2. Unilateral Termination

Unilateral Termination by the Employee

Concept

Unilateral termination is the employee’s act of ending the employment relationship without a mutual agreement to do so. The applicable rule depends on the employment covered: specific rules apply to domestic workers and historical provisions apply to employment without a definite period in commercial, industrial, or agricultural establishments or enterprises. (Sec. 32, Rep. Act No. 10361)¹ (Rep. Act No. 1787 (amending Art. 1))²

Governing provisions

Sections 32 and 33 of Republic Act No. 10361 govern a domestic worker’s termination of employment, including termination before a fixed term expires and notice where the duration of service is undetermined. The domestic worker’s written employment contract must state, among other matters, the period of employment and terms on termination. (Sec. 32, Rep. Act No. 10361)¹ (Sec. 33, Rep. Act No. 10361)³ (Sec. 11, Rep. Act No. 10361)⁴

Republic Act No. 1787 amended the earlier rules on employment without a definite period. Republic Act No. 1052 was repealed by Presidential Decree No. 442; its notice provision is therefore not the current general rule. (Rep. Act No. 1787 (amending Art. 1))² (Preamble, Rep. Act No. 1052)⁵

Requisites / Rules

• Domestic service with a fixed term. Neither party may terminate before the term expires except on grounds provided in Sections 33 and 34. Section 33 allows the domestic worker to terminate at any time before expiration for the causes it specifies. (Sec. 32, Rep. Act No. 10361)¹ (Sec. 33, Rep. Act No. 10361)³
• Causes available to the domestic worker. These include verbal or emotional abuse; inhuman treatment, including physical abuse; a crime or offense against the worker; the employer’s violation of the contract or statutory standards; a disease prejudicial to the health of the worker, employer, or household members; and analogous causes. (Sec. 33, Rep. Act No. 10361)³
• Domestic service of undetermined duration. Either party may give notice five days before the intended end of service. The parties may also mutually agree, upon written notice, to pre-terminate the contract. (Sec. 32, Rep. Act No. 10361)¹
• Departure without justifiable reason. Any unpaid salary due to the domestic worker, up to the equivalent of 15 days’ work, is forfeited. If service ends within six months of employment, the employer may also recover deployment expenses incurred, if any. (Sec. 32, Rep. Act No. 10361)¹

Distinctions

Do not apply the domestic-worker rules interchangeably with the older provisions for employment without a definite period in commercial, industrial, or agricultural establishments or enterprises. Under Republic Act No. 1787’s amended text, an employee in the latter category could terminate with just cause, or without just cause by giving the employer written notice at least one month in advance; the employer could hold the employee liable for damages if that notice was not served. (Sec. 32, Rep. Act No. 10361)¹ (Rep. Act No. 1787 (amending Art. 1))²

Key doctrines

An asserted resignation must be voluntary: it requires both an intent to terminate employment and an overt act. Conduct before and after the alleged resignation is relevant in determining that intent. This inquiry concerns whether the employee actually chose to end the relationship, rather than merely how the departure was labeled. (Mendoza v. HMS Credit Corporation, G.R. No. 187232, 17 April 2013)⁶

Exceptions

A domestic worker’s fixed-term contract may end early on a Section 33 cause available to the worker; the statutory restriction also refers to Section 34 grounds. Separately, the parties may mutually agree upon written notice to pre-terminate the contract. (Sec. 32, Rep. Act No. 10361)¹ (Sec. 33, Rep. Act No. 10361)³

Bar tip

Identify the type and duration of employment first. For a domestic worker, distinguish a justified early departure from leaving without justifiable reason, then check the applicable notice or financial consequence. (Sec. 32, Rep. Act No. 10361)¹ (Sec. 33, Rep. Act No. 10361)³