Quitclaim fraud

Dear Atty. Angela,

I have been an employee for a retail store for three years now. Despite working for 10 hours a day every day, including regular and special holidays, I did not receive regular or special holiday pay, as well as rest day pay, service incentive leave pay and 13th month pay. I raised this grievance to my employer and during mediation, he told me that he will pay everything so long as I give a resignation letter and sign a waiver quitclaim. Since I wanted to leave anyway and in the hopes of ending the issue faster, I agreed. However, I was given a check which do not correspond to the amount I should receive. When I tried to complain, I am already barred to raise money claims since I signed a waiver quitclaim. Is there a way I could still claim the payment due me?

Ina

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Dear Ina,

Yes, your employer defrauded you into agreeing to resign and accept a lower settlement pay. As such, you may file a case for nonpayment of salary and benefits, and constructive dismissal.

In the recent case of Naldo Jr. et al. v. CORPS, G.R. 243139 (2024), the Supreme Court ruled in favor of the employees, finding that the quitclaims they signed were void for being executed by the employer with an intent to defraud.

The Court reiterated that for a quitclaim to be valid, (a) there must be no fraud or deceit on the part of any parties; (b) the consideration for the quitclaim is credible and reasonable; and (c) the contract is not contrary to law, public order, public policy, morals or good customs, or prejudicial to a third person with a right recognized by law.

The employer bears the burden to prove that the quitclaim constitutes a credible and reasonable settlement of what an employee is entitled to recover, and that the one accomplishing it has done so voluntarily and with full understanding.

In your case, you signed the quitclaim with the honest belief, based on your employer’s assurances, that you would be paid the money claims in full. However, your employer used deceit into making you agree to sign a quitclaim, without you knowing of the fraud.

Thus, following the case, you have been constructively dismissed, and through fraud, you were induced to sign the resignation letter where there was an attempt to disguise dismissal as a voluntary termination of employment. You have a right to be reinstated, and be paid backwages with other benefits.

Atty. Angela Antonio