Immediate Resignation: When Is It Considered Valid?

Immediate resignation is prevalent in most companies. While employees may terminate their contract of employment through resignation, a written notice of the resignation must be given in advance. The written notice is counted as 30 calendar days. The purpose of the advance notice is to prevent disrupting the business operation and to protect the employee from being held liable for damages.

This is a common scenario especially when employees no longer feel motivated to work. The decision to resign just comes out of the blue. However, there are some risks involved in tendering an immediate resignation.

What happens if you do not provide resignation notice?

There are certain measures that will be implemented in the event you do not comply with the required notice period. It can have a serious impact on you as an employee because you have not ensured proper transition. Complying with the required notice period means giving the company enough time to find your replacement.

When can an employee resign without serving any notice?

Under Article 285 of the Labor Code, the following circumstances may allow an employee to terminate the contract of employment without serving a written notice.

1. Serious insult by the employer or his representative on the honor and person of the employee;

2. Inhuman and unbearable treatment accorded the employee by the employer or his representative;

3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and

4.Other causes analogous to any of the foregoing.

Separation Pay

If an employee voluntarily resigns from work, he or she may not be entitled to separation pay. However, separation pay will only be given if the severance of employment is beyond the employee's control. For instance, an employer decides to retrench worker to prevent losses and this will force the employee to resign or depart from the company. Under the law, dismissed employee is entitled to separation pay.

Voluntary resignation where severance of employment is the employee's initiative, the law does not require the employer to give separation pay. However, there can still be some exceptions to the rule.

1. When payment of separation pay is stipulated in the employment contract or Collective Bargaining Agreement (CBA, for companies with existing bargaining agent or union);

2. When it is sanctioned by established employer practice or policy.

Pinoy Attorney

Written by : Pinoy Attorney