SPECIFIC PROVISIONS/ LABOR LAWS

May I humbly ask help from any one who is capable to give information and educate us as well; Is there any provisions in our law that EMPLOYEE should pay damages like equivalent to three months salary to the Employer due to breach of employment contract just for personal reason or simply doesn't want to continue working.?

WORKING in the Philippines.

WORKING abroad/overseas.

law4us wrote:May I humbly ask help from any one who is capable to give information and educate us as well; Is there any provisions in our law that EMPLOYEE should pay damages like equivalent to three months salary to the Employer due to breach of employment contract just for personal reason or simply doesn't want to continue working.?

WORKING in the Philippines.

WORKING abroad/overseas.

If the penalty conditions are in the contract and it is signed by both parties, then such a clause may be valid.

Civil Code:

Art. 1315. Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law.

NONE, there is nothing in the provisions of the Labor Code that states the same. Since the contract arose from an employer-employee relationship, it is the Labor Code that shall govern. However, to some extent, it is also governed by the provisions of the Civil Code.

For damages (in this instance), even if specifically indicated in the employment contract, the same must be proven by competent evidence through a Civil Action for damages. If not proven, the employer CANNOT demand even a single cent from the employee. If there is an order form the Court specifically granting the employer to demand a certain amount, only then the employer can demand 'damages'. The payment of 'damages' is not automatic in cases of breach like this case. The amount must be proven in court.

For ordinary contracts, any amount which must be paid by the party in breach, as stated in the 'Penalty Clause' in the contract is considered the penalty. However, ordinary contracts (not employment contracts) are governed by the Civil Code.