I. Executive Summary

Probationary employees in the Philippines may resign due to health reasons. As a default rule, the Labor Code requires 30 days’ written notice for resignations without just cause; immediate effectivity needs the employer’s consent or a legally recognized exception. Clauses imposing liquidated damages (e.g., “training bonds,” early-exit penalties) are not per se illegal but must pass tests of lawfulness, necessity, and reasonableness; courts may reduce or nullify unconscionable penalties. Health-based resignations do not automatically entitle an employee to separation pay (that benefit attaches to certain employer-initiated terminations), but final pay and statutory documents must be released within regulatory timelines, subject only to valid offsets or authorized deductions.

II. Legal Foundations

Probationary Employment
- Maximum period is generally six (6) months from start of work unless a different period is validly set by law or regulation (e.g., apprenticeship) or by real nature of work recognized in jurisprudence.
- The employer must communicate reasonable standards of regularization at the time of engagement; otherwise the employee may be deemed regular as to security of tenure.
- Probationary employees enjoy the same basic rights as regular employees (wages, benefits mandated by law, safe workplace, freedom from discrimination, due process in termination), save that their tenure is contingent on meeting valid standards.
Employee-Initiated Termination (Resignation)
- An employee may resign without just cause by giving the employer written notice at least thirty (30) days in advance.
- An employee may resign without notice if there is just cause attributable to the employer (e.g., serious insult, inhumane treatment, commission of a crime, severe breach of obligations). Health reasons are not expressly listed as just cause for immediate resignation; thus, immediate effectivity typically requires employer waiver of the notice or a mutual agreement.
Employer-Initiated Termination Due to Disease
- A separate regime applies when the employer ends employment because an employee suffers from a disease which cannot be cured within six (6) months and continued employment is prohibited by law or prejudicial to the employee’s health. This requires a competent public health authority’s certification and generally triggers separation pay of at least one-half (½) month pay per year of service.
- This does not automatically apply when the employee resigns due to health.
Liquidated Damages & Penal Clauses (Civil Code)
- Freedom to contract (autonomy of contracts) is limited by law, morals, good customs, public order, and public policy.
- Penal clauses/liquidated damages are enforceable if reasonable and tied to a legitimate interest (e.g., recouping verifiable training costs). Courts may reduce damages if iniquitous or unconscionable; penalties primarily punitive, detached from actual loss, or in restraint of labor are vulnerable.
- Non-compete or restraints linked to health-based exits must be time-, trade-, and territory-reasonable to be enforceable.
Deductions from Wages
- Deductions require legal authorization or the employee’s written consent for a lawful purpose. Unilateral set-off of alleged liquidated damages against final pay, without clear, specific authorization or judgment/conciliation agreement, risks illegality.
Occupational Safety & Health (OSH); Disability Rights
- Employers must ensure safe and healthy work and provide reasonable accommodation for qualified workers with disabilities, consistent with disability and anti-discrimination statutes.
- Health conditions may justify temporary adjustments (light duty, schedule changes) as an alternative to resignation when feasible.

III. Health-Based Resignation by a Probationary Employee

A. Notice and Effectivity

Default: 30-day written notice.
Immediate: Obtain written employer acceptance/waiver of the remaining notice. A detailed medical certificate helps substantiate the request but, by itself, does not waive the statutory notice.
Partial Service: Employer may allow shorter notice (e.g., 7–15 days) or offset using available leave credits by agreement.

B. Medical Documentation (Best Practice)

Medical Certificate indicating diagnosis (or generic description if confidentiality is needed), functional restrictions, and recommended cessation or modification of work.
If disclosure is sensitive, submit limited information adequate to establish the work impact; request that records be handled under need-to-know and data privacy standards.

C. Exploring Alternatives Before Resignation

Light Duty/Modified Work for a defined period.
Leave utilization (company sick leave, SL/VL, unpaid leaves), SSS Sickness Benefit where eligible.
Temporary telework or schedule accommodations (if compatible with probationary evaluation).
If accommodation is not viable, proceed with resignation formalities.

IV. Liquidated Damages & “Training Bonds” in Health-Based Exits

A. When Are These Clauses Valid?

Legitimate Interest: The clause should protect real, quantifiable investments (e.g., training fees, certification exam costs, relocation, airfare, per diems explicitly for training).
Transparency: Costs and amortization schedule (e.g., 12–24 months) should be specified in writing before the expense is incurred.
Pro-Rata: Penalties should decrease over time; flat amounts irrespective of tenure are susceptible to being unconscionable.
No Restraint of Trade: The clause must not bar the employee from practicing a lawful occupation; it should only recoup reasonable costs.
Separate from Wages: Recovery should not bring wages below minimum or violate wage-protection rules.

B. When Are They Vulnerable or Unenforceable?

Punitive sums untethered to actual costs.
Ambiguous or hidden terms; absence of the employee’s informed consent.
Clauses that effectively lock-in labor or coerce continued service without real training provided.
Non-pro-rated penalties despite partial service that already conferred employer benefit.
Health-exit neutrality: If the agreement fails to account for involuntary health conditions (e.g., medically-advised withdrawal), courts may treat strict enforcement as inequitable and reduce the penalty.

C. Collection & Set-off Mechanics

Employer may demand liquidated damages per contract but typically must avoid self-help deductions unless:
1. There is a specific, written authorization by the employee allowing deduction of a definite amount from final pay; or
2. There is a final judgment or duly executed settlement (e.g., DOLE/NCMB/SEnA agreement).
Absent those, the employer should pursue civil recovery. Withholding clearances or statutory documents (e.g., BIR Form 2316, Certificate of Employment) to compel payment is improper.

V. Employer and Employee Checklists

A. For the Employee (Probationary)

Written Resignation stating health reasons and intended effectivity (default 30 days), requesting waiver or shorter notice if needed.
Attach medical certificate (or bring for inspection) indicating work impact; request confidentiality.
Offer to turn over work and company property; propose handover schedule.
Review any training bond/loan; compute pro-rata liability (if any) and request itemized costs with supporting receipts.
Ask HR to confirm final pay release date, COE, and government documents (e.g., BIR 2316).
Keep copies of all communications and acknowledgments.

B. For the Employer (HR/Management)

Acknowledge the resignation; decide on waiver/shortening of notice (consider medical urgency and business continuity).
If enforcing a liquidated-damages clause, provide computation, documentary support, and pro-rata basis; offer installment options where appropriate.
Avoid unauthorized wage deductions; secure specific written consent if setting off from final pay.
Issue COE upon request; release final pay within the prevailing regulatory timeframe (commonly 30 days from separation) unless a lawful hold is justified (e.g., unreturned property with quantified value).
Consider reasonable accommodation proposals where feasible; document why accommodation is or is not practicable (OSH and disability-rights compliance).

VI. Special Topics

Resignation vs. Medical Termination by Employer
- If the employee resigns, separation pay is generally not due (unless company policy, CBA, or practice grants it).
- If the employer terminates due to disease (with proper medical certification and if incurable within six months), statutory separation pay applies.
Probationary Evaluation During Medical Issues
- Attendance and performance affected by a bona fide health condition should be objectively evaluated under pre-communicated standards. Adverse action that disregards medical facts may expose the employer to illegal dismissal or disability-discrimination claims.
Return of Property & Clearances
- Employers may condition clearance on return of property or settlement of accountable items, but must not indefinitely withhold final pay or statutory documents solely to pressure payment of disputed penalties.
Quitclaims/Release
- Valid if voluntary, credible, and for a reasonable consideration, and if the employee fully understands the terms. Courts can invalidate quitclaims obtained through fraud, coercion, or gross inadequacy.
Data Privacy & Medical Confidentiality
- Health data is sensitive personal information; access must be restricted, with retention only as necessary for legal and HR compliance.

VII. Drafting Corner

A. Sample Health-Based Resignation (Probationary)

I hereby tender my resignation effective [date]. I am presently under medical care for a condition that materially affects my ability to perform my duties. In view of this, I respectfully request that the 30-day notice be waived/shortened to [x] days, and I commit to complete a proper handover by [date]. Attached is my medical certificate for HR’s confidential review.

B. Training Bond Clause (Employee-Protective Version)

Specify exact trainings/certifications, actual costs, and an amortization schedule (e.g., 24 months, straight-line).
Provide pro-rata reduction for partial service and exceptions for force majeure, redundancy/closure, and medically necessary resignation supported by certification.
State that any deduction from final pay requires separate written authorization stating the specific amount.

VIII. Frequently Asked Questions

1) Can a probationary employee resign immediately due to health? Yes—if the employer consents to waive/shorten the 30-day notice. Without consent, the statutory 30-day notice generally applies.

2) Do I get separation pay if I resign due to health? Not as a matter of law. Separation pay attaches to certain employer-initiated terminations (e.g., disease, redundancy, closure), unless policy/CBA/company practice grants an ex-gratia amount.

3) My contract has a ₱150,000 “training bond” if I leave within 12 months. Is that valid? It may be enforceable if it reflects real, reasonable, pro-rated costs of training. Courts can reduce or strike an unconscionable penalty, especially if no substantial training occurred or the amount is punitive.

4) Can the company deduct the bond from my last pay without my consent? Generally no—unless you specifically authorized a deduction of a definite amount in writing, or there’s a final judgment/settlement. Otherwise, the employer should pursue collection separately.

5) Must the employer issue my Certificate of Employment (COE) even if there’s a bond dispute? Yes. A COE is a statutory right upon request; it should not be conditioned on payment of a disputed amount.

6) What if my illness/disability can be accommodated? If reasonable accommodation is feasible and does not impose undue hardship, the employer should consider it. If accommodation is not possible, resignation (with or without notice waiver) or employer-initiated termination due to disease (with statutory safeguards) may be explored.

IX. Practical Roadmaps

A. Employee Roadmap (Health-Based Exit)

Obtain medical certificate → 2) Submit written resignation (ask for waiver/shortened notice) → 3) Propose handover plan → 4) Settle accountabilities and return property → 5) Request COE, BIR 2316, and final pay schedule → 6) If a bond is claimed, request itemized proof and pro-rata computation; consider installment or contest via DOLE/SEnA or civil action if unreasonable.

B. Employer Roadmap

Acknowledge resignation and decide on notice waiver → 2) Evaluate accommodations and OSH duties → 3) If enforcing bond, document actual costs and apply pro-rata → 4) Secure specific written authorization for any final-pay deduction → 5) Release COE and final pay on time → 6) If dispute persists, pursue conciliation or civil recovery.

X. Key Takeaways

Probationary status does not diminish the right to resign; the 30-day notice rule still applies unless waived.
Health reasons justify requests for accelerated effectivity, but consent from the employer remains critical absent a statutory exception.
Liquidated damages and training bonds must be reasonable, pro-rated, and supported by real costs; courts may reduce or invalidate penalties that are punitive or coercive.
Employers must respect wage-protection, OSH, and data-privacy rules, and promptly release final pay and COE regardless of bond disputes.
Clear paperwork, fair accommodation, and transparent computations minimize conflict and legal risk for both sides.