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Quitclaim, Release, Waivers Were you dismissed or laid off from work, or you resigned? Is your employer forcing you to sign an affidavit of quitclaim, release, and waiver before he releases your final pay? Should you sign the quitclaim? Watch this video until the end if you want answers to those questions. Good morning Pilipinas! I am Bacon Palacio your favorite labor attorney. Subscribe and hit the bell notification icon if you are interested in the topic! Requirements of a valid affidavit of quitclaim, release, and waiver / Jiao v. Global Business Bank, 686 Phil. 171 (2012) A company has a Special Separation Program or SSP wherein it will pay all laid off employees 1 and 1/2 month pay per year of service but the employee must sign an affidavit of quitclaim, release, and waiver. The employees availed of the SSP. Time passed, they filed a labor case against their employer for money claims. Can the employee sue their employer for money claims even if they recognize the validity of the layoff, and they signed an affidavit of quitclaim, release, and waiver? The Supreme Court ruled that the employee no longer have a cause of action against the employer because they signed an affidavit of quitclaim, release, and waiver. According to the Supreme Court, an affidavit of quitclaim, release, and waiver will be respected by the Court if: 1) the workers voluntarily signed the quitclaim; 2) There is no fraud or forced used to procure the workers' signatures; 3) the is supported by a valuable consideration; and 4) the quitclaim is not against the law, public order or policy, morals, and good customs, or prejudicial to the rights of third persons. In this case, the workers did not raise the issue of whether they were forced or deceived to sign the quitclaim. Also, the quitclaim is supported by consideration because they received 1 and 1/2 month pay per year of service of separation pay instead of the 1 month [mandated by the Labor Code of the Philippines] These are the reasons the Supreme Court respected the quitclaim in this case. General Rule on Quitclaim / Talla v. NLRC, 256 Phil. (1989) [CLAP!] If the worker resigned and sign a quitclaim. Can he still go after his employer for money claims? This is the issue in this case. According to the Supreme Court, the general rule is when an employee signs an affidavit of quitclaim, release, and waiver: the worker no longer has a cause of action against the employer Unless, the worker challenges the validity of the quitclaim, or alleges that the worker and employer have an agreement regarding the former's salary and benefits and the latter reneged on the agreement. The Supreme Court found out that 3 months after the worker resigned the employer gave him 3 bank checks. The first check was honored, but the other two were not. The Supreme Court concluded that the worker and the employer came to a comprised, thus the employer gave the employee three checks. So, the employer is bound to honor the remaining two checks. Before we continue, have you signed a quitclaim in the past? Tell me all about it in the comments below. Exception to the General Rule on Quitclaim / Philippine Airlines v. Dawal, 781 Phil. 474 (2016) The workers are victims of an illegal layoff. They signed the quitclaim but they wrote that the waiver does not include the results of the labor case the union filed against the employer. Can the employer use the signed quitclaim as a defense against the illegal dismissal case? The Supreme Court ruled that the employer cannot use [as a defense] the signed quitclaims. Even if the workers who are victims of illegal dismissal accepted their separation pay, and signed a quitclaim, they can still file a case of illegal dismissal against their employer. Courts do not favor quitclaims because they employers have more resources than the workers. The workers lost their jobs, they need money to support themselves. So the workers were forced to accept the money offered by the employer, and sign quitclaim. In this case, the workers diligently pursued the case against the employer. Thus, the Supreme Court disregarded the quitclaim they signed. Doctrine of Dire Necessity / Veloso v. Wilson Go, 227 Phil. 230 (1991) While a labor case is pending, and in exchange for P25,000.00 a worker signed a quitclaim in favor of his employer. Time passed, and the worker is asking the court to void the said quitclaim. The worker reasoned that he was forced to sign the quitclaim due to his dire need for money. The Supreme Court concluded that the worker is invoking the doctrine of "dire necessity". The Court will not always void a quitclaim even if the worker is in "dire necessity". Especially in this case. The worker was not deceived or forced to sign the quitclaim. Note: the worker never alleged that the money for the quitclaim is unconscionably low. Should you sign the Affidavit of Quitclaim, Release, and Waiver? It depends. If you are ok with your dismissal, then check if the computation of your final pay is correct, then wait for the company to release your check BEFORE you sign the quitclaim. But, if you intend to file a labor case against your employer, Then don't sign it. "Under Protest" If you are in dire need of money, signed the quitclaim but But sign it as "under protest". Note, the words "UNDER PROTEST" are important. Without it, you might lose the case against your employer. Can Affidavits of Quitclaim, Release, and Waiver be voided? "Attorney, I signed a quitclaim but I forgot to write the words 'UNDER PROTEST'." "Can I ask the court to void the quitclaim?" [Answer: MAYBE!] The issue with quitclaims not signed under protest is that your employer will use it against you in the labor case. If anyone in the company is forcing you not to sign a quitclaim under protest, Tell that person that you will include him in your labor case and seek actual, moral, and exemplary damages. Inform him that his acts are deceitful against you and no one inside the company can prevent you from signing the quitclaim "under protest". Of course, you still need to prove your accusations. So, you might want to bring along a witness, or inform the staff that you will record the conversation. "Attorney, will I lose my labor case if I didn't sign the quitclaim "under protest". [Answer: MAYBE] It depends on the judgment of the arbiter/judge. I highly suggest that you should not allow the HR to bamboozle you. Sign the quitclaim "under protest". 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