The salary of a resigning employee

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Persida Acosta

Persida Acosta

Dear PAO,
I am planning to resign from my job. I know that I should give at least a thirty-day notice to my employer before the date of my intended resignation. Since our salary is given twice a month, on the 15th and the 30th of the month, my question is, will I receive my salary for the first pay-out while I am rendering my services within the thirty-day notice?

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Please enlighten me.

Thanks,
Jane

Dear Jane,
Your right to receive your salary while in the thirty-day period prior to your intended date of resignation will depend on the policies of your office as to the release of the last salary for resigning employees. If you intend to resign, you have to give a thirty-day notice to your employer as required by law. Within this period, while you are waiting for the effectivity of your resignation, you will still have to render services to your employer, thus, you will still be entitled to your salary for the said thirty-day period. However, your employer may not give you yet your salary for the reason that you still have to be cleared from any accountability with your company before they release to you your final pay. Take note that every employee has a contract of employment with his/her company and that contract binds both the employer and the employee. In contracts, the contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy (Article 1306, Civil Code). Thus, if there are stipulations as to the manner of release of salary within the thirty-day period in the contract of employment (should there be any) prior to resignation they will bind you, provided that they do not run counter to any law, public policy or morals. In the absence of a contract, the customary practice of the company will thus be consulted.

For your enlightenment, you should first inquire from your company about their existing policy as to payment of the last monthly salary of their resigning employees. You can begin your query with the human resources and accounting departments for your guidance. Generally, the withholding of the salary due to an employee on account of the latter’s resignation or separation from employment is covered by the policies being implemented in the company where you are employed.

The rationale behind this is to give your employer the chance to clear you first from your liabilities, should there be any, before they release your salary for services rendered on that thirty-day period prior to your resignation. You just have to comply with the requirements for your clearance and after you are finally cleared you may still get the said salary.

We hope that we were able to address your query. We need to remind you that this legal advice is based on the facts that you have stated, the same may vary if other facts are added or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net

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1 Comment

  1. Samson D.Lopez on

    I concur with Atty. Percida’s reply because this is what we observe in our organization. The employee is given 30 day notice to notify his superior of his resignation and during 30 day, employee is still expected to report for work until the effective date of resignation. However, may opt to go on a terminal leave if he has still vacation leave credits left to cover his terminal leave.

    We do not right away release the final pay or last salary + statutory and company benefits to the employee because the company will have to check the records with Accounting Department for any accountabilities/liabilities the employee may have while during his employ.

    Should there any accountabilities, this will be off-set against his receivables with the company.