Quitclaim and Release (Employment, Philippines)
QUITCLAIM AND RELEASE
Labor Code of the Philippines (PD 442) | DOLE Labor Advisory No. 06-20
This Quitclaim and Release ("Quitclaim") is executed on [Execution Date] at [Execution Place], Philippines, by:
RELEASOR (Employee):
[Employee Name], of legal age, Filipino, with address at [Employee Address], bearing [Employee ID No] ("Employee");
in favor of:
RELEASEE (Employer):
[Company Name], a corporation duly registered with the Securities and Exchange Commission under SEC Registration No. [Company SEC No], with registered office at [Company Address] ("Company").
RECITALS
A. The Employee was employed by the Company as [Position] from [Date of Hire] to [Last Day of Employment].
B. The employment was terminated by reason of [Reason for Separation].
C. The Company has offered and the Employee has accepted the following full and final settlement of all monetary claims arising from the employment and its termination:
SETTLEMENT BREAKDOWN
Separation Pay: [Separation Pay]
Unpaid Wages / Last Salary: [Last Salary]
Pro-rated 13th Month Pay (PD 851): [13th Month Pay]
SIL Cash Conversion (Art. 95 Labor Code): [SIL Conversion]
Other Benefits: [Other Benefits]
TOTAL SETTLEMENT AMOUNT: [Total Settlement]
The Employee acknowledges receipt of the total amount of [Total Settlement] in full on [Payment Date].
RELEASE AND DISCHARGE
In consideration of the settlement amount stated above, the Employee hereby irrevocably releases, discharges, and forever quitclaims [Company Name], its officers, directors, stockholders, agents, representatives, successors, and assigns from any and all claims, demands, actions, and causes of action of whatever nature — whether for unpaid wages, separation pay, 13th month pay, service incentive leave, overtime pay, holiday pay, night shift differential, illegal dismissal, or any other benefit arising from or connected with the employment or its termination under the Labor Code of the Philippines, DOLE regulations, or any other law.
The Employee further undertakes not to file any complaint, charge, or action before the Department of Labor and Employment (DOLE), the National Labor Relations Commission (NLRC), the Regional Trial Courts, or any other tribunal in connection with the employment or its termination, having been fully compensated for all claims covered by this Quitclaim.
VOLUNTARINESS
The Employee hereby declares that: (1) this Quitclaim is executed voluntarily, without fraud, intimidation, coercion, or undue influence from any person; (2) the Employee has been afforded the opportunity to review this document and consult with a legal counsel or union representative before signing; (3) the Employee fully understands the rights being waived and the legal consequences of this Quitclaim; and (4) the total settlement amount of [Total Settlement] represents a reasonable, fair, and adequate consideration for all claims released herein, consistent with the Employee's legal entitlements under the Labor Code and applicable DOLE regulations.
EXECUTED
Executed at [Execution Place], Philippines, on [Execution Date].
Employee (Releasor): ____________________________
[Employee Name]
Authorized Representative of [Company Name] (Releasee): ____________________________
WITNESSES:
1. ___________________________ 2. ___________________________
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES
CITY / PROVINCE OF _________________________
BEFORE ME, a Notary Public for and in the above jurisdiction, personally appeared [Employee Name] presenting [Employee ID No], known to me to be the same person who executed the foregoing Quitclaim and Release and acknowledged before me that the same is a free and voluntary act.
WITNESS MY HAND AND SEAL on [Execution Date] at [Execution Place].
NOTARY PUBLIC
Notarial Commission No.: _______________
Doc. No. ___; Page No. ___; Book No. ___; Series of [Execution Date].
Employee (Releasor)
________________
Signature
Employer Representative (Releasee)
________________
Signature
What Is a Quitclaim and Release (Employment, Philippines)?
A Quitclaim and Release (Employment, Philippines) in the Philippines grants permission for the stated activity and documents the terms on which that consent is given.
The Supreme Court of the Philippines has extensively addressed the validity of employment quitclaims. In the landmark decision in Periquet v NLRC (G.R. No. 91298, June 22, 1990), the Court established that not all quitclaims are per se invalid, but they are looked upon with disfavor and will not bar the employee from pursuing labor claims if: (1) the settlement is not in accordance with law; (2) the consideration is unconscionably low compared to what the employee is legally entitled to; or (3) the settlement was obtained through fraud, undue influence, or duress. This doctrine was reaffirmed in Goodrich Manufacturing Corp v Ativo (G.R. No. 188027, January 27, 2010) and multiple NLRC and Court of Appeals decisions.
For a Philippine employment quitclaim to be valid and enforceable, the Supreme Court requires that: (1) it must be executed voluntarily, with full understanding of its terms and legal consequences; (2) it must be supported by consideration that is reasonable and not unconscionably low — ideally equal to or exceeding all amounts legally due to the employee; (3) the employee must have been afforded the opportunity to consult with a lawyer or union representative before signing; and (4) it must be notarized before a notary public under the 2004 Rules on Notarial Practice to be admissible as evidence. A quitclaim executed by an employee who was not informed of their legal entitlements or who received manifestly inadequate consideration will be struck down by the NLRC or Regional Trial Court.
The quitclaim must be distinguished from the Deed of Release executed upon retirement under RA 7641, and from the waiver of illegal dismissal claims, which requires additional elements of voluntariness and adequacy of consideration given the severity of the infringement on security of tenure guaranteed under Article 294 of the Labor Code.
The legal framework governing the Quitclaim and Release (Employment, Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Quitclaim and Release (Employment, Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Labor Code of the Philippines (PD 442) sets the foundational requirements.
When Do You Need a Quitclaim and Release (Employment, Philippines)?
An Employment Quitclaim and Release is needed in the Philippines in the following situations.
An Employment Quitclaim is required when an employee is separated through resignation, retirement, authorized-cause termination, or mutual agreement, and the employer has prepared the final pay package — including separation pay, pro-rated 13th month pay, SIL conversion, and unpaid wages — to formally close out the employment relationship and obtain the employee's acknowledgment of full settlement.
An Employment Quitclaim is needed when an employer and employee have reached a compromise settlement of a pending labor dispute before the NLRC, Regional Arbitration Branch, or DOLE Regional Office, formalizing the agreed amount and the employee's release of all claims arising from the dispute.
An Employment Quitclaim is required when a company is undergoing retrenchment, redundancy, or closure under Articles 298-299 of the Labor Code and must document that each separated employee has received and acknowledged their statutory separation pay before the program is deemed complete.
An Employment Quitclaim is needed when an employee has voluntarily resigned and the employer wishes to confirm the absence of any outstanding claims, protecting the company from future money claims before the NLRC under the three-year prescriptive period for labor money claims under Article 305 of the Labor Code.
An Employment Quitclaim is required as part of the clearance process — together with the Exit Clearance Form — when the employee has returned all company property, cleared all financial accountabilities, and is entitled to receive the certificate of employment (COE) under DOLE Labor Advisory No. 06-20.
Parties in Philippines should prepare a Quitclaim and Release (Employment, Philippines) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Quitclaim and Release (Employment, Philippines)
A valid Philippines Employment Quitclaim and Release contains the following essential elements.
Parties: Full legal name of the employee (Releasor) and the employer company with SEC registration number (Releasee), as required for the notarial act under the 2004 Rules on Notarial Practice.
Employment Details: Position, department, date of hire, and last day of employment to establish the period of the employment relationship being closed out.
Statement of Settlement Amount: Itemized list of all monetary claims being settled — including separation pay (with computation under Articles 298-299), pro-rated 13th month pay (PD 851), SIL cash conversion (Article 95), unpaid wages, and any other accrued benefits — with the total settlement amount in Philippine Pesos (PHP).
Acknowledgment of Receipt: Express statement that the employee has received the full settlement amount in cash or via bank transfer, with the date and reference number of payment.
Release and Discharge: Clear language releasing the employer, its officers, directors, agents, and assigns from any and all claims, demands, actions, and causes of action arising out of or related to the employment and its termination.
Voluntariness Declaration: Statement that the employee executes the quitclaim voluntarily, without fraud, coercion, or undue influence, and with full understanding of the rights being waived — as required for validity under the Supreme Court's Periquet v NLRC doctrine.
Notarization: The quitclaim must be notarized before a notary public in the Philippines under the 2004 Rules on Notarial Practice, with the employee personally appearing and presenting competent evidence of identity (valid government-issued ID).
BIR Tax Clearance: Confirmation that the employer will process the BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) for the employee's final compensation within the applicable BIR deadline. The forms-legal.com Employment Quitclaim and Release (Philippines) template incorporates all elements required for NLRC evidentiary purposes under the Periquet v NLRC doctrine.
Additional compliance elements for a Quitclaim and Release (Employment, Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Forms Legal. (2026). Quitclaim and Release (Employment, Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/employment/termination/quitclaim-employment-philippines
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title = {Quitclaim and Release (Employment, Philippines) (Philippines)},
year = {2026},
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note = {Free legal document template. Based on Labor Code of the Philippines (PD 442)}
}Frequently Asked Questions
Employment quitclaims in the Philippines are not automatically valid, as the Supreme Court has consistently scrutinized them given the unequal bargaining position between employer and employee. In Periquet v NLRC (G.R. No. 91298, June 22, 1990), the Supreme Court held that a quitclaim is valid only if: (1) the employee executed it voluntarily without duress or undue influence; (2) the consideration received is reasonable and not unconscionably low — meaning it is equal to or approximates the employee's full legal entitlement; and (3) the employee understood the terms and their legal consequences. A quitclaim supported by manifestly inadequate consideration — for example, an amount significantly below the statutory separation pay — will be struck down by the NLRC and the courts. The Supreme Court in Gamo v Coca-Cola Bottlers Philippines (G.R. No. 193965, June 2, 2014) reiterated that workers' rights cannot be bargained away for unconscionably low amounts.
Not necessarily. Under Philippine labor jurisprudence, a validly executed quitclaim — one that is voluntary, supported by adequate consideration, and executed with full understanding — generally bars subsequent money claims before the NLRC or labor arbiters for the same causes covered by the quitclaim. However, a quitclaim will not bar labor claims if the employee can prove it was obtained through fraud, intimidation, or undue influence; if the consideration was unconscionably below the legal entitlement; or if the employee was not informed of their legal rights before signing. The Supreme Court in Philippine Carpet Employees Association v Sto. Tomas (G.R. No. 168717, March 13, 2009) held that the right to security of tenure under Article 294 of the Labor Code cannot be waived through a quitclaim, meaning an illegal dismissal claim survives even a signed quitclaim if the dismissal was without just or authorized cause and due process.
Philippine courts and the NLRC do not specify a fixed minimum peso amount for quitclaim consideration — the standard is whether the consideration is reasonable relative to what the employee is legally entitled to receive under the Labor Code (PD 442) and applicable jurisprudence. A consideration equal to or approximating the full legal entitlement — including separation pay under Articles 298-299, pro-rated 13th month pay under PD 851, SIL cash conversion under Article 95, and all unpaid wages — is the safest approach. The Supreme Court in Periquet v NLRC (G.R. No. 91298, June 22, 1990) and in Gamo v Coca-Cola Bottlers Philippines (G.R. No. 193965, June 2, 2014) consistently struck down quitclaims where the consideration was manifestly and unconscionably below the employee's legal entitlement. Conversely, in cases where the employee received at or near their full statutory entitlement, the NLRC and the Court of Appeals have upheld quitclaims as bars to subsequent money claims for the same causes. Where the separation arose from authorized causes under Article 298 — redundancy, retrenchment, or closure — the minimum separation pay of one month per year of service or one-half month per year of service (depending on the cause) must be reflected in the quitclaim consideration for the release to withstand NLRC scrutiny.
An employment quitclaim in the Philippines is not technically required to be notarized by statute under the Labor Code (PD 442) or the Civil Code (RA 386) to be binding between the parties — a signed written quitclaim supported by adequate consideration is enforceable. However, notarization before a Philippine notary public under the 2004 Rules on Notarial Practice is strongly recommended and is standard practice for the following reasons: (1) notarization converts the document into a public instrument under Rule 132 of the Rules of Court, giving it a presumption of regularity and greater evidentiary weight before the NLRC and the courts; (2) the NLRC and Regional Arbitration Branches give more weight to notarized quitclaims when evaluating voluntariness, as notarization requires the personal appearance of the signatory before the notary public with competent evidence of identity; (3) Philippine banks and the BIR may require a notarized quitclaim as part of final pay processing documentation; and (4) the employer's DOLE Rule 1020 Establishment Report and personnel records are more credible with notarized separation documents. The National Labor Relations Commission has consistently given less weight to unnotarized quitclaims where the employee claims duress or inadequate consideration.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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