I. Introduction

In Philippine labor law, separation pay is often misunderstood as an automatic benefit whenever employment ends. Many employees assume that once they leave a company, they are entitled to a monetary separation package. Employers, on the other hand, sometimes assume that resignation always cuts off any obligation to pay additional benefits beyond final wages.

The correct rule is more nuanced.

A resigned employee is not generally entitled to separation pay as a matter of right, especially when there is no collective bargaining agreement, company policy, employment contract, or established practice granting it. However, there are recognized exceptions. A resigned employee may still receive separation pay if the benefit is granted by law, agreement, company policy, employer practice, equity, or as part of a negotiated separation arrangement.

In the Philippine context, the key question is not simply whether the employee resigned. The better question is:

What is the legal, contractual, or factual basis for claiming separation pay despite resignation?

II. What Is Separation Pay?

Separation pay is a monetary benefit given to an employee whose employment has been terminated under certain circumstances. In the Philippines, separation pay most commonly arises under the Labor Code, especially in cases of authorized causes of termination.

It is different from:

Final pay, which includes unpaid salary, pro-rated 13th month pay, unused leave conversions if applicable, tax refunds if any, and other amounts already earned by the employee.

Retirement pay, which applies when an employee retires under the law, a retirement plan, CBA, or company policy.

Backwages, which are awarded in illegal dismissal cases to compensate an employee for income lost due to unlawful termination.

Damages or financial assistance, which may be granted in certain cases based on equity, bad faith, or other legal grounds.

Separation pay is therefore not a universal exit benefit. It depends on the reason for the end of employment and the source of the entitlement.

III. General Rule: A Resigned Employee Is Not Entitled to Separation Pay

The general rule in Philippine labor law is that an employee who voluntarily resigns is not entitled to separation pay, unless there is a legal or contractual basis for it.

Resignation is a voluntary act. It is the employee’s decision to end the employment relationship. Since the employer did not terminate the employee for an authorized cause, the statutory provisions on separation pay usually do not apply.

In ordinary resignation, the employer’s usual obligation is to release the employee’s final pay, not separation pay.

Final pay may include:

unpaid salary;
salary for days worked in the final payroll period;
pro-rated 13th month pay;
cash conversion of unused service incentive leave, if applicable;
cash conversion of unused vacation or sick leave, if allowed by company policy, contract, or practice;
commissions, incentives, or bonuses already earned and payable;
tax refund, if any;
other amounts due under contract, policy, or law.

Separation pay is not automatically part of final pay.

IV. Effect of the Absence of a CBA

A collective bargaining agreement, or CBA, may grant separation pay even in cases where the Labor Code would not otherwise require it. For example, a CBA may provide that employees who resign after a certain number of years of service will receive a gratuity or separation benefit.

But when there is no CBA, the employee cannot rely on CBA-based benefits. This does not automatically defeat the claim, but it narrows the possible grounds.

Without a CBA, a resigned employee must show another basis, such as:

an individual employment contract;
an employee handbook;
company policy;
retirement or separation plan;
voluntary employer undertaking;
established company practice;
quitclaim or separation agreement;
constructive dismissal;
forced resignation;
resignation due to employer fault;
equity-based financial assistance in exceptional cases.

Thus, the absence of a CBA means only this:

There is no collectively bargained source of separation pay. It does not necessarily mean there is no possible source at all.

V. When a Resigned Employee May Receive Separation Pay Without a CBA

A. When the Employment Contract Grants It

An employment contract may provide benefits greater than those required by law. If the contract states that the employee is entitled to separation pay upon resignation, the employer must comply.

For example, a contract may say:

“An employee who resigns after at least five years of continuous service shall receive separation pay equivalent to one-half month salary for every year of service.”

In that case, the employee’s entitlement comes from contract, not from the Labor Code or a CBA.

The employer cannot avoid payment by saying that the law does not require separation pay for resigning employees. Parties may validly agree to benefits more favorable than the statutory minimum.

B. When the Employee Handbook or Company Policy Grants It

An employee handbook or company policy may also be a source of separation pay.

Some companies adopt policies granting separation, gratuity, or transition pay to employees who resign after a minimum length of service. The policy may be called something else, such as:

gratuity pay;
loyalty pay;
service award;
separation benefit;
resignation benefit;
exit benefit;
transition assistance.

The name of the benefit is not controlling. What matters is the substance of the policy.

If the policy clearly grants a monetary benefit upon resignation, and the employee meets the conditions, the benefit may be demandable.

However, if the handbook clearly limits separation pay to retrenchment, redundancy, closure, disease, or other employer-initiated termination, then a resigning employee generally cannot claim it.

C. When There Is an Established Company Practice

Even without a CBA, written contract, or formal policy, an employer may become bound by a consistent and deliberate company practice.

A benefit ripens into a demandable company practice when it is:

consistently granted;
deliberately given by the employer;
not merely a mistake or isolated act;
known or reasonably ascertainable;
granted over a substantial period;
not subject to clear reservation or discretion.

For example, if a company has repeatedly paid separation benefits to resigning employees with at least ten years of service, and did so consistently over many years, later employees may argue that the practice has become part of the terms and conditions of employment.

The difficulty is evidentiary. The employee must prove the practice. Useful evidence may include:

pay slips of former employees;
clearance documents;
quitclaims showing payment of separation pay;
internal memoranda;
emails from management;
testimony of similarly situated former employees;
payroll records;
HR manuals or exit computation templates.

A single instance of generosity is usually not enough. Repeated, consistent, and intentional grant is important.

D. When the Employer Voluntarily Grants Separation Pay

An employer may voluntarily give separation pay even if not legally required. This may happen for goodwill, business reasons, settlement, compassion, or to avoid disputes.

A voluntary grant may appear in:

a resignation acceptance letter;
a separation agreement;
a quitclaim;
a settlement agreement before the labor office;
an internal approval by management;
a board resolution;
a special retirement or separation package.

Once the employer validly promises the benefit and the employee accepts or relies on it, the employer may be bound by that undertaking.

E. When the Resignation Was Actually Forced or Involuntary

A resignation must be voluntary to be treated as a true resignation. If the employee was pressured, coerced, threatened, deceived, or left with no real choice, the case may not be a simple resignation.

This is commonly raised as constructive dismissal.

Constructive dismissal occurs when an employer makes continued employment impossible, unreasonable, or unlikely, or when the employee is compelled to resign because of hostile, oppressive, discriminatory, humiliating, or unlawful employer conduct.

Examples may include:

demotion without valid cause;
drastic reduction of salary;
unbearable harassment;
forced resignation under threat of dismissal without due process;
reassignment made in bad faith;
unreasonable diminution of rank, benefits, or responsibilities;
exclusion from work without lawful basis;
fabricated charges used to pressure resignation;
intolerable working conditions intentionally created by management.

In such cases, the employee may claim that the “resignation” was not voluntary. If constructive dismissal is proven, the employee may be entitled to remedies for illegal dismissal, which may include reinstatement, backwages, separation pay in lieu of reinstatement when reinstatement is no longer feasible, and other reliefs depending on the case.

The resignation letter is important evidence, but it is not always conclusive. Labor tribunals may examine the surrounding circumstances.

F. When the Resignation Was Due to Employer Fault

There are cases where an employee resigns because the employer committed acts that justify the employee’s severance from employment. This overlaps with constructive dismissal, but it may also involve resignation based on serious employer misconduct.

Under Philippine labor principles, an employee may terminate the employment relationship without notice for just causes attributable to the employer, such as serious insult, inhuman treatment, commission of a crime against the employee or the employee’s family, or other analogous causes.

Where the resignation is caused by the employer’s wrongful acts, the employee may not be treated as having simply resigned in the ordinary sense. Depending on the facts, the employee may pursue claims connected with illegal dismissal, damages, unpaid benefits, or other reliefs.

However, this does not mean that every resignation due to dissatisfaction entitles the employee to separation pay. The employer’s conduct must be legally significant and provable.

G. When Separation Pay Is Part of a Settlement

A resigned employee may receive separation pay as part of a negotiated settlement, even if the employee has no automatic legal entitlement.

This often happens when there are pending or potential disputes, such as:

unpaid wages;
overtime claims;
illegal dismissal allegations;
constructive dismissal allegations;
commissions or incentives;
harassment complaints;
non-compete or confidentiality concerns;
clearance disputes.

The parties may agree that the employer will pay a certain amount in exchange for a quitclaim, waiver, and release.

A quitclaim is generally valid if:

it is voluntarily signed;
the employee understands its terms;
the consideration is reasonable;
there is no fraud, intimidation, coercion, or undue pressure;
it does not waive benefits that are legally due without adequate consideration.

A quitclaim cannot automatically defeat legitimate labor claims if it was obtained through deception, coercion, or for a grossly inadequate amount.

H. When the Employee Qualifies for Retirement Pay Instead

Sometimes what an employee calls “separation pay” is actually retirement pay.

Under Philippine law, employees who reach the applicable retirement age and meet the minimum service requirement may be entitled to retirement benefits, unless there is a more favorable retirement plan, CBA, or agreement.

If an employee resigns at or near retirement age, the proper issue may be whether the resignation should be treated as retirement or whether the employee is entitled to retirement benefits under law or company policy.

Retirement pay is different from separation pay, but both may be paid upon the end of employment depending on the circumstances.

VI. When a Resigned Employee Usually Cannot Claim Separation Pay

A resigned employee usually cannot claim separation pay when:

the resignation was voluntary;
there is no CBA;
there is no employment contract granting separation pay;
there is no company policy granting it;
there is no established company practice;
there is no employer promise or settlement agreement;
there is no constructive dismissal;
there is no retirement entitlement;
the employee merely assumes that long service automatically creates a right to separation pay.

Length of service alone does not automatically entitle a resigning employee to separation pay. Long service may support an appeal for compassion or financial assistance, but it does not by itself create a legal right.

VII. Separation Pay Under the Labor Code: Why It Usually Does Not Apply to Resignation

The Labor Code provides separation pay mainly in cases of authorized causes of termination. These are employer-initiated or circumstance-based terminations, not ordinary resignations.

Common authorized causes include:

installation of labor-saving devices;
redundancy;
retrenchment to prevent losses;
closure or cessation of business;
disease, when continued employment is prohibited by law or prejudicial to health.

In these situations, separation pay is required because the employee loses employment through no fault of their own.

By contrast, resignation is employee-initiated. The employee voluntarily ends the employment relationship. For this reason, statutory separation pay provisions generally do not apply.

VIII. Resignation Versus Authorized Cause Termination

The distinction matters.

Resignation

The employee initiates the separation. The employer generally pays final pay only, unless another basis for separation pay exists.

Retrenchment

The employer terminates employment to prevent or minimize business losses. Separation pay is generally required.

Redundancy

The employer terminates employment because the position is in excess of business needs. Separation pay is generally required.

Closure

The employer closes the business or undertaking. Separation pay may be required, depending on the nature of closure and applicable law.

Disease

The employee is terminated because continued employment is prohibited by law or prejudicial to health, and proper certification requirements are satisfied. Separation pay is generally required.

A resignation letter may not control if the real reason for separation was redundancy, retrenchment, closure, or other employer-initiated termination. Labor authorities may look at the substance over the form.

IX. The Importance of Voluntariness in Resignation

For resignation to be valid, it must be voluntary and intentional. The employee must have a clear intention to relinquish employment.

Indicators of voluntary resignation may include:

a resignation letter written by the employee;
clear statement of intent to resign;
observance of notice period;
turnover of work;
completion of clearance;
absence of immediate protest;
acceptance of final pay;
execution of a valid quitclaim.

Indicators that resignation may be involuntary include:

resignation letter prepared by the employer;
threat of immediate dismissal without hearing;
pressure to resign under humiliating circumstances;
resignation signed during investigation under duress;
immediate protest after resignation;
filing of a labor complaint soon after separation;
lack of clear resignation intent;
evidence of harassment or coercion.

The burden of proving voluntary resignation may become important when the employee alleges illegal dismissal or constructive dismissal.

X. Is Separation Pay the Same as Financial Assistance?

No.

Separation pay is generally based on law, contract, policy, practice, or valid agreement.

Financial assistance is sometimes granted by courts or labor tribunals as a measure of equity, compassion, or social justice, especially where strict legal entitlement is absent but circumstances justify some relief.

However, financial assistance is not automatic. It is generally not awarded where the employee was guilty of serious misconduct or where the facts do not justify equitable relief.

For resigned employees, financial assistance may be difficult to claim unless there are exceptional circumstances, such as long service combined with humanitarian considerations, employer fault, or unclear circumstances surrounding the separation.

XI. The Role of Company Practice

Company practice is one of the most important non-CBA sources of separation pay.

For a resigned employee without a CBA, proving company practice may be the strongest route if:

other resigning employees received separation pay;
the payments were made under similar circumstances;
the employer did this repeatedly;
the grant was not clearly discretionary;
the employee belongs to the same class of employees covered by the practice.

However, employers may defend by showing that:

previous payments were ex gratia or discretionary;
each payment required special management approval;
there was no uniform formula;
the payments were settlement amounts, not separation pay;
the employee’s situation is different;
the alleged practice was discontinued with notice;
the benefit was mistakenly granted in isolated cases.

The label “company practice” should not be used loosely. It requires proof of consistent, deliberate, and long-standing grant.

XII. Resignation With Notice and Immediate Resignation

Under the Labor Code, an employee generally gives prior notice before resignation, commonly understood as 30 days, unless a shorter period is accepted by the employer or the resignation is for just causes attributable to the employer.

Failure to render the notice period does not automatically create separation pay entitlement. Instead, it may expose the employee to possible liability if the employer proves actual damage caused by the failure to give proper notice.

An employer may waive the notice period. If the employer accepts immediate resignation, the employee remains entitled to final pay and earned benefits, but not automatically to separation pay.

XIII. Common Situations

1. Employee Resigns After Many Years of Service

Long service does not automatically create a right to separation pay. The employee must still point to a contract, policy, practice, retirement plan, or other legal basis.

However, long service may support a request for voluntary financial assistance.

2. Employee Resigns Because of Health Reasons

Resignation due to illness is not the same as termination due to disease under the Labor Code. If the employee voluntarily resigns because of health reasons, separation pay is not automatic.

But the employee may be entitled to other benefits, such as:

final pay;
unused leave conversion, if applicable;
SSS sickness or disability benefits, if qualified;
retirement benefits, if qualified;
benefits under company policy or insurance.

If the employer terminates the employee due to disease and legal requirements are met, separation pay may apply.

3. Employee Resigns Because of Workplace Harassment

If the resignation was caused by harassment, intimidation, discrimination, or unbearable working conditions, the employee may claim constructive dismissal. If successful, the employee may obtain remedies beyond ordinary final pay.

The employee should preserve evidence, such as messages, incident reports, medical records, witness accounts, HR complaints, and resignation-related communications.

4. Employee Resigns During a Disciplinary Investigation

A resignation during investigation is not automatically invalid. Employees sometimes resign voluntarily to avoid prolonged proceedings.

However, if the resignation was forced, extracted under threat, or used to avoid due process, the employee may challenge it.

5. Employee Is Told to “Resign or Be Terminated”

This is fact-sensitive. If the employer has valid grounds and gives the employee a genuine option, resignation may still be voluntary. But if the threat is baseless, coercive, or used to bypass due process, the resignation may be treated as involuntary.

6. Employee Signs a Quitclaim After Resignation

A quitclaim may bar further claims if it is valid, voluntary, and supported by reasonable consideration. But it will not necessarily bar claims if the employee proves fraud, coercion, intimidation, mistake, or gross inadequacy of consideration.

7. Employer Calls the Payment “Separation Pay” in the Final Pay Computation

If the employer includes separation pay in the computation and communicates approval, that may support a claim. But if it was a draft, mistake, or subject to approval, the employee may still need to prove that the employer made a binding commitment.

XIV. What Must the Employee Prove?

A resigned employee claiming separation pay without a CBA should be prepared to prove at least one of the following:

the employment contract grants separation pay upon resignation;
company policy grants the benefit;
the employee handbook grants the benefit;
the company has an established practice of granting it;
the employer promised or approved the benefit;
the resignation was actually forced or involuntary;
the employee was constructively dismissed;
the employee qualifies for retirement benefits;
the benefit was part of a settlement agreement;
equity or exceptional circumstances justify financial assistance.

The employee should gather documents such as:

employment contract;
appointment letter;
employee handbook;
HR policies;
resignation letter;
acceptance of resignation;
final pay computation;
payslips;
clearance forms;
quitclaim documents;
emails, messages, or memoranda from HR or management;
proof of similar payments to other resigned employees;
medical records, if health-related;
evidence of coercion or constructive dismissal, if alleged.

XV. Employer Defenses

An employer may oppose the claim by showing that:

the employee voluntarily resigned;
there is no CBA;
there is no contract granting separation pay;
no company policy grants it;
no established company practice exists;
any previous payments were discretionary;
the employee received all final pay;
the quitclaim is valid;
the claim is actually for a benefit not earned;
the employee is not similarly situated to those who allegedly received payment;
the company’s policy excludes resigned employees.

Employers should be careful, however. Inconsistent treatment of resigned employees may create disputes. If the employer grants separation pay selectively, it should have a clear, documented, non-discriminatory basis.

XVI. Final Pay Must Still Be Released

Even if the resigned employee is not entitled to separation pay, the employer must still settle final pay and issue appropriate employment documents.

Final pay should not be confused with separation pay. An employer cannot withhold earned wages simply because the employee is not entitled to separation pay.

The employer may require clearance procedures, but clearance should not be used abusively to delay payment of undisputed amounts.

The resigned employee may also request a certificate of employment. Under Philippine labor rules, employees are generally entitled to a certificate of employment indicating dates of employment and position or type of work performed.

XVII. The 13th Month Pay Issue

A resigned employee is generally entitled to proportionate 13th month pay for the period worked during the calendar year, provided the employee is covered by the 13th month pay rules.

This is not separation pay. It is an earned statutory benefit.

For example, if an employee resigns effective June 30, the employee may be entitled to pro-rated 13th month pay based on basic salary earned from January to June.

XVIII. Unused Leave Benefits

The Labor Code provides service incentive leave for covered employees. Unused service incentive leave may be commutable to cash.

Vacation leave and sick leave beyond statutory service incentive leave depend on company policy, employment contract, or practice.

Thus, a resigned employee may be entitled to cash conversion of unused leave credits if:

the leave is legally convertible;
the company policy allows conversion;
the employment contract grants conversion;
there is an established practice of conversion.

Again, this is part of final pay, not necessarily separation pay.

XIX. Bonuses, Commissions, and Incentives

A resigned employee may claim bonuses, commissions, or incentives if already earned and payable under the applicable plan, contract, or policy.

The employer may deny payment if the plan clearly requires active employment on the payout date and the condition is valid and consistently applied. But if the bonus or commission has already been earned, the employee may argue that it cannot be forfeited without legal or contractual basis.

The wording of the incentive plan is crucial.

XX. Quitclaims and Waivers

Quitclaims are common in resignation and final pay processing. They usually state that the employee has received all amounts due and releases the employer from further claims.

A quitclaim is not automatically invalid. Philippine labor law recognizes quitclaims when they are voluntarily executed and supported by reasonable consideration.

But quitclaims are looked upon with caution because of the inequality between employer and employee. A quitclaim may be set aside if:

the employee was forced to sign;
the employee did not understand the document;
the amount paid was unconscionably low;
the employer used fraud or intimidation;
the waiver covers benefits legally due but unpaid;
the employee signed under urgent financial pressure caused by the employer’s unlawful act.

A resigned employee who already signed a quitclaim may still challenge it, but must have strong factual and legal grounds.

XXI. Constructive Dismissal: The Most Important Exception

For many resigned employees, the strongest legal argument is not that resignation itself carries separation pay. It is that the resignation was not a true resignation at all.

Constructive dismissal converts the case from voluntary separation into employer-caused loss of employment.

If constructive dismissal is proven, the employee may be entitled to remedies for illegal dismissal. Depending on the case, these may include:

reinstatement without loss of seniority rights;
full backwages;
separation pay in lieu of reinstatement if reinstatement is no longer viable;
unpaid benefits;
damages, if warranted;
attorney’s fees, if legally justified.

Common constructive dismissal indicators include:

forced resignation letter;
demotion;
salary diminution;
transfer made in bad faith;
harassment by superiors;
exclusion from work tools or workplace access;
unreasonable change in duties;
humiliating treatment;
retaliation for complaints;
pressure to resign without due process.

A claim of constructive dismissal must be supported by evidence. Mere disappointment, workplace conflict, or dissatisfaction is not enough.

XXII. Separation Pay in Lieu of Reinstatement

In illegal dismissal cases, the normal remedy is reinstatement plus backwages. However, reinstatement may no longer be feasible because of strained relations, closure of business, abolition of position, hostility, or passage of time.

In that situation, separation pay may be awarded in lieu of reinstatement.

This is different from ordinary separation pay upon resignation. It is a remedy arising from illegal dismissal or constructive dismissal.

Thus, a resigned employee who proves constructive dismissal may receive separation pay not because resignation entitles the employee to it, but because the law treats the employer’s acts as unlawful dismissal.

XXIII. Does Compassion or Social Justice Automatically Grant Separation Pay?

No.

Philippine labor law is protective of labor, but social justice is not a license to grant benefits without legal or factual basis. Courts and labor tribunals may grant equitable relief in proper cases, but they also recognize management rights and contractual limits.

A resigned employee should not rely solely on sympathy. The claim is stronger when supported by contract, policy, practice, employer undertaking, or proof that resignation was involuntary.

XXIV. Practical Checklist for Employees

A resigned employee asking whether separation pay is claimable should answer these questions:

Did I voluntarily resign?
Was I pressured or forced to resign?
Does my employment contract mention separation, gratuity, or resignation benefits?
Does the employee handbook provide benefits for resigning employees?
Has the company paid separation pay to other employees who resigned?
Did HR or management promise me separation pay?
Is there a written final pay computation including separation pay?
Did I sign a quitclaim?
Was the amount in the quitclaim reasonable?
Am I actually qualified for retirement benefits?
Was my position abolished or was I really retrenched or made redundant?
Do I have evidence of constructive dismissal?
Have I received all final pay components?
Are there unpaid commissions, incentives, leave conversions, or 13th month pay?

The answers determine whether the claim is viable.

XXV. Practical Checklist for Employers

Employers handling resignation should ensure that:

resignation letters are voluntary and clear;
acceptance of resignation is documented;
final pay is accurately computed;
separation pay is not included unless intended;
company policies are consistently applied;
discretionary payments are documented as discretionary;
quitclaims are fairly explained and voluntarily signed;
clearance procedures are reasonable;
similarly situated employees are treated consistently;
records are preserved.

If the employer chooses to grant financial assistance, the document should clearly state whether it is:

a legal entitlement;
a contractual benefit;
a settlement amount;
discretionary assistance;
ex gratia payment;
separation pay under policy.

Clear wording helps prevent future claims of company practice or entitlement.

XXVI. Sample Legal Analysis

Suppose an employee resigns after 12 years of service. There is no CBA. The employee claims separation pay because of long service.

The claim will likely fail if there is no contract, policy, practice, or employer promise granting the benefit. Long service alone does not create automatic entitlement.

But the result may change if the employee proves that:

the handbook grants separation benefits after 10 years of service;
the company regularly pays one month salary per year of service to resigning employees;
HR gave a written computation including separation pay;
the employee was forced to resign after a bad-faith demotion;
the employee actually qualified for retirement benefits;
the resignation was part of a settlement.

Thus, in the absence of a CBA, the claim depends heavily on evidence.

XXVII. Key Distinctions

Separation Pay vs. Final Pay

Final pay is generally due to all employees whose employment ends. Separation pay is due only when there is a legal, contractual, policy-based, practice-based, or equitable basis.

Resignation vs. Constructive Dismissal

Resignation is voluntary. Constructive dismissal is employer-caused and involuntary in substance.

Company Practice vs. Employer Generosity

Company practice is consistent and deliberate. Employer generosity may be isolated and discretionary.

Separation Pay vs. Retirement Pay

Separation pay is tied to termination or separation circumstances. Retirement pay is tied to age, service, and retirement rules.

Legal Entitlement vs. Settlement

A settlement payment may be given even when there is no automatic legal entitlement.

XXVIII. Conclusion

A resigned employee in the Philippines may receive separation pay even without a CBA, but not simply because the employee resigned.

The general rule is that voluntary resignation does not entitle an employee to separation pay. In the absence of a CBA, the employee must identify another legal or factual basis. That basis may be an employment contract, company policy, established company practice, employer promise, settlement agreement, retirement entitlement, or proof that the resignation was actually forced or amounted to constructive dismissal.

The most important principle is this:

Separation pay for a resigned employee is not presumed. It must be proven.

A resigned employee should therefore distinguish between final pay, which is generally demandable, and separation pay, which requires a specific basis. Conversely, an employer should not assume that the word “resignation” automatically defeats all claims, especially where the surrounding circumstances suggest coercion, constructive dismissal, or a binding company practice.