Separation Pay for Resigned Employees

If ang empleyado mismo ang ni-resign:

No, you are not required to give separation pay.

Pero required ka mohatag sa:

  1. Final pay – kani usually includes:
    • Sweldo from the last cutoff to last working day
    • Accrued unused leave credits (if applicable and convertible to cash)
    • Pro-rated 13th month pay (from Jan to resignation month)
    • Any other benefits due
  2. Deductions – i-minus sa final pay:
    • Cash advances
    • Company property not returned (e.g., uniforms, tools)
  3. Quit claim and release – ipapirma para mo-declare siya nga nadawat na niya ang tanan due niya, ug wala na siya’y claim against the company. This protects you. Sample Quit Claim form below.

❓What if bag-o pa siya, like 3 months pa lang?

Yes, required gihapon ka mohatag sa pro-rated 13th month pay. Example:

₱15,000 monthly salary × (3/12) = ₱3,750

⚠️ When is separation pay required?

Only in these cases:

  • Company-initiated termination for authorized causes (redundancy, retrenchment, illness, closure, etc.)
  • Not for resignation.

DOLE Compliance Tips:

  • Issue a Certificate of Employment if requested.
  • Process and release final pay within 30 days after resignation unless there’s a valid reason for delay.
  • Keep a copy of the signed quit claim + proof of release of final pay.
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