Here’s a practical, everything-you-need explainer on the paid status of the 30-day resignation notice period in the Philippines—how it works, what you’re owed, when it can be shortened or waived, and the common payroll/HR pitfalls. You asked me not to search, so this is based on the Labor Code (renumbered), DOLE practice, and standard HR/litigation handling.
The core rule in one line
If you resign without just cause, you must give written notice at least 30 days before effectivity. During that notice period, you’re still an employee—so you normally work and get paid your regular wages and benefits, subject to the usual timekeeping rules.
Legal basis: Termination by employee (formerly Art. 285; renumbered). The 30-day notice exists to give the employer time to transition your work.
What “paid” means during the notice period
- Status: You remain on the payroll as a regular employee up to your effective resignation date (the “last day”).
- Compensation: You earn your basic pay, allowances, premium pay (if you actually work on covered days), overtime (if authorized and worked), and night differential as applicable.
- Benefits continue: You keep accruing or receiving statutory (e.g., 13th month pro-rata) and company benefits (e.g., HMO) in line with policy cutoffs.
- Attendance rules apply: No work, no pay still governs—if you don’t report or are on unpaid leave, the day is unpaid. If you’re on paid leave (approved VL/SL), it’s paid per policy.
Five common scenarios (and who pays what)
You serve the full 30 days and work as usual
- Paid for all days worked (and approved paid leaves).
- Final pay includes unpaid balances (see “Final pay components” below).
Employer waives the 30-day service and releases you earlier
- The employer can accept immediate effectivity.
- Once released, the employment ends and the employer’s wage obligation stops on the actual release date—unless they place you on paid “garden leave” (see below).
- You owe nothing for the unserved days because the employer waived them.
You request early release; employer agrees to shorten
- The parties may mutually shorten the period. Pay runs only up to the agreed last day.
- Some companies ask for offsets (e.g., consume VL credits) to cover part of the shortened period—valid only with your consent and policy compliance.
You want out immediately; employer does not agree
- If you walk out without just cause and without employer consent, you stop getting paid when you stop working.
- The employer may claim contractual damages/“pay in lieu of notice” only if (a) a clear policy or contract provides for it and (b) any wage deduction is lawful (i.e., with your written authorization or otherwise allowed by law). Otherwise, they should not unilaterally net it from your wages.
Employer tells you to “stay home” during notice (“garden leave”)
- If you are ready, willing, and able to work but the employer instructs you not to report (for business/security reasons) while keeping the resignation date unchanged, the usual practice is to keep you on paid status until your effectivity date (garden leave).
- If the employer ends employment immediately (accepts resignation now), pay stops at that earlier last day.
“Just-cause” resignations (no 30-day notice required)
If you resign for just cause (e.g., serious insult by the employer, inhuman treatment, crime against you or your family, non-payment of wages), you may resign immediately.
- Pay: You’re paid up to your last day worked; no liability for not rendering the notice.
- Separation pay: Still not due (unless provided by CBA/policy/contract).
Can vacation/sick leaves cover the notice?
- Yes, if approved. Paid leaves, if approved during the notice window, count as paid days.
- No unilateral forcing. Employers generally can’t force you to burn paid leaves to “pay for” the notice without your consent, though they may deny leave requests to ensure turnover.
- Offsetting: Some policies allow offsetting VL credits against a shortened notice by agreement.
Fixed-term, project, and probationary employees
- Fixed-term/project: The 30-day rule still guides resignations, but leaving before term end can expose you to contract damages if your early exit breaches a valid fixed-term/project agreement (separate from wages already earned).
- Probationary: The 30-day notice likewise applies, but many company handbooks allow shorter notice (e.g., 15 days) if clearly stipulated and not contrary to law/public policy.
Final pay components upon resignation (typical)
Your final pay (usually targeted within about 30 days from separation) commonly includes:
- Last salary up to and including your last day (worked/paid-leave days only).
- Pro-rated 13th month pay.
- Conversion of unused, convertible leaves (per policy/CBA).
- Tax refund (if applicable after year-to-date recompute).
- Other earned benefits (e.g., incentives already vested/earned under policy terms).
- Less: lawful deductions (statutory contributions, taxes, company loans/advances with written authorization, accountable shortages after due process, and any contractually agreed pay-in-lieu/penalties, if valid).
Important: Employers should not withhold final pay indefinitely just because clearance is pending; they may offset accountable items duly established, but wages/benefits already earned must be released within a reasonable period.
13 quick FAQs
1) Is the 30-day notice itself “paid leave”? No. It’s not a leave; it’s a period of continued employment. You’re paid if you work or use approved paid leave.
2) Can the company refuse to pay me during notice if they don’t like I’m leaving? No. If you’re reporting as scheduled (or on paid garden leave), you’re on paid status like any employee.
3) Can the employer make me leave immediately and stop paying the remaining days? Yes—by accepting your resignation effective immediately. Then your last day is today, and pay stops today. (They cannot keep you employed and unpaid.)
4) If I walk out with no notice, can they deduct 30 days’ pay from my last salary? Only if there’s a clear, lawful basis (contract/policy) and a valid deduction mechanism (typically your written authorization). Otherwise, they should pursue any claim separately, not self-help via wages.
5) Can they put me on “garden leave”? Yes, as a business choice. Best practice is to keep it paid until your effective date; otherwise, end the employment earlier.
6) Does overtime/holiday pay still apply during notice? Yes, if you actually render qualifying work and it’s authorized/recorded.
7) Can I take leaves during notice? Yes, subject to approval. Companies commonly limit long absences to ensure turnover.
8) I have negative VL balance—can they deduct it from my last pay? If a written policy/authorization allows recovery of paid leave you did not actually earn (e.g., advanced credits), recovery is typical.
9) Do I get separation pay if I resign? Generally no, unless a CBA/company policy/contract grants it or you qualify for a retirement plan.
10) Does the 30-day rule apply to domestic workers (kasambahay)? Domestic workers have their own law (Kasambahay Law). As a rule of thumb, a resignation notice still applies; specific periods/benefits may differ by statute/regulation.
11) Can my employer extend the 30 days? Not unilaterally. You may agree to extend (e.g., to finish a handover). Without agreement, your resignation takes effect on the date you set (provided you gave at least 30 days’ notice).
12) Is employer “acceptance” required for my resignation to be valid? No. Resignation is a unilateral right; with the proper notice, it takes effect on your stated date. Acceptance mainly matters if you want an earlier release.
13) What if I resign for just cause (e.g., non-payment of wages)? You may quit immediately and be paid up to your last day—no 30-day service and no penalty.
Clean handover + payroll checklist (use this to avoid disputes)
For the employee
- Give dated written notice (keep proof of receipt).
- Propose a handover plan and list of unreturned assets.
- Clarify last working day vs. effectivity date (if on garden leave).
- Keep copies of time records, approvals, and any mutual waiver/shortening.
For the employer
- Confirm in writing the last day and whether there’s garden leave or shortened notice.
- Specify pay status through the last day; approve/deny leaves clearly.
- Process final pay: last wages, 13th month pro-rata, convertible VL, tax recompute; deduct only what’s lawful/authorized.
- Issue COE upon request and clearance promptly; avoid blanket withholding of wages.
Bottom line
- The 30-day resignation notice isn’t a special paid leave—it’s continued employment.
- Paid if you work (or are on paid garden leave/approved paid leave); unpaid for no-work days unless policy says otherwise.
- Employers may waive or shorten the period (then pay stops at the earlier last day), but cannot keep you employed and unpaid.
- Deductions for unserved notice or damages require a lawful basis and, typically, your written consent.
If you want, give me your specific timeline (date you filed notice, proposed last day, any leave plans, and what HR said), and I’ll draft exact wording for: (a) a mutual early-release memo, or (b) a garden-leave letter that locks in your paid status through your effectivity date.