In the Philippine labor landscape, a recurring point of contention is whether an employer can legally refuse or "block" an employee’s resignation when that employee is currently the subject of an administrative or due process investigation. This intersection of the right to quit and the employer’s right to discipline is governed by the Labor Code, Civil Code, and established Supreme Court jurisprudence.
1. The Principle of Voluntary Resignation
Under Philippine law, resignation is the voluntary act of an employee who finds themselves in a situation where they believe personal reasons cannot be sacrificed in favor of the exigencies of the service.
- Article 300 [285] of the Labor Code: An employee may terminate the employment relationship without just cause by serving a written notice on the employer at least one (1) month (30 days) in advance.
- The Right Against Involuntary Servitude: The 1987 Constitution prohibits involuntary servitude. Consequently, an employer cannot physically or legally compel an employee to remain in their service against their will.
2. Can an Employer "Refuse" the Resignation?
Technically, no. An employer cannot "reject" a resignation to force an employee to keep working. Once the 30-day notice is served (or if the employer waives the notice period), the employment contract is severed.
However, the "acceptance" of a resignation is crucial for a clearance process. While an employer cannot force you to work, they can refuse to "clear" you of administrative liabilities if an investigation is pending.
3. The Impact of a Pending Investigation
While the act of resigning is a right, it does not function as a "get out of jail free" card. Resigning during a due process investigation carries specific legal implications:
A. Jurisdiction Over the Case
The Supreme Court has held that the resignation of an employee does not automatically render an administrative case moot. The employer retains the right to complete the investigation to determine:
- Liability for Damages: If the employee’s actions caused financial loss.
- Eligibility for Benefits: Whether the employee is entitled to separation pay or back wages (though separation pay is generally not required in voluntary resignations).
B. Dismissal vs. Resignation
If the investigation concludes that there is sufficient cause for termination (e.g., serious misconduct or willful breach of trust) before the resignation becomes effective, the employer may record the separation as a "Dismissal for Cause" rather than a voluntary resignation. This has significant impacts on future employment checks and clearance.
C. Withholding of Final Pay and Clearance
Under Labor Advisory No. 06, Series of 2020, an employer must release the final pay within 30 days from the date of separation. However, the employer is allowed to withhold an amount necessary to cover the employee’s existing liabilities to the company.
- If the investigation involves accountability for funds or property, the employer may legally withhold clearance until the property is returned or the accountability is settled.
4. "Resignation to Evade" (The Doctrine of Bad Faith)
If an employee resigns specifically to evade a disciplinary sanction, the employer can proceed with the investigation in absentia. If found guilty of a terminable offense:
- The employer can note the findings in the employee’s personnel file.
- The employer is not obligated to provide a "clean" certificate of employment, though they must remain factual in any references provided.
5. Important Nuances
| Scenario | Legal Standing |
|---|---|
| Notice Period | The employee must stay for 30 days unless the employer agrees to a shorter period. Failure to give notice may make the employee liable for damages. |
| Preventive Suspension | An employer may place an employee under preventive suspension (max 30 days) during an investigation. Resigning during this time does not stop the clock on the 30-day limit. |
| Criminal Liability | Resignation does not extinguish criminal or civil liability. If the investigation reveals theft or fraud, the employer can still file cases with the Prosecutor’s Office. |
Summary of Legal Reality
In the Philippines, an employer cannot legally prevent an employee from walking out the door and ending the employment relationship, provided the 30-day notice rule is respected. However, the employer can refuse to grant a clean exit—meaning they may finish the investigation, reflect a "Dismissal" on the records if proven, and withhold clearance until all financial accountabilities arising from the investigation are satisfied.
The resignation ends the service, but it does not necessarily end the accountability.