Overview

In Philippine employment practice, a Quitclaim and Release (sometimes called a “Release, Waiver and Quitclaim”) is a document signed after an employee’s separation from work. It typically acknowledges receipt of all final pay and benefits, and releases the employer from further claims arising from employment.

One of the most important factual items in a quitclaim is the Employment End Date (also “date of separation” or “last day of employment”). Stating it correctly matters because it affects:

when wages stop accruing
computation of final pay, 13th month, leave conversion, and separation pay (if any)
timing of statutory reports and benefits (SSS/PhilHealth/Pag-IBIG)
deadlines for filing labor claims
whether the quitclaim is viewed as voluntary and informed

A wrong end date can create disputes, weaken the enforceability of the quitclaim, or expose either side to claims of underpayment or misrepresentation.

Legal and Practical Framework (Philippine Context)

1. The Employment End Date is a Fact, Not a Negotiated Term

Even if a quitclaim is a contract, the end date should reflect the actual legal termination of the employment relationship, not a convenient or arbitrary date. It must align with the reason for separation and the records supporting that separation.

2. The Employment Relationship Ends When One of These Happens

In general, employment ends on the effective date of separation, which may be:

the date stated in a resignation and accepted/processed by the employer
the date a termination/dismissal takes effect
the expiration date of a fixed-term contract (if truly fixed-term)
the date of retirement or redundancy effectivity
the last day worked if there is no later legally effective separation date

The key is legal effectivity, not merely physical presence.

Why the Correct End Date Matters in a Quitclaim

A. Final Pay Computations Depend on It

Final pay in the Philippines commonly includes:

unpaid salary up to separation date
pro-rated 13th month pay for the year of separation
cash conversion of unused service incentive leave or company leaves (if convertible)
commissions or incentives earned up to that date
separation pay (if applicable by law or policy)
retirement pay (if applicable)

If the end date is earlier than the actual separation, the employee may lose legally due benefits. If later, the employer may be seen as admitting wage liability beyond the true period.

B. It Anchors “When Claims Accrued”

Labor claims (underpayment, illegal dismissal, benefits) are subject to prescriptive periods. The end date helps determine when causes of action accrue.

C. It Clarifies Status with Government Agencies

Employers report separation to SSS, PhilHealth, and Pag-IBIG. The end date in the quitclaim should match what is reported, or there will be inconsistencies that may hurt credibility later.

How to Determine the Correct Employment End Date: By Separation Scenario

1. Resignation

Correct end date: the effective date of resignation, usually the date stated in the resignation letter after completion (or waiver) of the notice period.

Key points:

If the employee renders the 30-day notice, the effective end date is typically the last day of that notice period.
If the employer accepts an earlier effective date (waives notice), the end date becomes that earlier accepted date.
If the employee stops reporting before the accepted effective date without approval, the employer may treat it as abandonment or AWOL, potentially shifting the legal end date. But this must be supported by due process if treated as termination for cause.

Documents to align: resignation letter, employer acceptance/clearance memo, last payroll cutoff, exit clearance.

2. Termination by Employer (Just Causes / Authorized Causes)

Correct end date: the effectivity date stated in the notice of termination after due process.

Key points:

For just cause (e.g., serious misconduct), the end date is the effectivity after the employee receives the final notice.
For authorized cause (e.g., redundancy, retrenchment), the end date is the effectivity in the authorized-cause notice and should also match the statutory notice to DOLE.

Documents to align: notice to explain / hearing records, final notice of termination, DOLE notice (if authorized cause), payroll and clearance.

3. End of Fixed-Term or Project Employment

Correct end date: the expiry date of the term or project completion date, as stated in the contract or project completion notice.

Key points:

If the employee continues working beyond the term without a valid extension, there may be an argument of regularization; in that case, end date should reflect the lawful separation once clarified.
For project employees, the end date is project completion as communicated to the employee.

Documents to align: fixed-term contract, project assignment contract, project completion memo.

4. Retirement

Correct end date: the retirement effective date under law, company retirement plan, or mutual agreement.

Key points:

Compulsory retirement typically takes effect on the agreed company retirement age.
Optional retirement takes effect on the date agreed by employer and employee.

Documents to align: retirement notice, retirement plan documents, final pay/retirement pay computation.

5. Mutual Separation / Settlement

Correct end date: the date both parties agree employment ends, but it must not contradict reality.

Key points:

This is common in amicable separations.
The agreed end date should still reflect either the last day worked or an agreed future effectivity with paid status.

Documents to align: mutual separation agreement, board/HR approval, last day report.

6. Death of Employee

Correct end date: the date of death, since the employment relationship terminates by operation of law.

Documents to align: death certificate, payroll records.

Special Situations That Cause Confusion

A. Last Day Worked vs. Effectivity Date

Last day worked is the final day the employee actually performed work.
Effectivity date is when employment legally ends.

Sometimes they differ:

Employee is placed on terminal leave or garden leave after last workday.
Employee is on paid leave through the resignation notice period.

In quitclaims, use the legal effectivity date (unless the document explicitly distinguishes both).

B. Terminal Leave / Use of Remaining Leaves

If the employee uses unused leaves to cover remaining notice days:

Employment end date is the last day of the leave period, not the last physical workday.
Leaves are treated as continued employment with pay unless otherwise agreed.

C. Preventive Suspension or Floating Status

Preventive suspension does not end employment. The end date is still the effectivity of termination/resignation later.
Floating status (temporary off-detail) likewise does not end employment unless it reaches a lawful termination point and due process is done.

D. Immediate Resignation

If the resignation is immediate and employer accepts it:

End date is the same day acceptance/effectivity is acknowledged.
If employer doesn’t accept and employee walks out, disputes may arise. The quitclaim should not invent a date that hides the dispute.

E. AWOL / Abandonment

If employer terminates for abandonment:

End date is the effectivity date in the termination notice, not merely the first day of absence.
Employer must show intent to sever ties and due process.

Drafting the End Date Correctly in the Quitclaim

1. Use Clear, Unambiguous Language

Example clause:

“The Employee’s employment with the Company ended on [Month Day, Year], which is the effective date of the Employee’s separation from service.”

Avoid vague phrasing like “sometime in” or “on or about.”

2. Match All Company Records

Before signing, verify the date against:

resignation/termination/retirement notices
HRIS or personnel action forms
last payroll cutoff and attendance
government separation reports
clearance form effectivity

Consistency is key to enforceability.

3. If There’s a Dispute, Say So

If the separation date is contested, don’t force a neat date. Use a neutral framing, e.g.:

“For purposes of this settlement, the parties agree that the Employee’s separation shall be effective [date], without prejudice to their respective positions on prior events.”

This prevents the quitclaim from being interpreted as an admission against interest.

4. Distinguish “Last Day Worked” Where Helpful

If operationally relevant:

“The Employee last reported for work on [date] and the employment relationship ended effective [date].”

This is useful when terminal leave or paid notice applies.

5. Avoid Backdating Without Basis

Backdating to reduce liabilities (or to inflate benefits) can be attacked as:

bad faith
misrepresentation
circumvention of labor standards
evidence that the quitclaim wasn’t voluntarily and knowingly executed

Employee Checklist Before Signing

Confirm separation date in your resignation/termination paperwork.
Recompute final pay based on that date:
- salary through separation
- pro-rated 13th month
- leave conversions
- any separation/retirement pay
Check if you were on terminal leave; if yes, end date is last leave day.
Ensure government employment records align (especially if you need SSS unemployment benefit, etc.).
Ask for correction in writing if the date is wrong.

Employer Checklist Before Issuing a Quitclaim

Verify legal basis of separation and due process completion.
Use the effectivity date in the final notice/resignation acceptance.
Ensure date consistency across HR, payroll, and government reports.
Explain the date to the employee during signing to show voluntariness.
Avoid coercive timing (e.g., “sign now or no pay”), which can invalidate the quitclaim.

Consequences of an Incorrect End Date

If Earlier Than True End Date

underpayment claims
invalid final pay computation
quitclaim may be struck down for unfairness
possible penalties for labor standards violation

If Later Than True End Date

employer may be deemed to admit continued employment
inflated backwages/benefits exposure
inconsistencies with government reports

If Internally Inconsistent

credibility problems in NLRC/DOLE proceedings
quitclaim treated as unreliable or involuntary

Enforceability Notes on Quitclaims in the Philippines

Philippine labor policy is protective of workers. Quitclaims are not automatically invalid, but they are closely scrutinized. Generally, they are more likely to be upheld if:

the employee clearly understood what was signed
consideration (payment) was fair and actually received
there was no force, fraud, or undue pressure
the terms reflect reality (including correct separation date)

A wrong or suspicious end date undermines these factors.

Sample End-Date Provisions

Standard Resignation

“The Employee resigned voluntarily, and the resignation became effective on [date], which shall be the Employee’s last day of employment.”

Authorized Cause Separation

“The Employee’s employment was terminated for authorized cause effective [date], as stated in the Notice of Termination served on the Employee.”

With Terminal Leave

“The Employee last reported physically for work on [date] and thereafter availed of terminal leave. The employment relationship ended effective [date].”

Mutual Separation

“The parties mutually agree that the Employee’s separation from service is effective [date].”

Bottom Line

The correct employment end date in a Philippine quitclaim is the true legal effectivity of separation, supported by employment records and consistent with the method of separation. It should not be invented, casually estimated, or backdated for convenience. When both employer and employee ensure the date is accurate and aligned with final pay computations and official documents, the quitclaim is far more likely to serve its purpose: a clean, fair, and enforceable closure of the employment relationship.

This article is for general informational purposes and does not substitute for advice on a specific case.