Is a quitclaim signed by a dismissed employee a bar to an illegal dismissal complaint?
A quitclaim is not an automatic bar. It is generally ineffective against an illegal dismissal complaint, and it holds only if the waiver was voluntary, understood, supported by reasonable consideration, and free of fraud. The employer carries that burden, since in illegal dismissal cases "the burden of proof that employees were validly dismissed rests on the employers" (Aldovino vs. Gold and Green Manpower Management and Development Services, Inc., G.R. No. 200811 (2019)).
The general rule. Quitclaims are "frowned upon as contrary to public policy" because employer and employee "do not stand on the same footing" (Land and Housing Development Corporation vs. Esquillo, G.R. No. 152012 (2005)). They do not bar employees from demanding legal benefits or contesting dismissal, and accepting separation pay does not estop them from doing so (Sime Darby Pilipinas, Inc. vs. Arguilla, G.R. No. 143542 (2006)).
The exception. A waiver is binding if "voluntarily entered into and represents a reasonable settlement," and the law intervenes only where it was "wangled from an unsuspecting or gullible person" or is "unconscionable on its face" (Periquet vs. NLRC, G.R. No. 91298 (1990)). The requisites are: no fraud or deceit, credible and reasonable consideration, and no contravention of law, public order, or morals.
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