Introduction

In the Philippine employment landscape, governed primarily by the Labor Code of the Philippines (Presidential Decree No. 442, as amended), the dynamics of employee termination, particularly through resignation, are intricately linked with issues such as Absence Without Official Leave (AWOL) and the withholding of salaries. These concepts ensure a balance between the rights of employees to voluntarily end their employment and the obligations of employers to maintain operational stability while adhering to fair labor practices. This article provides a comprehensive overview of these topics, drawing from statutory provisions, Department of Labor and Employment (DOLE) guidelines, and relevant jurisprudence from the Supreme Court of the Philippines. It covers the legal requirements for resignation notices, the implications of AWOL, and the prohibitions and exceptions regarding salary withholding, including their interrelations in cases of employee separation.

Employee Resignation Notice

Legal Basis and Requirements

Under Article 300 of the Labor Code (renumbered from the original Article 285 by Republic Act No. 10151), an employee may terminate their employment without just cause by serving a written notice on the employer at least one (1) month in advance. This provision is designed to afford the employer sufficient time to find a replacement, train personnel, or adjust operations, thereby minimizing disruptions.

Form of Notice: The notice must be in writing to be valid. Verbal resignations, while sometimes accepted in practice, do not fulfill the statutory requirement and may lead to disputes. The written notice should clearly state the employee's intent to resign and the effective date, which must be at least 30 days from the date of submission.
Exceptions to the 30-Day Notice:
- With Just Cause: If the resignation is due to a just cause under Article 297 (e.g., serious insult by the employer, inhumane treatment, or commission of a crime by the employer against the employee or their family), no notice is required. The employee can terminate immediately.
- Company Policy: Employers may impose longer notice periods through employment contracts or company policies, but these cannot be shorter than the statutory minimum. However, such extensions must be reasonable and not violate the employee's right to resign.
- Probationary Employees: During the probationary period (up to six months under Article 296), the notice requirement applies unless otherwise specified in the contract.
Immediate Resignation: In cases where the employee resigns immediately without notice (absent just cause), the employer may hold the employee liable for damages under Article 300. This could include costs incurred for recruitment or lost productivity, though proving actual damages is necessary in court.

Effects of Non-Compliance

Failure to provide the required notice does not invalidate the resignation but may result in civil liability. The Supreme Court, in cases like Saudi Arabian Airlines v. Rebesencio (G.R. No. 198587, 2015), has emphasized that resignation is a voluntary act, and employees cannot be forced to continue working against their will, as this would constitute involuntary servitude prohibited by the Constitution (Article III, Section 18(2)). However, the employee may forfeit certain benefits or face deductions if damages are proven.

Clearance Process

Upon resignation, employees typically undergo a clearance process to settle accounts, return company property, and receive final pay. DOLE Department Order No. 18-02 requires employers to release the final pay within 30 days from the last day of employment, subject to clearance.

Absence Without Official Leave (AWOL)

Definition and Legal Framework

AWOL refers to an employee's unauthorized absence from work without prior approval or valid reason. It is not explicitly defined in the Labor Code but is addressed under the just causes for termination in Article 297 (formerly Article 282), particularly under "gross and habitual neglect of duties" or abandonment of work.

Elements of Abandonment: For AWOL to justify dismissal, jurisprudence requires two elements, as established in Tan Brothers Corporation v. Escudero (G.R. No. 188711, 2013):
1. Failure to Report Without Valid Justification: The absence must be prolonged and without notice.
2. Clear Intention to Sever Employment: This is inferred from overt acts, such as not returning despite notices or seeking other employment.

Mere absence does not automatically constitute abandonment; it must be coupled with intent not to return.

Procedural Due Process: Employers must observe twin-notice rule under DOLE Department Order No. 147-15:
- First Notice: A return-to-work order sent to the employee's last known address, giving a reasonable period (at least five days) to explain the absence.
- Second Notice: If no response or unsatisfactory explanation, a notice of termination.

Failure to follow this process renders the dismissal illegal, entitling the employee to reinstatement and backwages (Article 294).

Distinction from Resignation

AWOL often intersects with resignation when an employee stops reporting after submitting a notice but before the effective date, or without notice at all. In such cases, if the absence does not meet abandonment criteria, it may be treated as improper resignation rather than a ground for dismissal. The Supreme Court in Ethelwoldo R. Eusebio v. Mitsubishi Motors Phils. Corp. (G.R. No. 182547, 2011) clarified that sporadic absences do not equate to abandonment if there's no intent to resign.

Consequences

Dismissal: Valid AWOL leading to abandonment allows termination without separation pay.
Benefits: Employees dismissed for AWOL forfeit unused vacation/sick leaves but are entitled to prorated 13th-month pay and other accrued benefits.
Criminal Aspects: Prolonged AWOL without intent to return may lead to estafa charges if advances or company property are involved, though rare in practice.

Withheld Salary Under Philippine Labor Law

General Prohibition

Article 116 of the Labor Code prohibits employers from withholding any amount from an employee's wages except as provided by law or with the employee's written consent. This ensures employees receive their full compensation promptly, protecting against exploitation.

Definition of Wages: Under Article 97(f), wages include remuneration for services rendered, excluding allowances or profit-sharing.

Exceptions to Withholding

Withholding is permissible only in specific cases:

Legal Deductions:
- Income taxes, SSS, PhilHealth, Pag-IBIG contributions (Republic Act No. 9679, 11223, etc.).
- Union dues with check-off authorization (Article 241).
- Debts to the employer, such as salary loans or cash advances, with written agreement (Article 116).
Damages from Employee Fault: Under Article 117, deductions for loss or damage to tools/materials if due to employee negligence, after due process.
Court Orders: Garnishments for child support, alimony, or judgments.
Final Pay Adjustments: Upon resignation or termination, adjustments for overpayments, unreturned property, or accountable forms, but only after clearance.

In resignation contexts, employers sometimes withhold final pay citing incomplete notice or pending clearances. However, DOLE guidelines (e.g., Labor Advisory No. 06-20) mandate release of final pay within 30 days, and withholding beyond this is illegal unless justified.

Intersection with Resignation and AWOL

In Resignation: If an employee resigns without notice, the employer may deduct damages from final pay, but must prove them. Withholding the entire salary is prohibited; only proportional deductions are allowed. In BMG Records (Phils.), Inc. v. Aparecio (G.R. No. 153290, 2007), the Court ruled that withholding final pay as "liquidated damages" requires contractual basis and reasonableness.
In AWOL: For employees on AWOL, salaries for absent days are not payable (no work, no pay principle under Article 82). If dismissed for abandonment, final pay (accrued benefits minus deductions) must still be released. Indefinite withholding violates Article 116 and may lead to illegal suspension of payment claims before the National Labor Relations Commission (NLRC).
Illegal Withholding Remedies: Employees can file complaints with DOLE for inspection or NLRC for money claims. Penalties include full backwages, damages, and attorney's fees (Article 294). Criminal liability under Article 116 includes fines or imprisonment.

Special Considerations

13th-Month Pay: Mandated by Presidential Decree No. 851, prorated upon resignation. Cannot be withheld.
Service Incentive Leave (SIL): Under Article 95, five days per year, commutable to cash upon separation.
Backwages in Illegal Dismissal: If AWOL dismissal is deemed illegal, full backwages from dismissal to reinstatement.
COVID-19 and Force Majeure: During pandemics, DOLE advisories allowed flexible arrangements but not arbitrary withholding.

Interrelations and Practical Implications

Resignation, AWOL, and salary withholding often overlap in disputes:

An employee resigning without notice might be tagged as AWOL, leading to withheld pay. However, if resignation is accepted (even impliedly), AWOL claims fail.
Employers must document all actions to avoid constructive dismissal claims, where withholding pay forces resignation (Article 300).
Jurisprudence like Joey M. Pescador v. Philippine Airlines, Inc. (G.R. No. 181608, 2013) underscores that intent is key in distinguishing resignation from abandonment.

In practice, mediation through DOLE's Single Entry Approach (SEnA) under Department Order No. 107-10 resolves many such issues amicably.

Conclusion

Philippine labor law prioritizes voluntariness in resignation while imposing notice requirements to protect employers. AWOL serves as a disciplinary tool but demands strict procedural adherence to avoid illegal dismissal. Salary withholding is tightly regulated to safeguard employee earnings, with exceptions limited to legal or consensual grounds. Employers and employees alike must navigate these provisions carefully, consulting DOLE or legal counsel to prevent litigation. Understanding these elements fosters fair workplaces, aligning with the constitutional mandate for social justice and protection of labor (Article XIII, Section 3).