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Quitclaim — check it before you sign
A quitclaim says you were paid and give up claims. It can bind you, so read what it covers first. If you dispute it later, the employer must prove you signed voluntarily, with no fraud, for a credible and reasonable amount, and that it breaks no law.
Updated: · Next check 2027-02-02
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- Final pay duetype the date
- Money claims endtype the date
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Check your own case.
Final pay: DOLE Labor Advisory 06-20. Money claims: 3 years, Labor Code, art. 306 [291]. Illegal dismissal has 4 years.
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Ask for the computation first. It is your strongest paper.
A receipt says you were paid. A quitclaim says you give up claims.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Four things the employer must prove | You signed voluntarily; no fraud; a credible and reasonable amount; nothing against the law | G.R. 255368, 29 May 2024 |
| The amount | There is no exact percentage. In that case 5.20% to 23.42% of the award was too low | G.R. 255368, 2024 |
| Need alone | Need does not cancel a quitclaim if there was no fraud or pressure. So do not count on undoing it later | G.R. 193484; G.R. 215874 |
| What it covers | Read the words. One quitclaim covered money but not reinstatement | G.R. 236496, 2019 |
| Company property | The employer may hold terminal pay until you return company property, but still owes it | G.R. 202961, 2015 |
| Final pay and COE | Final pay within 30 days, Certificate of Employment within 3 days | DOLE Labor Advisory 06-20, read through published copies |
| Time limits | Money claims: 3 years. Illegal dismissal: 4 years. A written demand interrupts the period | Labor Code, art. 306 [291]; G.R. 185463 |
| If a court cancels it | What you received is returned or offset | G.R. 215874 |
DOLE’s own site did not open. Labor Advisory 06-20 and Department Order 249-25 were read through published copies.
What does not exist
Be careful with these.
- “Sign now or you get nothing”: You can ask for time to read it. Final pay is owed either way.
- “A fixed percentage makes it valid”: The Supreme Court says there is no exact percentage.
- “A quitclaim always covers everything”: One quitclaim covered money but not reinstatement. Read yours.
Step by step
What to do, in order
1
Get the computation
Ask for it line by line: salary, 13th month pay, leave, separation pay.
2
Read what you give up
Money, dismissal, reinstatement, “all claims”. Ask for time.
3
Do your own math
What share of what you are owed does this amount cover?
4
Offer the receipt
If the amount is only what you are already owed, offer the receipt below instead.
5
Keep the papers
The signed paper, the computation, proof of payment and any written demand.
6
If there is a dispute
SEnA first: a Request for Assistance with DOLE, NCMB or NLRC.
Questions
Can I refuse to sign a quitclaim?
You can ask for time to read it, and offer a receipt that covers only the amounts paid. Final pay is owed either way.
Is a quitclaim always valid?
No. The employer must prove the four requisites. But it can bind you, and need alone does not cancel it.
What percentage is too low?
There is no exact percentage. In G.R. 255368, 5.20% to 23.42% of the award was too low.
Can the employer hold my final pay?
It may hold terminal pay until you return company property, but it still owes it.
Where do I go first?
SEnA: a Request for Assistance with DOLE, NCMB or NLRC, online or in person. It runs 30 calendar days, up to 15 more by agreement.
Official sources
- Abad v. San Roque Metals, G.R. 255368, 29 May 2024
- F.F. Cruz v. Galandez, G.R. 236496, 8 July 2019
- Arlo Aluminum v. Piñon, G.R. 215874, 5 July 2017
- Aujero v. Philcomsat, G.R. 193484, 18 January 2012
- Milan v. NLRC, G.R. 202961, 4 February 2015
- Teekay v. Concha, G.R. 185463, February 2012
- Labor Code of the Philippines
- DOLE Department Order 249-25, published copy
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
This page helps you prepare. It is not legal advice.