In the Philippine jurisdiction, the cessation of an employment relationship—whether through voluntary resignation or the early termination of a fixed-term contract—does not absolve the employer of financial obligations. The Labor Code of the Philippines and various implementing rules protect the "final pay" or "back pay" of an employee.

Understanding these entitlements requires a distinction between mandatory statutory benefits and discretionary or contractual bonuses.

1. Mandatory Final Pay Components

Regardless of the reason for leaving (unless due to serious misconduct that caused actual financial loss to the employer, though even then, earned wages are protected), an employee is generally entitled to the following:

Pro-rated 13th Month Pay: Under Presidential Decree No. 851, all rank-and-file employees are entitled to a 13th-month pay provided they worked for at least one month during the calendar year. When resigning, this is calculated as:
Unused Service Incentive Leave (SIL): The Labor Code mandates five days of paid leave for every employee who has rendered at least one year of service. Unlike vacation leaves in the private sector (which depend on company policy), unused SIL must be converted to cash upon resignation or termination.
Unpaid Salaries: Any wages earned for days worked but not yet paid up to the last day of actual service.
Pro-rated Other Benefits: Any other incentives stipulated in the employment contract that have already been "earned" but not yet disbursed.

2. Resignation vs. Termination: Key Legal Nuances

Voluntary Resignation

Under Article 300 [285] of the Labor Code, an employee may terminate the relationship without just cause by serving a written notice at least one month (30 days) in advance.

Failure to Render Notice: If an employee leaves immediately without notice (and without a valid "just cause" like inhuman treatment or commission of a crime by the employer), they may be held liable for damages. However, the employer cannot legally withhold the 13th-month pay or earned wages as a penalty, though they may offset proven damages against the final pay.
Separation Pay: In cases of voluntary resignation, the employer is not legally required to pay separation pay unless it is stipulated in the Employment Contract or is an established company policy (Company Practice).

Termination of Fixed-Term Contracts (Early Termination)

If an employment contract has a specific duration (e.g., a 1-year project) and the employer terminates it early without a "just cause" (as defined in Art. 297) or "authorized cause" (as defined in Art. 298), the employee may be entitled to:

Salaries for the Unexpired Portion: Philippine jurisprudence often dictates that an illegally dismissed fixed-term employee is entitled to the salaries they would have earned for the remainder of the contract.

3. Tax Treatment and Deductions

The Bureau of Internal Revenue (BIR) and the Department of Labor and Employment (DOLE) provide specific guidelines on the processing of final pay:

Tax Refunds: If the total tax withheld from the employee throughout the year exceeds the actual tax due (common when leaving mid-year), the excess must be returned as part of the final pay.
Allowable Deductions: Employers may only deduct amounts authorized by law (SSS, PhilHealth, Pag-IBIG contributions) or those authorized in writing by the employee (e.g., company loans, unreturned equipment).
Clearance Process: While an employer can require a "clearance" process to ensure company property is returned, they cannot use an incomplete clearance as a reason to permanently withhold final pay.

4. Timeline for Release

According to DOLE Labor Advisory No. 06, Series of 2020, the final pay of a resigned or terminated employee must be released within thirty (30) days from the date of separation or termination of employment, unless a more favorable company policy or Individual/Collective Bargaining Agreement exists.

5. Summary Table of Entitlements

Benefit	Is it Mandatory?	Condition
Unpaid Salary	Yes	For actual days worked.
13th Month Pay	Yes	Pro-rated based on months served in the year.
SIL Conversion	Yes	For employees with at least 1 year of service.
Separation Pay	No	Only for authorized causes (e.g., redundancy) or if in contract.
Tax Refund	Yes	If there is excess withholding tax.
Certificate of Employment	Yes	Must be issued within 3 days of request.

Legal Note: Employees are entitled to a Certificate of Employment regardless of the nature of their exit. This document must state the period of employment, the type of work performed, and the date of termination.