Quitclaim

Dear Atty. Kathy,

I resigned from my former Company, C. During the clearance and exit process, C’s HR officer assured me that my final pay included my salary during the required 1-month notice period, even if I was not required to report for work anymore. Because of this assurance, I signed the quitclaim to process the crediting of my final pay to my online bank account. However, when I received the final pay a week later, I noticed that my salary during the 1-month notice period was not included in the amount. When I raised this to the HR officer, she said there is nothing she can do about it because I already signed the quitclaim. Can I not really get the lacking amount in the final pay because I already signed the quitclaim?

Irene

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Dear Irene,

The Supreme Court has ruled that quitclaims and/or complete releases executed by the employees do not stop them from pursuing their claims arising from unfair labor practices of the employer. In this connection, the Supreme Court likewise ruled that such quitclaims and/or complete releases are against public policy and therefore, null and void, thus, acceptance of termination of employment does not divest an employee of the right to prosecute his employer for unfair labor practice acts.

Not all quitclaims, however, are invalid for being against public policy. If the agreement/quitclaim was voluntarily entered into and represents a reasonable settlement, it is binding on the parties and may not later be disowned simply because of a change of mind. A quitclaim will only be void from the beginning if it obligates the employee to forego his/her benefits while at the same time exempting the employer from any liability that it may choose to reject. Such void quitclaim would be opposed to Article 22 of the New Civil Code, which provides that no one shall be unjustly enriched at the expense of another.

In sum, for a deed of release, waiver, and quitclaim to be valid, it must be shown that: (a) there was no fraud or deceit on the part of any parties; (b) that the consideration for the quitclaim is credible and reasonable; and (c) that 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. In this regard, it is the employer who is tasked 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 a full understanding of its import.

Based solely on your narration, you signed the quitclaim after the HR officer assured you that your final pay would include your salary during the one-month notice period before your resignation, but that, the final pay you received did not include such salary. In accordance with Supreme Court rulings, such quitclaim is void since it appears that you signed it with the honest belief, based on the assurance made by the HR officer, that you would be paid your final pay, including your salary during the notice period.

Subject to evidence to the contrary, it also appears that there was deceit and/or fraud on the part of C in requiring you to execute the quitclaim to claim to receive your final pay. As a consequence, such quitclaim cannot prevent you from seeking your legitimate claims against C, such as your salary during the notice period.

(Domingo Naldo Jr., et al. vs. Corporate Protection Services Phils. Inc., G.R. No. 243139, 3 April 2024)

Atty. Kathy Larios