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June 1, 2022

The Tenor of a Voluntary Resignation of an Employee and its Effects

Related article: Understanding the nature and consequences of resignation

One of the fundamental rights of a person is the right against involuntary servitude. This right is expressly provided under our Constitution which states that no involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted (Read here). In view thereof, since any forms of involuntary servitude are prohibited, our labor laws allow employees to terminate or discontinue their services from their employers through voluntary resignation.

Resignation and its essential elements

Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice but to dissociate oneself from employment. It is a formal pronouncement or relinquishment of an office, with the intention of relinquishing the office accompanied by the act of relinquishment. As the intent to relinquish must concur with the overt act of relinquishment, the acts of the employee before and after the alleged resignation must be considered in determining whether he or she, in fact, intended to sever his or her employment (Gan vs. Galderma Philippines, Inc. G.R. No. 177167, January 17, 2013). In view thereof, the resignation must show the concurrence of two (2) important elements, these are (1) intention to relinquish employment or office and (2) the overt acts of relinquishment.

However, to be considered as a valid relinquishment of employment, it is an indispensable requisite that the resignation of an employee is done voluntarily. It is a settled doctrine that the resignation of an employee is presumed voluntary, unless proven otherwise (St. Michael Academy vs. NLRC 292 SCRA 478, July 13, 1998). Bare allegations of threat or force do not constitute substantial evidence to support a finding of forced resignation (Virjen Shipping Corporation vs. Barraquio 585 SCRA 541, April 16, 2009).

Voluntariness of Resignation

As previously mentioned, resignation of an employee is presumed voluntary. This is different in illegal dismissal cases, the fundamental rule is that when an employer interposes the defense of resignation, the burden to prove that the employee indeed voluntarily resigned necessarily rests upon the employer.

To prove the voluntariness of employee’s resignation, it is a well-accepted principle under our jurisprudence that the voluntariness of the resignation of an employee may be inferred from the language used. For instance, a resignation letter which contains words of gratitude and appreciation to the employer can hardly come from an employee who was forced to resign (St. Michael Academy vs. NLRC, G.R. No. 119512, 292 SCRA 478, July 13, 1998). Clearly, the employee’s use of words of appreciation and gratitude negates the notion that she was forced and coerced to resign (Gan vs. Galderma Philippines, Inc., G.R. No. 177167, 688 SCRA 666, January 17, 2013). Allegations of coercion are belied by words of gratitude coming from an employee who is just forced to resign (Auza, Jr. vs. MOL Philippines, Inc., G.R. No. 175481, 686 SCRA 66, November 21, 2012).

Effects of Voluntary Resignation

A duly accepted resignation effectively terminates the employer-employee relationship (BMG Records (Phils.), Inc. vs. Aparecio 532 SCRA 300, September 05, 2007). It is important to note that the Labor Code does not contain provision granting separation pay to voluntarily resigned employees. On the same basis, separation pay is granted only in cases where the reason for separation from employment is beyond the control of the employee such as in cases of retrenchment or dismissal by the employer (Acosta, Persida, Staff voluntarily resigns, employer need not give separation pay, The Manila Times, December 05, 2014).

There are, however, certain instances when an employee who voluntarily resigns is entitled to a separation pay such as when grant of separation pay to resigning employees has been an established business practice by the employer, or when a written agreement to such effect has been made between the employer and employee (Alfaro vs. Court of Appeals G.R. No. 140812, August 28, 2001).


OTHER SOURCES:

1. Acosta, Persida, Staff voluntarily resigns, employer need not give separation pay, The Manila Times, https://www.manilatimes.net/staff-voluntarily-resigns-employer-need-give-separation-pay/146730/, December 05, 2014, Last Accessed: May 21, 2019


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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