Notarized Quitclaim After Resignation: Who Secures and Pays? (Philippines)

Overview

When an employee resigns in the Philippines, many employers ask them to sign a Quitclaim, Release, and Waiver (“quitclaim”). This document typically states that the employee has received all final pay and benefits due, and in exchange releases the employer from further monetary claims arising from the employment. Notarization is commonly requested to convert the document into a public instrument, which carries greater evidentiary weight.

This article explains, in Philippine context: whether quitclaims are required, what makes them valid, who usually prepares and notarizes them, who pays the notarial and related costs, the risks and limits of quitclaims, best-practice steps for both sides, and a practical template you can adapt.

Are quitclaims required by law?

No statute requires a quitclaim upon resignation. Employers often use them as part of a standard clearance process to document that (a) the employee has returned company property and (b) all final pay/benefits have been settled. A resignation remains valid even without a quitclaim; the document mostly protects against later disputes about money claims.

What makes a quitclaim valid?

Philippine jurisprudence recognizes quitclaims but also closely scrutinizes them. Courts generally uphold a quitclaim when:

Voluntary consent — it was signed freely, without fraud, intimidation, or undue pressure.
Reasonable consideration — the employee received a fair and reasonable sum actually due (e.g., unpaid salary, leave conversion, proportionate 13th month, other accrued benefits); token amounts are suspect.
Clear terms — waiver language is clear, specific to employment-related monetary claims, and does not waive future or non-waivable rights (e.g., statutory minimum standards).
Informed execution — the employee had enough time and opportunity to read, ask questions, and seek advice.

Courts strike down quitclaims if any of the above elements are missing—particularly where amounts are unconscionably low or consent is vitiated. Notarization helps with formality and presumption of due execution, but notarization alone does not cure defects like coercion or lack of consideration.

Is notarization required?

Not required, but recommended. A notarized quitclaim:

becomes a public document, enjoying a presumption of regularity and authenticity;
is generally easier to present in proceedings (e.g., before the NLRC or courts).

That said, an unnotarized quitclaim can still be valid if properly executed; it just carries less evidentiary weight.

Who prepares the quitclaim?

Typically the employer. HR or legal drafts a standard form tailored to company policies and the departing employee’s actual entitlements. Employees are free to request revisions (e.g., to correct amounts, add a schedule of payments, or narrow the scope of the waiver).

If an employee resigns without a company form or prefers their own terms, they may prepare a draft; however, most employers will insist on their standard template for consistency.

Who secures notarization?

Common practice: The employer coordinates notarization (in-house or via a partner notary) as part of clearance and release of final pay.
Alternative practice: The employee may be asked to appear before a notary of their choice and bring back the notarized original.

There is no legal rule dictating who must secure notarization. It’s a matter of company policy or agreement. What matters is that the signatory appears before the notary with proper identification and signs in the notary’s presence (or acknowledges a prior signature, depending on the notary’s procedure).

Who pays the notarial (and related) fees?

Again, there is no mandatory rule. Prevailing practice is:

Employer shoulders the notarial fee and any small documentary costs when the quitclaim is employer-initiated and required for HR release. Many companies treat it as a cost of doing business/documentation.
Employee shoulders the fee if the employee independently opts to notarize (e.g., using their preferred notary, outside normal HR process) or if company policy explicitly assigns the cost to the employee.
Hybrid arrangements occur (e.g., employer pays the notary fee; employee pays for photocopies, ID affidavits, or special requests).

Practical tip: The party requiring notarization usually pays. If the employer makes notarization a condition for releasing the final pay, it is good practice for the employer to shoulder the fee.

Typical out-of-pocket items (vary by locality and notary): notarial fee, documentary stamp for acknowledgment, and minimal admin costs. Rates can differ widely; ask HR or the notary for the current schedule.

Can an employer withhold final pay until a quitclaim is signed?

Employers may coordinate final pay with a clearance and documentation process (which can include a quitclaim). However, they cannot use a quitclaim to extort a waiver against legitimate, unpaid statutory or contractual benefits, nor may they delay unreasonably the release of final pay. A quitclaim obtained by coercion or by withholding clearly due wages is vulnerable to challenge.

What a fair quitclaim should include

Parties and dates — employee name, employer entity, last day of work, date of execution.
Itemized consideration — a clear breakdown of amounts paid (salary, leave conversion, 13th-month proportion, incentives already earned, other accrued benefits, less lawful deductions).
Acknowledgment of receipt — indicate the mode/date of payment; for installments, attach a payment schedule and release the waiver proportionately upon each tranche.
Scope of waiver — limit to employment-related monetary claims up to the execution date; avoid blanket language that purports to waive unrelated rights or future claims.
Carve-outs — exclude (or expressly preserve) claims that cannot be waived (e.g., statutory minimum standards) and clarify that latent claims based on unknown fraud are not waived.
Return of property & confidentiality — confirm return (or payment in lieu) of company assets; restate confidentiality/IP obligations and reasonable post-employment duties (no restraints beyond what is lawful).
No admission of liability — standard mutual non-admission clause.
Notarization block — acknowledgment page with correct details for the notary.

Red flags that can invalidate a quitclaim

Grossly inadequate consideration (e.g., waiving substantial claims for a token amount).
Coercion or undue pressure (e.g., threats, forced signing in haste, isolation from counsel).
Ambiguous or overbroad waiver (e.g., “waive all rights forever for any cause known or unknown”).
Misrepresentation (e.g., misstating amounts due or hiding material facts).
Procedural defects in notarization (e.g., no personal appearance, lack of competent proof of identity).

Best practices

For Employers

Prepare a clean, specific, and balanced form. List the consideration item by item; avoid blanket waivers.
Time the signing properly. Secure signatures upon or after confirming the final pay computation. If paying by tranches, align the scope of release with each tranche.
Handle notarization logistics. If you require a notarized quitclaim, arrange and pay for it; advise the employee of schedules, IDs needed, and fees covered.
Keep proof. Retain copies of the signed quitclaim, payroll proofs, clearance forms, and emails.

For Employees

Ask for the computation. Verify every line item and lawful deductions; request supporting records if needed.
Negotiate unclear points. Add a payment schedule, carve-outs, or notes acknowledging any pending items.
Read before you sign. No rushing; you may consult a lawyer or labor officer. If something feels off, say so in writing and request time to review.
Attend notarization with valid ID. Keep your original and a certified copy.

Frequently asked questions

Q: Is a photocopy of a notarized quitclaim enough for HR files? A: HR should keep the original. Employees should retain at least one certified copy.

Q: Can I revoke a quitclaim after signing? A: If it was validly executed with fair consideration, revocation is unlikely. But if there was fraud, coercion, or grossly inadequate consideration, you can challenge it and seek proper relief.

Q: Can a quitclaim waive statutory rights? A: No. Parties cannot contract out of minimum standards. A waiver purporting to do so is ineffective.

Q: Are “mutual” quitclaims advisable? A: A short employer-side assurance (e.g., no claims for ordinary wear-and-tear on returned property) can make the document feel more balanced, though employers often avoid broad mutual waivers.

Practical process map (typical)

Clearance & computation — HR finalizes turnover and computes final pay.
Drafting — Employer prepares the quitclaim with a detailed breakdown.
Review — Employee reviews; clarifies items; agrees on payment timing.
Execution & notarization — Signing before a notary (IDs ready); party requiring notarization usually pays.
Release of pay — Payment made per agreed schedule; receipts retained.

Template (for adaptation)

QUITCLAIM, RELEASE, AND WAIVER I, [Full Name], of legal age, Filipino, with address at [Address], formerly employed by [Employer Registered Name] (“Employer”) as [Position], state:

Resignation and Last Day. I resigned effective [Date].

Consideration. I acknowledge receipt (or commit to receive per Schedule A) of the following amounts, net of lawful deductions:

Unpaid salary (from [date] to [date]): ₱[amount]

Monetized unused leave: ₱[amount]

Proportionate 13th-month pay: ₱[amount]

Other accrued benefits (specify): ₱[amount] Total: ₱[total] (If installments, attach Schedule A with dates/amounts. Each payment releases claims up to that amount.)

Release. In consideration of the foregoing, I release and discharge Employer and its officers from employment-related monetary claims up to the date hereof, to the extent of amounts actually paid. This does not waive: (a) non-waivable statutory rights; (b) claims arising from unknown fraud; or (c) obligations expressly surviving employment (e.g., tax, confidentiality, IP).

Return of Property & Confidentiality. I confirm the return of all company property listed in Schedule B (or payment in lieu) and reaffirm my confidentiality/IP obligations.

No Admission. This is not an admission of liability by any party.

Voluntary Execution. I have read and understood this quitclaim; I signed voluntarily, without force or intimidation, and was given the opportunity to ask questions and seek advice.

Signed this [date] at [city/province], Philippines.

[Employee Name] Valid ID: [Type/Number]

ACKNOWLEDGMENT Republic of the Philippines ) City/Province of _________ ) S.S.

Before me, a Notary Public for and in the above jurisdiction, personally appeared [Employee Name], with [ID Type/No.], known to me and who acknowledged that the foregoing instrument is their free and voluntary act.

WITNESS MY HAND AND NOTARIAL SEAL, this [date] at [place].

Notary Public Doc. No. ____; Page No. ____; Book No. ____; Series of ____.

Note: Replace bracketed fields; attach schedules for payment and property. Keep originals for both parties.

Key takeaways

Not required by law, but widely used for documentation.
Validity rests on voluntariness, fair consideration, and clear scope—not on notarization alone.
Who secures and pays for notarization is a policy or agreement question; best practice: the party requiring notarization (usually the employer) shoulders it.
Transparency and itemization protect both sides; avoid overbroad waivers and rushed signings.

Final word (practical, not legal advice)

Company policies differ, and facts matter. If substantial sums or complex claims are involved (e.g., commissions, equity, separation packages, disputes), consider a brief consult with counsel or a DOLE field office before signing.