Release and Waiver — Kasambahay (Philippines)

A Release and Waiver — Kasambahay in the Philippines evidences that consent has been freely given, identifying exactly what has been agreed to and by whom.

The Kasambahay Law (RA 10361) establishes minimum standards for the employment of domestic workers — including househelpers, cooks, gardeners, laundry workers, family drivers, and caregivers — and covers mandatory benefits that differ in key respects from regular employment under the Labor Code (PD 442). Under Section 5 of RA 10361, the employment contract between the employer and kasambahay must be registered with the barangay where the employer resides, and the barangay chairman maintains a registry of all kasambahay in the barangay. The Release and Waiver documents the end of this registered employment relationship.

Mandatory benefits for kasambahay under RA 10361 include: minimum wage (as set by the RTWPB for the applicable region, distinct for kasambahay from the general minimum wage); SSS coverage under RA 11199; PhilHealth coverage under RA 7875 (as amended by RA 11223); Pag-IBIG coverage under RA 9679; 5 days annual service incentive leave under Section 29 of RA 10361; and 13th month pay under PD 851 (confirmed applicable to kasambahay under Section 25 of RA 10361). Under Section 33 of RA 10361, a kasambahay dismissed without just cause is entitled to separation pay of 15 days for every year of service, with a fraction of at least 6 months counted as one full year.

The Kasambahay Release and Waiver differs from the standard employment quitclaim under the Labor Code in that it must reference the specific provisions of RA 10361 and the IRR, and should note whether the kasambahay's SSS, PhilHealth, and Pag-IBIG contributions have been remitted to the respective agencies for the full employment period. Failure to remit mandatory contributions is a violation of RA 10361, Section 30, and the employer bears the full cost of unremitted contributions plus penalties.

For kasambahay who are minors — RA 10361 prohibits employment of children under 15 years of age and restricts employment of children 15-17 — any release and waiver must be executed by the kasambahay's parent or legal guardian as the minor lacks full contractual capacity under Article 1327 of the Civil Code of the Philippines.

A Kasambahay Release and Waiver in the Philippines is needed whenever a household employer and kasambahay end their employment relationship and wish to formally settle all outstanding obligations.

A Kasambahay Release and Waiver is needed when a kasambahay resigns from household service, formalizing the final wage payment, monetization of unused leave, return of personal items entrusted to the kasambahay, and release of both parties from further claims under RA 10361.

A Kasambahay Release and Waiver is required when an employer terminates a kasambahay for just cause under Section 33 of RA 10361 — neglect of duties, misconduct, fraud, commission of an offense — documenting the final wages paid and confirming no separation pay is due for just-cause terminations.

A Kasambahay Release and Waiver is needed when an employer terminates a kasambahay without just cause (authorized cause), triggering the 15-day-per-year separation pay entitlement under Section 33 of RA 10361. The waiver documents the computation and payment of the separation pay, protecting the employer from future NLRC or DOLE claims.

A Kasambahay Release and Waiver is required when a kasambahay's fixed-term contract expires under Section 8 of RA 10361, which authorizes fixed-term contracts subject to compliance with minimum standards. The waiver documents the end of the term and confirms all obligations have been fulfilled.

A Kasambahay Release and Waiver is needed to support the employer's notification to the barangay under Section 12 of RA 10361 that the kasambahay's employment has ended and the barangay registry of kasambahay should be updated. The barangay clearance process typically requires a documented end-of-employment record.

A Kasambahay Release and Waiver is required by SSS, PhilHealth, and Pag-IBIG when employers close the kasambahay's contribution account upon end of employment, as documentation that the employment relationship has ended and final contributions have been settled.

A valid Kasambahay Release and Waiver in the Philippines must contain the following elements to comply with RA 10361 and to protect both employer and kasambahay from future claims.

Parties and Employment Record: Full legal names, addresses, and ages of both the employer and kasambahay. The kasambahay's age is critical — RA 10361 prohibits employment of kasambahay under 15, and minors aged 15-17 require parental consent and guardian co-signature per Article 1327 of the Civil Code. State the date employment commenced and the date of last day of service.

Basis of Separation: The specific ground for separation under RA 10361 — resignation (Section 32), just-cause dismissal (Section 33(a)), unauthorized-cause dismissal (Section 33(b)), or end of fixed-term contract (Section 8). The ground determines the employer's obligations, particularly the separation pay entitlement.

Final Wage Computation: Itemized computation in Philippine pesos (PHP ₱) of all amounts due: unpaid wages for the final pay period (at the applicable RTWPB kasambahay minimum wage for the region); pro-rated 13th month pay under PD 851 and RA 10361, Section 25; monetized unused service incentive leave (5 days per year per Section 29, RA 10361); and any other amounts due under the employment contract.

Separation Pay: If the termination is without just cause under Section 33(b) of RA 10361, the computation of separation pay at 15 days per year of service — specifying the number of years or fractions thereof (fractions of 6 months = 1 year), the daily rate basis, and the total separation pay in PHP ₱.

Mandatory Contribution Certification: Confirmation that SSS contributions (RA 11199), PhilHealth contributions (RA 7875 as amended by RA 11223), and Pag-IBIG contributions (RA 9679) have been remitted for the full period of employment, with the kasambahay's SSS, PhilHealth, and Pag-IBIG numbers recorded. Under Section 30 of RA 10361, employer failure to remit contributions results in the employer bearing unremitted amounts plus applicable penalties.

Release Clause: A mutual release of all claims under RA 10361 and the Labor Code, in consideration of the full payment described in the agreement. The release must be voluntarily executed with full understanding of RA 10361 rights and must not waive any mandatory minimum benefits that cannot be waived by law.

Barangay Registration Update: A provision confirming the parties' obligation to notify the barangay where the employer resides of the end of employment, for update of the barangay kasambahay registry under Section 12 of RA 10361.

Additional compliance elements for a Release and Waiver — Kasambahay (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.