Resignation Filed Prior to Effectivity of Termination Renders Illegal Dismissal Case Without Basis

In Central Azucarera De Bais, Inc. vs. Siason [765 Phil 399 (2015)], the Supreme Court (SC) defines resignation as the formal pronouncement or relinquishment of a position or office.

It is  the voluntary act of an employee who is in a  situation where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and he has then no other choice but to disassociate himself from employment. [Bance, et al. vs. University of St. Anthony, G.R. No. 202724, February 3, 2021]

The intent to relinquish must concur with the overt act of relinquishment; hence, the acts of the employee before and after the alleged resignation must be considered in determining whether he in fact intended to terminate his employment. In illegal dismissal cases, it  is a  fundamental rule that when an employer interposes the defense of resignation, on him necessarily rests the burden to prove that the employee indeed voluntarily resigned.

In the case of Bance, the SC resolved the situation where the employees resigned prior to the effectivity of their termination. Then they filed an illegal dismissal case.

What will happen to the labor case?

The complainants resigned prior to the effectivity date of the termination of their employment. There were ongoing investigations against them for the irregular acts they committed thereby placing them in a  difficult position. The SC found that from the wordings of the resignation letters, it could be implied that their resignations were voluntary.

Though not the sole test, the SC held that the wording of resignation letters may be considered as a factor, together with other circumstances, in assessing the voluntariness of a  resignation.

Also, to emphasize, petitioners did not contend or present countervailing evidence that their resignation was involuntary. Likewise, it is settled that there is  nothing reprehensible or illegal when the employer grants the employee a  chance to resign and save face rather than smear the latter’s employment record.”

Thus, because of the voluntary resignations of complainants prior to the termination of their employment, their complaints for illegal dismissal have no basis.

See here the procedure to observe when the employee refuses to receive employer’s notice.

In addition, the company should send another copy by registered mail and keep the registry receipt for future reference.

Learn how to Validly Terminate Employee in the Philippines with this Tutorial Video of Atty. Elvin

Read more on procedural due process discussion by Atty. Elvin:

Read more on procedural due process by Atty. Villanueva:

Twin Requirements of Notice and Hearing

Procedural Due Process for Other Types of Employment

Notice to Explain: Contents and Requirements