The Inclusion of the Notice Period in Work Experience under Philippine Labor Law

Scope & Purpose This article explains—exhaustively and in plain English—how the 30-day notice period mandated by Philippine labor statutes and jurisprudence figures into an employee’s “work experience” or “length of service.” It integrates statutory text, Department of Labor and Employment (DOLE) issuances, Bureau of Internal Revenue (BIR) practice, Social Security System (SSS) regulations, and leading Supreme Court decisions through June 2024. While every effort is made to be precise, this is general information, not legal advice.

1. Statutory Foundation

Provision	Core Rule	Implication for Notice Period
Art. 300 [285] Labor Code — Employee-Initiated Resignation	Employee must give at least 30 days written notice.	The employee remains actively employed during this countdown.
Art. 298 [283] Labor Code — Employer-Initiated Termination for Authorized Causes	Employer must give 30 days written notice to both employee and DOLE.	The employee is generally retained on the rolls (unless payroll-off) until the lapse of 30 days.
Art. 301 [286] — Bona Fide Suspension of Business Operations	Employment is not deemed terminated during suspension not exceeding six months.	By analogy, the law treats certain “garden leave” arrangements as continuing employment.

Key Take-away: Philippine statutes treat the notice period—whether triggered by resignation or authorized cause—as part of continuous employment, not a limbo stage.

2. Supreme Court & NLRC Jurisprudence

Case	G.R. No.	Holding Relevant to Service Length
Jaka Food Processing v. Pacot (March 10 2005)	151378	Upheld separation pay computed up to the last day of the 30-day notice required under Art. 298, confirming notice days form part of tenure.
Serrano v. NLRC & Isetann (Aug 26 1998)	117040	Affirmed that for fixed-term contracts cut short, compensation extends through the unexpired portion, illustrating that obligated service time—even if “idle”—is counted.
Aliling v. FELMU (April 10 2013)	185829	For probationary workers who resign with proper notice, employment length is reckoned including the 30-day period, crucial when the period tips service over six months (thereby converting them to regular status).

Rule of thumb from jurisprudence: If the employee remains ready, willing, and able to work—or is barred from working solely by management prerogative—the period counts toward experience.

3. Practical Consequences

3.1 Certification & Résumé Crediting

Certificate of Employment (COE): DOLE Department Advisory No. 06-20 (2010) obliges employers to indicate inclusive dates. The “end date” should be the last day of work or notice period, whichever is later.
HR Best Practice: State “June 1 2023 – May 31 2025 (inclusive of 30-day notice period)” to avoid later disputes.

3.2 Statutory Monetary Benefits

Benefit	Is Notice Period Credited?	Basis
13th-Month Pay	Yes. Basic salary earned during notice accrues proportionately.	PD 851 & its IRR.
Service Incentive Leave (SIL)	Yes. SIL accrues until the final effectivity date.	Art. 298, DOLE Handbook 2020.
Retirement Pay (Art. 302 [287])	Yes, if the notice period causes the employee to hit minimum tenure (5 yrs under statute or lower under CBA).
SSS, PhilHealth, Pag-IBIG Contributions	Mandatory payroll deductions continue, unless employer places worker on no-pay garden leave, in which case employer must still remit minimum SSS contributions under CR 10-2019.

3.3 Tax & Payroll Compliance

BIR Form 2316 (Annual Tax Withheld): Gross compensation should capture income earned through the last compensable notice day.
Final Pay: Employers may offset unreturned property or training costs but cannot deduct salary corresponding to the notice period the employee actually served.

3.4 Probationary & Project Employment

Probationary Status: A probationary employee who resigns effective 30 days hence may exceed the statutory 6-month threshold, thus attaining regular status on day 181 and enjoying security of tenure during the balance of the notice.
Project & Seasonal Workers: If the project completion date precedes the 30-day notice expiry, management may accept shorter notice; otherwise, service counts until the earlier of (a) project end or (b) notice expiry.

4. Employer Options & Constraints

4.1 Waiver or Shortening of Notice

Employer Prerogative: Management may waive or abbreviate the 30-day period (e.g., “effective immediately”). Once waived, the unserved days do not count toward tenure because the employment bond is mutually severed.
Garden Leave: Employers sometimes keep employees on payroll but bar access to premises. Garden leave is still paid employment, so the period counts toward experience.

4.2 Forced Offset Against Leave Credits

Allowed only if stipulated in company policy/CBA and with the employee’s consent. Otherwise, employer must pay both salary and the cash value of leave credits.

4.3 Clearance & Final Pay Deadlines

DOLE Labor Advisory 06-2020: Final pay—including amounts earned during the notice period—must be released within 30 calendar days from effectivity of resignation/termination.

5. Employee Strategies & Considerations

Negotiating Early Release: If a new employer requires an earlier start, request a written waiver from the current employer to avoid AWOL marking.
Service Continuity for Government Loans: SSS salary-loan eligibility considers number of posted contributions; ensuring contributions during notice maximizes benefits.
Proof for Overseas Applications: Many POEA/DMW agencies require COEs with exact end dates; insist on inclusion of the notice period to reflect full tenure.

6. Gray Areas & Unsettled Issues

Issue	Current Status	Practical Tip
Unpaid Notice due to Business Closure	Some employers cease operations immediately after serving Art. 298 notice and stop paying salaries; legality depends on proof of bona fide closure (see Jaka).	Secure written undertaking for separation pay prorated to notice.
Voluntary Resignation During Preventive Suspension	Preventive suspension days are generally not compensated. If employee resigns and serves notice concurrently, only days after suspension counts for tenure-based benefits.
Remote Notice Service	E-mail notice is valid if acknowledged; service period runs from date of receipt. Keep electronic timestamps.

7. Checklist for HR & Employees

Step	Employer To-Do	Employee To-Do
1. Written Notice	Acknowledge receipt; stamp date.	Send dated, signed notice; keep copy.
2. Confirmation Letter	State last working day = notice expiry.	Clarify any offsets or waived days.
3. Payroll Processing	Include notice days in cut-off; compute 13th-month, leave, prorated bonuses.	Verify payslip; flag missing benefits.
4. Statutory Remittances	Remit SSS/PhilHealth/Pag-IBIG until final pay run.	Check online accounts for posted contributions.
5. COE Issuance (within 3 days)	Indicate inclusive dates and position.	Ensure end date covers notice period.
6. Release Final Pay	Within 30 days from effectivity.	Secure quitclaim only upon full payment.

8. Conclusion

Under Philippine labor law, the 30-day statutory notice—whether prompted by the worker (resignation) or the employer (authorized cause)—is integral to the employment relationship. Salaries, statutory benefits, length-of-service computations, and résumé credit must all include the notice period unless the employer expressly waives service and releases the employee earlier. Both HR practitioners and employees should internalize this rule to avoid disputes over tenure-based benefits, clearance, and employment records.

Updated as of June 2024 Philippine jurisprudence. For case-specific advice, consult a Philippine labor law specialist.