a new employer.
Final Thoughts
The Philippine legal framework emphasizes worker protection and the principle that any limitations on a person’s ability to seek new employment must be justified by clear and reasonable contractual terms. If a POGO company declares a hard stop date, such as December 23, 2024, employees can generally start looking for new employment without fear of breaching labor laws, so long as they observe valid notice requirements and do not violate legitimate, enforceable contract clauses. Balancing the opportunity to transition smoothly with the potential benefits of waiting for separation pay is a personal decision that each employee must carefully evaluate.
Recommended Steps

Confirm with your employer or human resources department the specifics of the closure timeline, any severance packages, and final pay computations.
Examine any employment contract provisions that might restrict your employment choices or penalize early resignation.
If you are inclined to seek a new job, prepare your resignation letter properly, ensuring that you respect the notice period.
In case of doubts, consult a lawyer specializing in labor law to review your contract and your prospective employer’s terms.

Encouragement to Seek Legal Counsel
The complexities of Philippine labor law, combined with the unique regulatory environment of POGO operations, make personalized legal counsel invaluable. A qualified attorney can provide practical solutions and verify compliance steps, particularly if your prospective employer is also part of the gaming sector. Knowing your rights and obligations will enable you to make informed decisions that maximize your career prospects while maintaining a respectful and legally sound relationship with your current employer.
Conclusion
To summarize, there is no absolute legal barrier preventing an employee from pursuing new employment if their POGO employer is set to close on December 23, 2024. Philippine law prioritizes the constitutional right to earn a livelihood, while mandating fair labor practices on the part of employers. Employees are advised to exercise due diligence: reviewing contractual terms, weighing the merits of waiting for closure benefits, and respecting notice requirements. In uncertain times—when even well-established POGO entities may discontinue operations—it is both prudent and lawful to secure one’s professional future by seeking new job opportunities. Ultimately, the synergy between individual rights and employer obligations creates a balanced framework, ensuring that both parties can navigate the impending closure with transparency, fairness, and foresight.

(This completes a thorough discussion of the legal dimensions surrounding an employee’s right to seek new employment in light of an impending POGO company closure, under Philippine law. It is provided for general information and does not constitute specific legal advice. For tailored guidance, individuals should consult a legal professional with experience in labor law and POGO regulations.)