Philippine labor-law and HR practice guide for private sector (with a public sector note)

1) The core question: Can an employee take leave while serving the 30-day resignation notice?

In general, yes—an employee may request and may be allowed to take leave during the notice period, because the employee remains employed until the effective separation date.

But whether the leave is automatically “a right to take” depends on (a) the type of leave, (b) company policy/CBA, and (c) legitimate operational needs. In practice:

Mandatory/statutory leaves (e.g., certain legally granted special leaves) are harder to deny when eligibility and documentation are met.
Discretionary leaves (most vacation leave arrangements beyond the statutory minimum) are typically subject to approval and scheduling rules.

The resignation notice period is not a legal “leave ban” by default; it is simply a period intended to give the employer time to transition.

2) Resignation notice period basics (private sector)

A. The 30-day rule

Under Article 300 (formerly Article 285) of the Labor Code on termination by employee, an employee generally must give the employer at least one (1) month written notice before the intended effectivity date of resignation (commonly treated as 30 calendar days, unless company policy is more generous).

B. Immediate resignation (no notice) exceptions

The Labor Code also recognizes situations where an employee may resign without notice due to just causes attributable to the employer (e.g., serious insult, inhuman treatment, commission of a crime against the employee, and analogous causes). These situations change the notice-period discussion because the employment can end immediately.

C. What the notice period is—and is not

The law’s notice requirement is about advance notice to the employer. It is not, by itself, a requirement that the employee must render 30 working days of uninterrupted attendance with zero absences. What matters is:

the employee remains employed during the notice period, and
attendance and leave are handled under normal rules (policy + reasonable management controls).

3) Types of leave: what is “a right” vs. what is “by policy”

In the Philippines, leave comes from three sources:

Statute (laws)
Contract/company policy or CBA
Company practice (consistent grant that becomes enforceable as a benefit)

A. Statutory minimum: Service Incentive Leave (SIL)

Service Incentive Leave (SIL) under the Labor Code generally provides 5 days leave with pay after at least one year of service, subject to common statutory exclusions and exemptions (e.g., certain categories like managerial employees, field personnel, establishments already providing at least 5 days paid leave, etc., depending on the factual setting).

Key points for resignation notice periods:

If you are eligible, SIL is a legal benefit.
SIL is commonly understood as usable for vacation or sick leave purposes, and if unused, it is generally commutable to cash (often relevant at separation).

B. Vacation leave (VL) and sick leave (SL) beyond SIL

Most VL/SL schemes in the private sector are policy-based, not mandated by the Labor Code beyond SIL. That means:

the employer may impose approval, scheduling, blackout dates, minimum staffing rules, and documentation (especially for SL).
unused VL/SL conversion to cash on separation depends on policy/CBA/practice, except where the benefit is required by law (SIL).

C. Special statutory leaves that may intersect with resignation

Depending on eligibility, these leaves can apply even during the notice period (because the employee is still employed):

Maternity leave (Expanded Maternity Leave Law)
Paternity leave
Solo Parent Leave
VAWC leave (leave for victims under RA 9262)
Special Leave for Women (gynecological surgery leave under the Magna Carta of Women)

These leaves have their own eligibility rules and documentation requirements. Importantly, an employer should not deny a statutory leave merely because the employee has resigned, if the employee still meets the legal conditions and is still in the employer-employee relationship when the leave is taken.

4) The practical rule: You can request leave, but approval depends on the leave type

A. Leaves commonly subject to employer approval (especially VL)

For most vacation leave (and many policy-based leaves), the employer can require:

advance filing (e.g., X days prior),
supervisor approval,
staffing requirements,
restricted periods (peak season, inventory, audit, etc.).

During a resignation notice period, employers often tighten approval to ensure transition—this can be lawful if applied reasonably and not punitively or discriminatorily.

B. Sick leave: not “discretionary,” but requires proof and good faith

Sick leave is typically treated differently:

It’s not “optional attendance”; it’s an illness or medical incapacity situation.
Employers commonly require medical certificate, especially for repeated or multi-day absences.
If sick leave is policy-based and the employee has credits, it is usually allowed when properly documented.
If the employee does not have SL credits, absence may be leave without pay or charged to other leave credits, per policy.

C. Statutory/special leaves: generally harder to deny when conditions are met

Where a law grants a leave (e.g., maternity/VAWC/special leave for women), employers are expected to honor it when:

eligibility is met, and
required documentation is submitted.

Resignation should not be used as a pretext to refuse a legally mandated leave, though fact patterns can get complex (e.g., eligibility timing, SSS requirements, and whether the employee is still employed when the leave begins).

5) Does approved leave “count” toward completing the 30-day notice?

A. Notice period typically runs in calendar time

A resignation notice is generally understood as calendar days from the date notice is given to the intended effectivity date.

If the employee takes approved leave during that time:

the employee remains employed,
the notice period still elapses, and
the separation date remains as stated, unless both parties agree to adjust it.

B. Employer practice of requiring “30 working days” (why disputes happen)

Some employers insist that the employee must render a full set of working days and may attempt to:

deny vacation leave requests during the notice, or
ask the employee to extend the last day to “complete” turnover.

Legally, an employer can:

deny discretionary leave if business needs justify it; and/or
propose an adjusted last day by agreement.

But an employer cannot force an employee to continue employment indefinitely beyond the resignation effectivity if proper notice was given—though disputes can arise if the employee goes on unapproved absences.

6) What happens if the employee takes leave without approval?

If an employee stops reporting during the notice period and labels it as “leave” without approval/documentation, it can be treated as:

AWOL/unauthorized absence, and potentially
a ground for disciplinary action, including possible termination for just cause (depending on due process and policy).

This matters because:

a just-cause termination can affect how the separation is characterized and can create complications in clearance, COE timing, and internal records; and
the employer may pursue lawful deductions for obligations, subject to legal limits.

However, even in contentious separations, the employee is still generally entitled to lawful final pay components that have accrued (subject to offsets/deductions allowed by law and policy).

7) Can the employer force the employee to use leave during the notice period?

Employers sometimes try to manage the exit by requiring “terminal leave,” especially to reduce access to systems or to prevent operational risk. Legally, the answer depends on what exactly is being “forced”:

A. Scheduling leave vs. depriving benefits

Employers often have legitimate management prerogative to schedule vacation leave in accordance with policy and business needs.
But the employer generally cannot use scheduling tactics to deprive an employee of benefits legally due—especially where the law/policy provides for commutation to cash upon separation (most notably SIL, and any VL conversion provided by policy/CBA).

B. “Forced leave” as a disciplinary move

If “forced leave” is used selectively as punishment for resigning or to harass an employee, it can create risk for the employer (e.g., unfair treatment, bad faith, or constructive dismissal allegations in extreme cases, depending on facts).

8) Leave credits, terminal pay, and conversions upon resignation

A. Final pay usually includes accrued benefits

Upon separation, final pay commonly includes:

unpaid salary,
pro-rated 13th month pay,
conversion/commutation of leave credits if required by law or policy, and
other agreed benefits (commissions earned, incentives per policy, etc.).

The most legally anchored leave conversion is typically:

unused SIL, which is commonly treated as payable if not used (subject to eligibility/exemptions).

For VL/SL beyond SIL:

conversion depends on written policy, CBA, or established practice.

B. Can the employer deduct “negative leave” or advances?

If company policy allows employees to take leave in advance (before it is earned/accrued), many policies provide that the employer may:

deduct the value of unearned leave taken from final pay.

Deductions must still follow Philippine rules on lawful deductions—ideally supported by:

clear written policy/contract, and
employee authorization where required.

C. Clearance and final pay timing

Employers commonly require clearance for orderly turnover. Clearance is a valid administrative process, but it should not be used to unreasonably withhold amounts that are already due. DOLE guidance is widely followed that final pay should typically be released within a reasonable period (often cited in practice as within 30 days from separation, unless a faster release is provided by policy/CBA or unless complexities justify a different reasonable timeline).

9) Using leave strategically during notice: what tends to be lawful (and what triggers conflict)

A. Common lawful arrangements

Employee files VL during notice; employer approves part/all depending on coverage needs.
Employee uses SL with medical proof; employer charges to SL credits or LWOP.
Employee and employer agree that remaining days will be “terminal leave” and last working day is earlier, but the employment end date remains the stated effectivity.

B. Common conflict triggers

Employee assumes VL is automatic and leaves without approval.
Employer denies all leave categorically without explaining business necessity and treats any absence as insubordination.
Parties disagree on whether notice must be “30 working days” (policy language matters here).
Employer attempts to impose punitive conditions (e.g., “no leave because you resigned”) rather than applying neutral policy.

10) Special scenarios

A. Resigning while on leave (already approved)

An employee can submit a resignation while on an approved leave. The notice period can run while the employee is on leave, but:

the employer may still require turnover/clearance steps to be completed appropriately (sometimes after return, sometimes remotely), and
any company policy on system access and handover can be applied.

B. Health incapacity during notice

If the employee becomes genuinely ill:

sick leave or medical leave processes should apply.
If the illness prevents reporting to work, that does not automatically invalidate resignation; it is handled through documentation and leave/LWOP rules.

C. Maternity/parental leave overlapping with resignation

If a statutory leave period overlaps:

entitlement depends heavily on timing and eligibility and, for some benefits, social security rules (e.g., whether the employee is still employed at certain points or has required contributions).
Resignation does not automatically erase a statutory leave right that has already attached, but the factual and timing requirements matter.

D. Contractual employees, project-based, probationary employees

Resignation and leave entitlements can differ based on:

contract terms,
whether SIL eligibility has attached (one year),
specific project rules and policies.

11) Public sector note (government employees)

Government employees are governed primarily by Civil Service Commission (CSC) rules, not the Labor Code regime used for most private sector employment. Key differences commonly include:

a more formal leave credit system (vacation and sick leave credits),
stricter clearance/accountability processes,
rules on terminal leave benefits and monetization, and
agency-specific approval processes.

The general principle remains: until separation takes effect, the employee is still in service and may apply for leave, but approval and monetization are governed by CSC rules and agency policy.

12) Practical compliance guide (Philippine HR reality)

For employees (to avoid problems)

Put the resignation notice and last day in writing and keep proof of receipt.
File leave requests in writing per policy; don’t assume approval.
If sick, secure a medical certificate and communicate promptly.
Keep a turnover plan and document handover; this helps avoid disputes tied to leave approvals.
Confirm how unused leave will be treated in final pay (policy/CBA/practice).

For employers (to manage risk)

Apply leave rules consistently; avoid blanket “no leave because you resigned” approaches.
Decide approvals based on documented business needs and transition coverage.
Put agreements on terminal leave/early release in writing.
Release final pay within a reasonable time and document lawful deductions clearly.

13) Key takeaways

During the resignation notice period, the employee is still employed and can request leave.
Whether leave must be granted depends on the type of leave (statutory vs. policy-based), documentation, and legitimate business needs.
Approved leave generally does not nullify the resignation notice; the notice period typically runs in calendar time.
Unapproved absences can be treated as unauthorized and may trigger discipline.
Unused leave conversion at separation depends on law (notably SIL) and on company policy/CBA/practice for other leave types.