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Breach of Contract

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1 Breach of Contract on Fri Nov 06, 2015 11:20 am


Arresto Menor
I would just like to ask legal advice from the experts here.
I am a Teacher and I signed a contract of two years. My contract
will expire on May 31,2017.
I cannot fulfill the contract because we will be moved out/change
of house/location from Manila to Cagayan sooner this coming
year probably April next year.

My contract exactly says :
" In the event that the above mentioned teacher withdraws before
the expiration of this agreement, she shall reimburse the actual
cost of the training allowance she has received plus 15,000. "

I am willing to pay this but I want to have a sightings/law that says
about this.
I have read too that the employer needs to file the penalty clause first to the NLRC before they can actually charge an employee right?
Also, can these charges be smaller since it should "prorated" as I have aalready served them one year.
Please clarify these processes for me and I am hoping for your immediate response.
Thanks a lot.

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2 Re: Breach of Contract on Fri Nov 06, 2015 11:32 am


Reclusion Perpetua
The contract may be binding - it is not illegal on its face and you agreed to the conditions.

The contract itself is the law.

The civil code says:

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.

There is also no basis for a pro-rated computation unless it is stipulated in the contract or if the employer agrees when you ask them.

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3 Re: Breach of Contract on Fri Nov 06, 2015 2:00 pm


Arresto Menor
Thanks for your immediate response.
No, there is no prorated thing stipulated in my contract.
That is the only penalty clause listed.
So, does that mean I have to pay it in full?

Also, what are the consequences if I would be filing an immediate
resignation? Let us say not rendering 30 days anymore.
Can they file charges against me?

Is it also possible that I pay my bond at my own convenience, like there is a grace period maybe?

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4 Re: Breach of Contract on Fri Nov 06, 2015 2:39 pm


Reclusion Perpetua
If that is in the contract, then you pay what is stipulated.

If you do not render a 30-day notice, then you may be considered AWOL eventually, and the company can file for damages for non-compliance with the resignation procedure.

Payment of any amount due is at the discretion of the company. If it want to give you good terms or a grace period, then good for you, but it is not yours to demand.

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5 Re: Breach of Contract on Fri Nov 06, 2015 3:26 pm


Reclusion Perpetua
I beg to disagree. No company should consider an employee who submitted a resignation letter AWOL, whether approved or not. Employers cannot legally reject a resignation letter as this is tantamount to involuntary servitude. No less than the constitution upholds this right.

AWOL, careful scrutiny of the word suggests that there must be intent of the employee to sever the employer-employee relationship and that intent must be clear. How can one consider an employee AWOL if his intention is to sever the ee-er relationship through a resignation letter?

In the private sector, the only requirement imposed on a resigning employee, is to give a thirty-day advanced notice to the employer. This is to give time to look for replacement and to turn-over all documents and unfinished tasks or projects to the incoming successor. They are not even obliged to give a reason or a just cause for leaving. If they fail to do so, the employer may hold the employee for damages. This may take the form of withholding his or her last month salary so as to pay whatever unpaid obligation that the employee might have incurred in course of employment. In case there is still a balance of the one-month salary, the same shall be turned over to the regional office of the Department of Labor and Employment.

Those who had been trained at company's expense, and who fail to fulfill their obligation to render a number of years of service, must pay the cost of training. If they fail to pay, the company can file a civil suit against them with damages if warranted by the facts. This, however, does not justify disapproval of the employee's resignation.If the worker has the right to work, they certainly have the right also to stop working. Nobody, not even employers or the government can compel any person to render work against his or her will. Employment is a consensual contract. The consent of both the employer and the employees is an essential element for the validity of the contract. Resignation is an EXPLICIT withdrawal of the employee's consent.

Under the Labor Code, the ONLY remedy for the employer if the employer failed to observe the turnover period is to file for damages and NOT to consider an employer AWOL. They cannot even absolutely hold COEs, Clearances, backpays, etc.

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6 Re: Breach of Contract on Fri Nov 06, 2015 5:47 pm


Arresto Menor
I truly appreciate all your help here..
Please bear with me as I have so many questions about legalities
because this school is an Int'l school and I know they can do many things.
I am not saying that they are mean though but as an ordinary person like me,
I know I should know where to stand and how to somehow defend my rights.

If ever that I have another questions in mind, i would definitely
look for your answers. Thanks a lot!

God bless all of you for helping people like us!

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