Sick-Leave Rights During the 30-Day Resignation Period in the Philippines
(Everything Filipino workers and employers need to know)
1. Statutory Foundations
| Source | Key Provisions Relevant to Resigning Employees |
|---|---|
| Labor Code of the Philippines (PD 442, as amended) | • Art. 300 [285] – An employee may terminate employment by serving a written 30-day advance notice. • Art. 95 – Provides a Service Incentive Leave (SIL) of 5 paid days per year for employees who have rendered at least one year of service (unless already enjoying an equivalent or better leave benefit). |
| Book III, Rule I, Sec. 6, Implementing Rules | Clarifies conversion of unused SIL into cash at the end of the year or upon separation. |
| RA 10395 / DOLE Department Order No. 237-20 (Expanded Maternity Leave) | Separation during pregnancy or maternity leave bars the employer from refusing the statutory benefit; sets the tone that statutory leave entitlements survive resignation if the qualifying event occurred while still employed. |
| RA 9710 (Magna Carta of Women) and RA 7877 (Anti-Sexual Harassment Act) | Not leave laws per se, but underscore the intentional protection of health, safety and well-being—principles DOLE applies when interpreting sick-leave matters. |
| Occupational Safety and Health Standards (as amended by RA 11058) | Imposes a general duty to ensure employees’ health; sick-leave denials that force an unwell resigning worker to report for duty could be construed as a safety violation. |
Bottom line: There is no stand-alone “Sick Leave Law” in the Philippines. Entitlement to paid sick leave during the 30-day resignation window is therefore a combination of:
- Statutory minimum SIL, and
- Company-granted sick-leave programs contained in the Collective Bargaining Agreement (CBA), Employee Handbook, or long-standing company practice (“benefit of habit”).
2. How Sick Leave Works Once You Have Filed Your Resignation
The 30-Day Notice Is Part of Active Service Until the effectivity date stated in the resignation letter, the worker is still an employee in good standing and keeps all benefits, including leave, unless:
- a valid engagement or employment contract says otherwise and the stipulation is not inconsistent with the Labor Code; or
- the worker and employer agreed to a shorter notice under Art. 300, ¶2.
Accrual Continues
- Leave credits—whether SIL or company sick leave—continue to accrue pro-rata through the last working day.
- Example: Company grants 12 days of sick leave annually (1 day per month). If the employee resigns effective 31 July and has served six full months, 7 days should be in the leave bank (Jan → Jul).
Conversion to Cash
- Unused SIL and sick-leave credits are liquidated at the employee’s final pay.
- DOLE’s computation template counts the daily basic wage (not allowances) × unused days.
Usage During the Notice Period
Paid sick leave can be availed of even on any of the last 30 days, provided a medical certificate or credible proof of illness is submitted in the period and manner set by policy.
The employer cannot:
- force the employee to report despite legitimate illness;
- extend the resignation date to “make up” for the absence; or
- deduct the days from final pay when credits are still available.
No “Use It or Lose It” For Statutory Credits
- If an employee keeps unused leave until the end, cash conversion is mandatory; waivers are disallowed as they reduce employment standards (Art. 6, Civil Code; Art. 22, Labor Code).
3. Interaction with:
| Situation | Effect on Sick-Leave Rights During Resignation |
|---|---|
| Running Maternity, Paternity, Solo-Parent or Violence-Against-Women Leave | These special leaves have their own rules. If the qualifying event happens before the resignation takes effect, the worker keeps the full statutory leave even if it extends beyond the separation date (e.g., maternity leave of 105 days). |
| Probationary Employees | Entitled to SIL once one year of service is reached. If resigning before that, any company-granted sick leave still applies. |
| Project / Fixed-Term Employees | If the contract finishes earlier than the 30-day notice (i.e., resignation accepted immediately), leave accrual and usage stop at the earlier separation date. |
| Employees on Preventive Suspension | Notice period runs concurrently. Sick-leave credits may still be converted, but using them while suspended is generally not allowed. |
| “Floating” Employees (Art. 301 [286]) | Still enjoy SIL; may resign and use sick leave during the waiting period provided they give 30-day notice. |
4. Employer’s Right to Deny or Offset
Denial of paid leave is only valid if all leave credits are exhausted and the company policy clearly says absences beyond credits are leave-without-pay.
Offsetting by requiring make-up days after the resignation date is prohibited; the employee is free after the effective date.
If the employer doubts the illness, it may:
- Seek confirmation from its own physician (Art. 299 [284]);
- Require additional documentation;
- Place the leave on pending status. Failure of the employee to comply allows re-classification to LWOP (leave without pay).
5. Jurisprudence Snapshot
| Case | Gist |
|---|---|
| Galang v. Aris (G.R. No. 174173, 23 Jan 2012) | Affirmed that benefits already earned (e.g., accrued leave) form part of wages which must be paid on final demand. |
| Interpacific Transit, Inc. v. CA (G.R. No. 152580, 29 Nov 2005) | Employer failed to pay unused leave upon resignation; SC ordered payment plus legal interest. |
| Marasigan v. MERALCO (G.R. No. 158931, 16 June 2010) | Sick leaves under CBA enjoyed the same inviolability as SIL; resignation did not forfeit them. |
6. DOLE Compliance and Penalties
- Monetary Claims – Non-payment of converted leave is an illegal deduction (Art. 116) or non-payment of wages (Art. 102).
- Labor Standards Inspection – Findings can trigger compliance orders + 25% administrative fines.
- Wage Order Violations – Treating sick days as absences and deducting salary can be prosecuted under Art. 303 with a fine of ₱100,000–₱500,000 and possible closure.
7. Best-Practice Checklist for HR & Payroll
| Action | When |
|---|---|
| Acknowledge receipt of resignation and confirm last day in writing. | Within 24 h of notice |
| Compute running leave balance (SIL + company) and furnish the employee. | Day 1–3 |
| Issue leave application procedures for the notice period (who to email, medical certificate format, etc.). | Day 1–3 |
| Process conversion to cash simultaneously with clearance routing. | Final payroll run |
| Remit SSS, PhilHealth and Pag-IBIG contributions until the last day. | Regular cycle |
8. Practical Tips for Employees
- File sick leave promptly – Email HR the same day; attach medical proof within 24–48 h.
- Keep copies of leave forms and medical certificates.
- If pressured to work while ill, politely cite Art. 82 (humane conditions) and RA 11058 (OSH).
- Upon exit interview, demand a breakdown of leave conversion and sign only after verification.
Key Takeaways
- You do not lose your sick-leave rights just because you’re serving your 30-day notice.
- The statutory guarantee is at least the 5-day Service Incentive Leave; most companies provide more.
- Unused leave must be paid in cash at separation—no waivers.
- For employers, denial or non-payment exposes you to money claims, penalties and even criminal liability under the Labor Code’s penal provisions.
Legal disclaimer: This article is for educational purposes and does not substitute for personalized legal advice. For disputes, consult a Philippine labor lawyer or seek conciliation-mediation at the DOLE Field Office.