Legality of Forcing an Employee to Resign Because of an Extended Leave
Philippine Labour‑Law Perspective (updated July 2025)
This article is for educational purposes only and does not constitute legal advice. Where rights or liabilities are at stake, always consult a qualified Philippine labor‑law practitioner.
1. Core Principles
| Principle | Statutory / Jurisprudential Source | Practical Effect |
|---|---|---|
| Security of tenure | 1987 Constitution, Art. XIII §3; Labor Code (LC) Art. 294 [formerly Art. 279] | No employee may be dismissed except for a just or authorized cause and with due process. |
| Voluntary resignation | LC Art. 300 (formerly 285); Mobile Concrete (GR 151147, 15 Aug 2017) | Must be a free, informed, and spontaneous act of the employee; burden on employer to prove voluntariness if contested. |
| Constructive dismissal | G.R. No. 228222, PLDT v. Tiamson (2021); JAKA (GR 151378, 28 Mar 2005) | Employer imposes acts that render continued employment impossible, unreasonable, or unlikely, forcing the worker to quit; treated as illegal dismissal. |
| Management prerogative | Long‑standing doctrine; Abbott Laboratories v. Alcaraz (GR 192571, 23 July 2013) | Must be exercised in good faith and within law and contract; cannot override constitutional rights. |
2. Types of Leave and Their Protection
Statutory Paid Leaves
Leave Statute Duration / Key Points Service Incentive Leave (SIL) LC Art. 95 5 days/year after 1 year of service. Maternity RA 11210 (105‑Day EML) 105 days + 15 days (solo parent) + 30‑day extension without pay. Paternity RA 8187 7 days. Parental leave for Solo Parents RA 8972 7 days. VAWC leave RA 9262 10 days. Special Leave for Women (Gynecological) RA 9710 (Magna Carta for Women) Up to 60 days. Statutory Unpaid Leaves
- Rehabilitation leave (RA 4670 for public‑school teachers)
- PWD leave credit (RA 10754), etc.
Company‑Granted Leaves Policies in handbooks or CBAs may provide additional vacation or sick leave. These become part of the employment contract and enjoy contractual protection.
Extended Leave “Extended” means any continuous absence beyond the statutory or company‑granted entitlement, usually unpaid and subject to employer approval. Employees on approved extended leave retain employee status. Their absence is not abandonment.
3. Employer Options When Leave Becomes Prolonged
| Scenario | Proper Action | Key Compliance Points |
|---|---|---|
| Employee still within approved leave | Wait for expiry; engage in interactive dialogue for return‐to‐work or accommodation. | No adverse action may be taken. |
| Employee requests further extension | Assess medical evidence; may approve, deny, or offer alternative work. | Denial must be reasonable; forcing resignation is not a valid option. |
| Unauthorized extended absence | Treat as possible absenteeism/abandonment. | Must satisfy: (a) absence without valid reason and (b) clear intention to sever employment. Issue notice to explain (NTE). |
| Employee afflicted with disease | LC Art. 299 [285] (disease) | May dismiss only upon: (1) certification by competent public health authority that disease is incurable within six months and (2) payment of separation pay. |
Bottom line: The law recognizes only dismissal (with cause) or resignation (voluntary). Forcing the second is tantamount to the first without due process—illegal.
4. Forced Resignation as Constructive Dismissal
Elements (Supreme Court test):
- There is an act of clear discrimination, insensibility, or disdain by the employer;
- The act makes continued employment impossible, unreasonable, or unlikely;
- Employee had no real option but to quit.
Indicators specific to extended‑leave cases
- Employer withholds approval of medically required leave yet refuses alternative accommodations.
- Employee is told to “just resign so we can hire a replacement.”
- Threats of disciplinary action absent factual basis.
- Acceptance of resignation letter pre‑drafted by HR or mother company.
Key Cases
| Case (Year) | Facts | Ruling |
|---|---|---|
| PLDT v. Tiamson (2021) | Employee on extended sick leave given option to resign or be fired. | SC: Constructive dismissal; awarded reinstatement, backwages, damages. |
| University of Pangasinan v. Fernandez (2023) | Professor on study leave pressured to resign when leave ran beyond schedule. | SC: Employer liable; study leave an agreed benefit. |
| Jarcia Machine Shop v. NLRC (2019) | Absence for surgery; employer declared abandonment after 1 month. | SC: Abandonment requires clear intent to sever; here, none. Illegal dismissal. |
| Abbott Laboratories v. Alcaraz (2013) | Not leave‐related but clarifies that even contractual employees enjoy due‑process safeguards when termination is employer‑initiated. |
5. Due‑Process Checklist for Employers (Twin‑Notice Rule)
First Notice – Charge
- State acts complained of (e.g., “unauthorized absence since __”).
- Give at least 5 calendar days to submit written explanation.
Opportunity to be Heard
- Formal hearing optional but recommended where facts are contested.
Second Notice – Decision
- Finds employee guilty and states penalty or dismisses the charge.
Separation Pay / Benefits
- Due where cause is authorized (redundancy, disease, etc.).
- Not owed for dismissal on just cause except where CBA or policy grants it.
Failure at any step converts dismissal into illegal dismissal.
6. Remedies Available to the Employee
| Remedy | Statutory Basis | Notes |
|---|---|---|
| Reinstatement | LC Art. 294 | Without loss of seniority; if impracticable, separation pay in lieu. |
| Full backwages | Same | From dismissal to actual reinstatement / finality of decision. |
| Moral & exemplary damages | Civil Code Art. 2224–2229 | Awarded where employer acted in bad faith or oppressive manner. |
| Attorney’s fees | Art. 2208 Civil Code | Usually 10% of monetary award. |
| Nominal damages | Jaka doctrine | If dismissal justified but due process absent (₱30 000 baseline). |
7. Employer Defenses and Best Practices
- Document everything: leave applications, approvals, medical certificates, communications.
- Progressive discipline: written warnings before escalation.
- Offer reasonable accommodation: part‑time return, light duties, WFH.
- Rely on medical opinion: Certification must be by public health authority (e.g., government physician) for Art. 299 dismissal.
- Avoid “quitclaim bullying”: Any waiver signed under pressure is invalid and can itself evidence constructive dismissal.
8. Special Sectors
- Public Sector: Civil Service Commission (CSC) rules govern, but the security‑of‑tenure guarantee is even stronger. Forced resignation may also constitute administrative offense (Grave Misconduct).
- Seafarers / OFWs: POEA standard contracts incorporate similar due‑process and medical‑repatriation rules; repatriation for medical reasons cannot justify forced resignation.
9. Criminal & Administrative Exposure
- Art. 288 LC (Interference with right to self‑organization) occasionally invoked when resignation pressures coincide with union activities.
- Art. 302 LC (Unfair labor practice) where discrimination found.
- DOLE can issue compliance orders and impose fines under RA 11058 (OSH Law) if the forced resignation relates to workplace injury or illness.
10. Practical Guidance Checklist
| For Employers | For Employees |
|---|---|
| ✅ Keep an updated, written leave policy aligned with statutory minima. ✅ Engage in interactive dialogue—ask what accommodation is needed. ✅ Explore temporary replacement, job‑sharing, or floating status (Art. 301) instead of resignation requests. ✅ Issue clear, timely notices if absence becomes unauthorized. |
✅ File leave forms and secure approvals in writing. ✅ Submit medical certificates promptly; update employer on recovery timeline. ✅ Document any threat or pressure to resign (emails, messages). ✅ If coerced, lodge complaint at DOLE‑NLRC within 4 years (prescriptive period for illegal dismissal). |
11. Conclusion
Under Philippine law, forcing an employee to resign because of an extended leave is almost invariably illegal. The employer’s legitimate concerns about manpower shortages or business continuity must be addressed through the procedures laid down in the Labor Code and DOLE issuances—not through coercion. Once resignation ceases to be a voluntary act, it transmutes into constructive dismissal, exposing the employer to reinstatement orders, hefty monetary awards, and even administrative sanctions.
In short, resignation is a right, not a weapon. Both employers and employees should handle extended‑leave situations with transparency, compassion, and strict adherence to due process.