Rules governing voluntary resignation

Dear PAO,

I underwent a company training for a period of time. In exchange for this training, I was required to sign a service agreement where it was provided that I have to work with them for a period of “X” years.

However, I am no longer happy with my work so I consulted the HR department on the procedure as to how I can leave the company. I offered to pay the amount of my training just to have a clean exit. In answer to my query, the HRD said that the company does not accept payments for the training and that it may file charges against those who go AWOL.

My queries are as follows:

1. What if I don’t like to stay with the company, does the company has the right to force me to work? Isn’t that forced labor?

2. If I insist that I will resign can the company refuse my resignation?
DR

Dear DR,

We wish to inform you that no person can compel another to render some service against the latter’s will because such act is tantamount to coercion. However, you must also understand that a person who is obliged by law or a contract to render some service who failed to fulfill what is incumbent upon him shall be liable to pay for damages.

Under the law, a contract is a meeting of minds between two (2) persons whereby one binds himself, with respect to the other, to give something or to render some service (Article 1305, Civil Code). 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, when the parties sign contracts, there is a presumption that they knew that they are bound by the terms of the said contract. Failure on the part of each party will give rise to a cause of action for damages in favor of the aggrieved party.

It is apparent that the company spent for your training so they have to make sure that you are going to make use of your training for the benefit of their company for that certain period required of you to ensure the return of their investment. This proceeds from the natural obligation that no person shall unjustly enrich oneself at the expense of another.

However, if you are no longer satisfied with your company, hence, the company can no longer bring out the best in you as their employee, you can file your resignation pursuant to Article 285 of the Labor Code.  An employee may terminate without cause the employer-employee relationship by serving a written notice on the employer at least one (1) month in advance. This is the so-called voluntary resignation. It is however required that the employer shall be notified of the impending resignation at least one (1) month prior to the intended date thereof.

Your company cannot force you to work for them. Neither can they refuse to accept your resignation if you have complied with the notice requirement of the law. However, you have to prepare yourself of the consequence of your act because you may be held liable for damages for breach of contract. Under the law, obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith (Article 1159, Civil Code). Corollary is Article 19 of the Civil Code which provides “Every person must, in the exercise of his rights and in the performance of his duties act with justice, give everyone his due, and observe honesty and good faith”.  Any violations of these provisions give rise to a cause of action for damages in favor of the aggrieved party. Damages may be in form of actual/compensatory, moral or exemplary damages. Indemnification for damages shall include not only the value of the loss suffered but also that of the profits which the obligee failed to obtain. You may be adjudged by the court to pay damages should your company proceed to sue you.  –Persida Acosta, Manila Times

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