Resigning Philippines

Obligation to Pay Breach of Contract Penalty When Resigning Before Completing a Three-Year Contract in the Philippines

Query:

An individual is in the second year of a three-year employment contract and is considering resignation. HR states that the individual would need to pay a breach of contract penalty. Is this obligation factual, even if a two-weeks notice is given to the employer?

Answer:

Employment Contracts and Penalties:

In the Philippines, it's common for employment contracts to include clauses specifying penalties for premature termination of the contract. These are legally binding provisions, and failure to adhere to them can result in financial liabilities for the employee.

Two-Weeks Notice:

Providing a two-weeks notice may fulfill a separate contractual or ethical obligation to give advance notice before resigning. However, it may not necessarily absolve the employee from paying a breach of contract penalty if such a provision exists in the employment agreement.

Legal Remedies:

1. Review the Contract: The first step is to carefully review the employment contract to understand the exact terms related to termination and penalties.

2. Consult Labor Code: Philippine Labor Code provisions also guide contractual obligations, and certain penalties may be deemed "unconscionable" or "unfair" under the law.

3. Legal Advice: Consult a lawyer to explore options such as negotiating the penalty or examining whether the penalty clause is enforceable under Philippine law.

Summary:

If the employment contract includes a penalty clause for premature termination, then the HR department's claim is likely factual. Providing a two-weeks notice does not automatically nullify this contractual obligation. To fully understand one’s rights and obligations, a thorough review of the contract and possibly seeking legal counsel is advisable.

Note: This article is for informational purposes only and should not be considered as legal advice. For advice tailored to your specific situation, consult a qualified legal professional.

Deed of sale Philippines

Legal Remedies and Complications for Buyers Relying on "Deed of Absolute Sale" in a Subdivided "Mother Lot" in the Philippines

Query:

A buyer purchased a 585 sqm parcel of land, part of a "mother lot," which has been subdivided among children/heirs. The title to the "mother lot" still bears the name of the mother, and the buyer relied solely on a "Deed of Absolute Sale" for the transaction. The seller indicated that the heirs have no interest in working to have the "mother lot" title transferred to the new owner. What legal remedies exist for the buyer, and are there legal complications?

Answer:

Title Still Under Mother's Name:

If the title to the "mother lot" remains under the name of the deceased parent, this suggests that the property has not been properly settled and divided through the legal process of estate settlement, which can be a red flag for buyers.

Deed of Absolute Sale:

The Deed of Absolute Sale is a significant document, but it is not a title. Without a proper land title, the buyer doesn't have full legal ownership of the property.

Legal Remedies for Buyer:

1. Extra-Judicial Settlement of Estate: One remedy is for the buyer to convince the heirs to execute an extra-judicial settlement of estate if all heirs are of legal age and there are no debts left by the deceased.

2. Judicial Settlement of Estate: If an extra-judicial settlement is not feasible, the buyer may need to be part of a judicial settlement of the estate to ensure that the property is properly divided and that the title can be transferred.

3. Annotation: The buyer can also request that the Deed of Absolute Sale be annotated on the existing title as a form of claim or encumbrance, although this doesn't replace the need for a proper title.

Legal Complications for Buyer:

1. Possible Invalidity: If the heirs sold the property without proper legal authority (i.e., without undergoing estate settlement), the sale could be voided, which puts the buyer at risk.

2. Delays: The buyer may experience significant delays in securing a proper title.

3. Cost: Additional costs for legal processes, such as estate settlement, could be incurred.

Summary:

Buyers in this situation face multiple legal hurdles, including possible invalidity of the transaction and delays in securing a title. Legal remedies include pursuing either an extra-judicial or judicial settlement of estate.

Note: This article is intended for informational purposes only and should not be considered as legal advice. It is always advisable to consult a qualified lawyer for advice tailored to your specific circumstances.

Relationship During Ongoing Divorce Philippines?

Is It Illegal to Be in a Relationship During an Ongoing Divorce in the Philippines?

Query:

A person wants to know if it is illegal to be in a relationship while a divorce is ongoing, particularly when the divorce is awaiting the signature of the other party.

Answer:

The concept of divorce does not formally exist in the Philippine legal system, except for some provisions applicable to Muslims. The closest equivalents are annulment and legal separation, and the rules governing these differ from those in jurisdictions where divorce is permitted.

Adultery and Concubinage:

If you're still legally married and you engage in a relationship with someone else, you may expose yourself to criminal liability for adultery if you're a woman, or concubinage if you're a man. These offenses are punishable under Articles 333 and 334 of the Revised Penal Code of the Philippines.

Pending Annulment or Legal Separation:

If you have a pending annulment or legal separation case, being in a relationship with someone other than your spouse can potentially affect the outcome of your case. Courts may consider it as evidence of marital misconduct, which can impact spousal support, child custody, and the division of assets.

Signature Pending:

If the annulment or legal separation is "waiting for the signature of the other party," it means the case is not yet finalized. Thus, you're still legally married, and the risks mentioned above still apply.

Summary:

Engaging in a new relationship while an annulment or legal separation is ongoing can be risky in the Philippines. It could not only expose you to criminal liability for adultery or concubinage but also adversely affect the outcome of your annulment or legal separation case.

Note: This article is intended for informational purposes only and should not be considered legal advice. Consult a qualified lawyer for advice tailored to your specific circumstances.

Unregistered Business Philippines

Legality of Operating a Small Unregistered Online Business in the Philippines

Question:

I have a small online business that has been operating for four years, and it's not registered. I don't earn more than P20,000 monthly. Is this legal?

Answer:

Legal Requirements for Businesses in the Philippines:

1. Business Registration: Under Philippine law, specifically the Code of the Municipality where your business operates, all businesses are generally required to be registered.

2. Tax Registration: The Bureau of Internal Revenue (BIR) requires all income-generating entities to be registered and to pay appropriate taxes.

3. DTI and SEC: Sole proprietorships need to be registered with the Department of Trade and Industry (DTI), while corporations and partnerships typically register with the Securities and Exchange Commission (SEC).

4. Online Sellers: Republic Act 10175, also known as the Cybercrime Prevention Act, could potentially be applicable to online businesses, although its primary focus is not on business registration.

Consequences of Not Registering:

1. Penalties and Fines: You may be subjected to penalties, fines, or even criminal charges for operating an unregistered business.

2. Tax Evasion: Failing to register with the BIR could lead to charges of tax evasion.

3. Lack of Legal Protections: Operating without registration could make it difficult for you to enforce contracts or seek legal remedies.

Income Level:

The fact that you earn less than P20,000 monthly doesn't exempt you from the requirement of business registration. However, it may qualify you for some tax incentives or exemptions, depending on existing laws and regulations.

Recommendation:

1. Business Registration: It's advisable to register your business with the appropriate government agencies to avoid legal complications.

2. Tax Consultation: Speak with a tax consultant to understand your tax obligations and potential exemptions.

3. Legal Counsel: Consult a lawyer to fully comprehend the legal ramifications of operating an unregistered business and how to transition to a legally compliant status.

Conclusion:

Regardless of how small your online business is or how much you earn, it's generally advisable to adhere to the legal requirements of business and tax registration to avoid potential complications.

Disclaimer:

This article is for informational purposes only and does not constitute legal advice. For personalized legal advice, consult with a qualified attorney.

Sexual Harassment in the Workplace Philippines

Sexual Harassment in the Workplace and Legal Remedies in the Philippines

Question:

I am a victim of sexual harassment at work. The offender was only suspended, and we still work in the same department, reporting to the same manager. I find it emotionally torturous to be in the same space as him. What are my legal remedies? Can I file a case with the Department of Labor and Employment (DOLE)?

Answer:

Legal Framework:

1. Republic Act No. 7877: Also known as the "Anti-Sexual Harassment Act of 1995," this law penalizes sexual harassment in the employment, education, or training environment.

2. Company Policies: Companies often have their own internal rules governing conduct, including disciplinary measures for sexual harassment.

3. Administrative and Criminal Cases: Victims have the option to file both administrative and criminal cases against the perpetrator.

Legal Remedies Available:

1. Appeal HR's Decision: If you are unsatisfied with HR's decision, you may appeal to higher management or to any grievance committee within the company.

2. File a Case with DOLE: Yes, you can file a case with the Department of Labor and Employment for violation of labor laws, including your right to a safe and healthy work environment.

3. Criminal Complaint: File a criminal case under RA 7877 with the prosecutor’s office. A criminal case may proceed independently of any administrative case.

4. Civil Case for Damages: You can also file a civil case for moral and exemplary damages against the offender.

5. Legal Consultation: Consult with a lawyer to explore these options in detail, including possible remedies under other laws.

6. Resignation with Cause: In extreme cases, if the work environment becomes unbearable, you may resign and claim constructive dismissal, entitling you to separation pay and benefits.

Addressing Psychological Trauma:

You may also want to consult a psychologist or psychiatrist. Medical documentation could be vital evidence in any legal proceeding you might undertake.

Conclusion:

Your situation is indeed a sensitive and challenging one. Various legal routes are available to you, from company internal processes to criminal and civil courts. It's important to consult a legal expert to tailor the approach to your specific circumstances.

Disclaimer:

This article is intended for informational purposes only and should not be construed as legal advice. Consultation with a qualified attorney is highly recommended for personalized legal guidance.