Does the 30-Day Resignation Notice Count Toward Length of Service? (Philippines)

Short answer

Yes. If you render your 30-day resignation notice (or whatever shorter/longer period you and your employer actually agree to), that period remains part of your employment. Your length of service runs up to your final, effective separation date—the last day you are legally employed—unless the employer releases you earlier or you resign for a just cause that allows immediate effect.

Legal frame in plain English

Right to resign with notice. An employee may terminate employment by giving written notice at least 30 days in advance. This 30-day lead time exists so the employer can transition the work.
Just causes for immediate resignation. If you resign for serious reasons attributable to the employer (e.g., inhuman treatment, commission of a crime against you, etc.), the 30-day notice is not required.
Waiver/shortening. The employer may waive the notice period or agree to shorten it. If waived, employment ends on the earlier agreed date, and service stops then.
“Acceptance” vs. effectivity. A resignation takes effect on the date stated in the employee’s notice (or the earlier date the employer agrees to). Formal “acceptance” is good practice but not what creates the right to leave.

What exactly “counts” during the notice period?

Your employment status continues during the notice period unless you are released earlier. That means the days in the notice period:

Count toward tenure/length of service. Your service accrues through your final effective date. If your 5-year anniversary lands during the notice period, you do hit that milestone (unless you’re released before then).
Are paid days (if you’re working or on paid status). You receive wages/benefits per normal rules for days worked, rest days, and holidays within the period.
Include “garden leave,” if applicable. If the employer tells you to stop reporting but keeps you on payroll until the effectivity date, you remain employed; the time still counts toward service.

Exception: If the employer releases you immediately and does not keep you on paid status, your employment ends right away. Your length of service stops on that earlier date.

Impact on common benefits and records

13th-month pay. Computed on basic salary actually earned within the calendar year. Days worked (or paid) during the notice period add to the base, increasing the prorated 13th-month pay for that year.
Service Incentive Leave (SIL). Entitlement arises after one year of service, then 5 days per year thereafter.
- If your anniversary falls during the notice, you complete another year of service on that date. Whether you immediately “get” a fresh 5-day SIL bucket depends on policy; the law guarantees 5 days per year of service, and unused SIL is convertible to cash upon separation. Many employers don’t “pro-rate” SIL mid-year, but unused accrued SIL must be paid out when you separate.
Holiday pay / premium pay. Regular rules apply to holidays and rest days that fall within the notice period.
Retirement eligibility (statutory or plan-based). If your effectivity date crosses a service threshold (e.g., 5 years under the statutory retirement pay law, or a plan milestone), the notice days help you qualify—again, unless you’re released earlier.
Separation pay. Resignation does not ordinarily entitle you to separation pay (that’s for authorized causes). Length of service during notice is therefore irrelevant to separation pay in a normal resignation.
Final pay timeline. Final pay (wages, conversions of leave, 13th-month pro-rate, etc.) is generally due after separation, following the employer’s standard payroll and clearance timeline (typically within about 30 days from your separation date, unless a different, lawful timeline applies under company policy/CBAs).
Government contributions (SSS, PhilHealth, Pag-IBIG). Deductions/remittances continue for any paid salary in the notice period, and your contribution history will reflect those months.

Common scenarios

You serve the full 30 days and work as usual.
- Service counts through the 30th day.
- Salary, benefits, and records continue per normal until the effective date.
Employer says “no need to report; we’ll pay you to stay home” (garden leave).
- You’re still employed. The days count toward service.
- You’re paid per agreement; benefits typically continue until the effectivity date.
Employer waives the 30 days and releases you today.
- Employment ends today; no further service accrues.
- You’re not entitled to “pay in lieu of notice” by default (Philippine law does not require employers to pay you for notice you aren’t rendering unless your contract/policy says so or the parties agree).
- Final pay is computed up to today, and benefits are prorated accordingly.
You resign for just cause (immediate).
- Employment ends immediately on your stated date.
- Service stops that day.
- You may pursue claims if the just cause is proven; otherwise, the employer may contest.
Your contract or policy says “60-day notice.”
- The law sets 30 days; parties can agree to vary the period. In practice, many employers can request longer notice, but they also commonly waive or shorten it. Clauses that unreasonably restrain an employee from moving on may be unenforceable in effect. What ultimately controls is the date you both honor as the separation date.

Practical implications for employees

Be precise in your letter. State a clear effective date (“effective 30 calendar days from receipt” or a specific date). Keep proof of delivery/receipt.
Ask about release. If the employer will release you early (with or without pay), get it in writing so your service cut-off is clear.
Mind anniversaries and thresholds. If a milestone (e.g., 5 years for retirement eligibility, or an annual SIL/bonus trigger) falls days after you planned to leave, consider setting your effective date after the milestone—provided the employer doesn’t release you sooner.
Expect normal payroll rules. Holidays, overtime, attendance deductions, and tax withholding still apply during your notice, just like any other month.

Practical implications for employers/HR

Acknowledge and date-stamp. Record the date of receipt of the resignation letter; it determines the 30-day count when a relative formula is used.
Decide on release. If you waive or shorten the notice, confirm the new effectivity date in writing.
Keep payroll consistent. Treat the notice period like any other period of employment unless you formally end employment earlier.
Compute final pay from the effectivity date. Include earned wages, 13th-month pro-rate, and conversion of unused leaves (including SIL), less lawful deductions.
Clearance is not a license to withhold. Use clearance to quantify accountabilities, not to indefinitely delay legally due payments.

Frequently asked questions

Q: If a legal holiday falls within my 30-day notice, does it count toward service? A: Yes. It’s part of your employment timeline. Pay treatment follows normal holiday-pay rules.

Q: I filed a 30-day notice, but my employer told me to stop working tomorrow and won’t pay me for the balance. Can they do that? A: They can release you earlier. If they do and you’re not kept on paid status, service stops on the earlier date. Philippine law doesn’t automatically require “pay in lieu of notice” to the employee; however, your contract/handbook/CBAs might say otherwise.

Q: I cross my 5-year anniversary during my notice. Do I now qualify for statutory retirement pay? A: If you are still employed and paid through the anniversary (i.e., not released earlier), you reach the 5-year service threshold. Whether a retirement payout is due depends on age/plan rules and whether you’re retiring versus resigning; the statutory retirement law applies at optional/compulsory retirement ages unless a superior company plan governs.

Q: Do I get a fresh 5-day SIL the moment I hit a new service year during the notice? A: The law guarantees 5 days per year of service and requires cash conversion of unused SIL upon separation. Employer practices vary on when the new year’s SIL posts; what matters at separation is that unused, accrued SIL is paid.

Q: Can the employer extend my notice beyond 30 days against my will? A: They can request it, and you can agree, but they generally cannot force you to stay past a lawful resignation date you set with proper notice.

Bottom line

Your length of service runs until your employment actually ends. If you render your 30-day resignation notice (or any agreed period), those days count. If the employer releases you earlier and stops paying you, your service ends earlier. Time still counts where you remain on paid status (including garden leave) up to the separation date.