Written.

Employees must give at least 30 days' written notice before the intended resignation date (Article 300 of the Labor Code).

Separation pay is not required if the employee resigns voluntarily.

• Last salary earned
• Pro-rated 13th month pay
• Any unused leave credits
• Tax refund (if applicable, this is not employer burden)
• Other due benefits (e.g., commissions, incentives)

Under the Philippine Labor Code, employers may only terminate a permanent (indefinite) employee for “Just Causes” under Article 297 (formerly Article 282). These grounds are strictly defined and cover situations such as:

• Serious misconduct or willful disobedience
• Gross and habitual neglect of duties
• Fraud or willful breach of trust
• Committing a crime or offense against the employer, their family, or authorized representatives
• Other analogous causes recognized under the law

MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent.

Not mandatory.

• Last salary earned
• Pro-rated 13th month pay
• Any unused leave credits
• Tax refund (if applicable)
• Other due benefits (e.g., commissions, incentives)

Kindly note that MTA is considered voluntary and employees are not entitled to unemployment benefits.

No legal notice requirement is needed if the fixed term contract clearly specifies the end date and the term expires per that date. The contract “terminates on its own” at that date.

Generally no separation pay under Articles 298/299 (formerly 283/284) is required just because a fixed‐term contract expired per schedule.

Even when the contract ends normally, certain statutory benefits still apply. These include:

• unpaid wages up to the last workday,
• proportionate 13th-month pay,
• mandatory contributions (SSS, PhilHealth, Pag-IBIG)
• conversion of unused leaves, service incentive leave if applicable

Employers must show a valid cause, either a just cause or an authorized cause, and follow the required due process.

For just cause, this means applying the “twin-notice” rule.

For authorized causes (such as redundancy or installation of labor-saving devices), employers must give the employee and DOLE at least one month’s written notice.

If the early termination is due to an authorized cause, the employee is entitled to separation pay.

• Redundancy or labor-saving devices: at least 1 month pay per year of service or 1 month’s pay (whichever is higher).
• Retrenchment, closure, or disease: at least half-month pay per year of service or one month’s pay (whichever is higher).

• Illegal dismissal → reinstatement + back wages.
• Damages for breach of contract for the unexpired portion of the fixed term.
• Accrued benefits must still be paid.
• Separation pay must be paid on or before separation.