Certificate of Employment Contents in the Philippines: Can Employers State Reasons for Resignation?

Overview

A Certificate of Employment (COE) in the Philippines is a short, factual document that attests to a person’s employment with a company. It is commonly requested for loan and credit applications, visa processing, new-hire background checks, or simply as a personal record. Because many third parties rely on it, the COE is expected to be neutral and limited to verifiable facts about the employment relationship.

This article explains (1) the legal basis and required contents of a COE, (2) timing and practical procedures, (3) whether an employer may state the reason for an employee’s resignation or separation, and (4) best-practice templates and risk management for both employers and employees.

Legal Basis & Regulatory Expectations

Labor standards guidance. Philippine labor authorities have instructed employers to issue a COE upon the request of a current or former employee and to do so promptly (within a very short, specified period). The guidance clarifies two key points that have become industry practice:

Purpose: A COE simply confirms that the person was employed by the company.
Core contents: At minimum, it states the employee’s dates of employment and the position(s) held. Upon request, it may also state the last or current salary (commonly needed for banks and embassies).

Data privacy law. The Data Privacy Act of 2012 (DPA) and its implementing rules require that personal information processing observe the principles of transparency, legitimate purpose, and proportionality. Because the legitimate purpose of a COE is to certify employment, any information beyond that purpose must be justified and proportionate—or excluded. This legal backdrop is crucial to the question of including the reason for resignation or separation.

What a COE Should Contain

At a minimum:

Employee’s full name
Company name
Employment dates (start date and end date, if separated)
Position or job title(s) (some employers add department)
Issuance details (date, place, signatory name and designation)
Company contact info (for verification)

Optional (only if the employee requests or if reasonably necessary for the stated purpose):

Compensation (current or last basic salary and, if specifically requested, fixed allowances)
Work schedule (if the request is for a purpose that needs it, e.g., visa)
Employment status (e.g., regular, project-based), if material to the request

Generally not included:

Performance evaluations, disciplinary records, pending investigations, reasons for resignation or termination, internal commentary, or subjective statements.

Timing to Issue a COE

Who may request: Any current or former employee may request a COE at any time.
When to issue: Employers are expected to issue the COE within a few days from receipt of the request (practice standard is within three [3] business days). This timeline is separate from the release of final pay (commonly within 30 days from separation unless a shorter period is set by policy or CBA).

The Core Question: Can Employers State Reasons for Resignation?

Short answer

As a rule, no—do not include the reason for resignation or separation in a COE. A COE is designed to be neutral and limited to factual certification. Stating reasons—whether “voluntary resignation,” “redundancy,” “just cause,” or anything more detailed—goes beyond the COE’s basic purpose and risks breaching the DPA’s proportionality principle, inviting privacy and reputational claims, and undermining the COE’s neutrality.

Why reasons are typically excluded

Purpose & proportionality: The COE’s legitimate purpose is to certify employment. The reason for separation is not necessary to prove that fact. Adding it often constitutes excess data under the DPA.
Risk of harm: Characterizing separation can easily shade into subjective or disputed territory (e.g., “poor performance,” “misconduct”), creating potential exposure for defamation, unfair labor practice allegations, or privacy complaints—even if the employer believes the description is accurate.
Misuse risk: Third parties (banks, embassies, prospective employers) may over-interpret a reason and unfairly prejudice the individual.
Regulatory practice: Philippine labor guidance on COEs focuses on dates and positions, with salary upon request—not reasons.

Limited exceptions (with safeguards)

If a reason must be reflected for a specific, legitimate purpose and with the employee’s clear, written request or consent, some employers will:

Issue a separate document (e.g., Certificate of Separation or Employment Record Summary) distinct from the COE; or
Include a minimal, neutral descriptor strictly upon informed, written consent of the employee (e.g., the employee needs proof of involuntary separation to claim a statutory benefit).

Even in these cases, best practice is to keep the wording spare and factual (e.g., “Separated effective [date] due to company-declared redundancy pursuant to [policy reference]”), avoiding evaluative language. For most needs (new-hire checks, loans, visas), no reason is required.

COE vs. Other Employment Documents

COE (neutral certification): Dates, position(s), salary upon request—no reasons.
Certificate of Separation / HR Service Record: May list last day and, if necessary, a terse separation code (e.g., “redundancy”)—preferably only with employee request/consent and where there is a clear, legitimate purpose.
Clearance Form: Internal document confirming return of company property and settlement of accountabilities; not a replacement for a COE.
Reference Letter: Optional, narrative; typically not issued unless the company has a policy to provide references. If given, it should comply with privacy law and avoid disclosing unnecessary or sensitive information without consent.

Practical Guidance for Employers

Adopt a standard COE template that contains only the basics. Train HR/frontline staff to resist ad-hoc insertions.
Route special requests (e.g., salary disclosure, separation reason) through a privacy check:
- What is the purpose?
- Is the information necessary for that purpose?
- Do we have a lawful basis (contract necessity, legal obligation, or written consent)?
Prefer separate documents for non-COE details (e.g., a Certificate of Separation), and keep them succinct and factual.
Keep to official facts only. Never include subjective remarks (e.g., “under investigation,” “problematic attitude”).
Implement turnaround SLAs (e.g., 3 business days) and a simple request channel (email alias or HRIS portal).
Retain logs of requests, signatories, and releases for audit and to evidence compliance with labor and privacy rules.

Practical Guidance for Employees

Be specific in your request. If you need salary indicated (for a bank or visa), say so. If you do not want a reason for resignation included (the default), say “COE for bank/visa—no separation reason.”
If a third party insists on a reason, ask HR to provide it in a separate Certificate of Separation, and request neutral wording (e.g., “voluntary resignation effective [date]”). Provide written consent for any additional personal data.
If your COE contains unnecessary or harmful statements, you may:
- Request a corrected version;
- Elevate to the company Data Protection Officer/HR head citing data minimization under the DPA; and
- If unresolved, consider a DOLE inquiry/assistance or a privacy complaint with the National Privacy Commission.

Templates (Best-Practice, Neutral)

A. Standard Certificate of Employment (No Reason Included)

CERTIFICATE OF EMPLOYMENT This is to certify that [Employee Full Name] was employed by [Company Name] from [Start Date] to [End Date or “Present”], holding the position of [Job Title] [and, if applicable, “in the [Department]”].

This certificate is being issued upon the request of the employee for whatever lawful purpose it may serve.

Issued on [Date] at [City].

[Signature over Printed Name] [Designation] [Company Name | Address | Contact Information]

(Optional line, if requested by the employee: “The employee’s last basic monthly salary is ₱[amount].”)

B. Certificate of Separation (Use Only When Necessary and With Consent)

CERTIFICATE OF SEPARATION This certifies that [Employee Full Name] was separated from [Company Name] effective [Separation Date] due to [e.g., “voluntary resignation” / “redundancy,” as applicable].

Issued upon the employee’s request for [state purpose, e.g., benefit filing].

[Signature / Details as above]

Drafting tips:

Do not include narrative justifications, performance commentary, disciplinary history, or confidential findings.
If a reason is included, state it once, in neutral terms, and only if necessary for a legitimate, stated purpose.

Frequently Asked Questions

1) Is a company required to disclose my salary in a COE? No. Salary is optional and typically included only upon the employee’s request (e.g., for bank or visa purposes).

2) My prospective employer is asking for my “COE with reason for leaving.” What should I do? Provide a standard COE and, if absolutely required, a separate Certificate of Separation that states a neutral reason, ideally limited to a one- or two-word descriptor (e.g., “voluntary resignation”)—and only with your written consent.

3) Can the company refuse to issue a COE until I complete clearance? A COE is a factual certification; withholding it as leverage for clearance is discouraged. Clearance is a separate internal process.

4) May a COE state that I was terminated for cause? It should not. Such statements exceed the COE’s purpose and create legal risks. If documentation of cause is required for a legal proceeding, it should be addressed through the appropriate legal documents—not the COE.

5) What if my employer already issued a COE with harmful or unnecessary statements? Ask for a corrected COE limited to dates and position. If refused, elevate to the DPO/HR citing the DPA’s proportionality and data minimization principles, and consider regulatory assistance.

Key Takeaways

A COE is neutral: it confirms employment dates and position(s) (and salary if the employee asks).
Do not include reasons for resignation or separation in a COE as a matter of policy; it is unnecessary and risky.
If a reason is genuinely necessary for a lawful purpose, issue a separate, minimal certificate and obtain the employee’s informed, written consent.
Align COE practices with the Data Privacy Act and labor-standards guidance to minimize disputes and protect both the employee and the employer.