Legal Question in Employment Law in Philippines

Employment Contract

1. I have signed a 4-year contract

2. The contract says that in case I would resign, not completing 4-year service, I would pay the amount of:

A. 300 thousand pesos, provided that I would tender 120-days notice (4 months)... or

B. 400 thousand pesos, if I tender less than 4-month resignation notice.

It seems that the 300K is very high� I have not undergo any training� They have not spent any expenses on me. I was hired with experience already. In fact, I was the one who shared my knowledge and experience with them.


Asked on 1/07/08, 1:02 am

1 Answer from Attorneys
VOLTAIRE T. DUANO VOLTAIRE T. DUANO LAW OFFICE

Re: Employment Contract

A provision of this nature is not illegal per se. Perhaps they have included the stringent provision, such as the one you are referring, because of the position you are occupying with the company and the investment in employing you.

Well the Labor Code provides only a period of 30 days notice. However, this does not prevent the employer and the would be employee to stipulate a longer period with respect to giving notice of termination by the employee.

The facts are not complete, thus, I cannot give an opinion as to whether the amount is unconscionable.But if I take your facts on its face value I would say the amount is unconscionable.

While you cannot violate the agreement without exposing yourself to a costly suit.However, it is another thing as to whether the case against you will prosper.

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Answered on 1/07/08, 1:33 am


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