You Signed a Quitclaim: Can You Still File a Case?

They can be. The leading statement comes from Periquet v. NLRC (1990), as quoted by the Supreme Court in Goodrich Manufacturing v. Ativo (G.R. No. 188002, 2010): "Not all waivers and quitclaims are invalid as against public policy. If the agreement was voluntarily entered into and represents a reasonable settlement, it is binding on the parties and may not later be disowned simply because of a change of mind."

The same quoted passage goes on: "It is only where there is clear proof that the waiver was wangled from an unsuspecting or gullible person, or the terms of settlement are unconscionable on its face, that the law will step in to annul the questionable transaction."

In Goodrich, the Court said it gives effect to quitclaims if the employer is able to prove these requisites:

1. The employee signs the quitclaim voluntarily.
2. There is no fraud or deceit on the part of any of the parties.
3. The consideration of the quitclaim is credible and reasonable.
4. The contract is not contrary to law, public order, public policy, morals or good customs, or prejudicial to a third person with a right recognized by law.

The Court also said "the law looks with disfavor on quitclaims and releases by employees who have been inveigled or pressured into signing them by unscrupulous employers seeking to evade their legal responsibilities."

The company was in financial difficulty and offered a voluntary resignation option. Employees who took it were paid separation pay and signed quitclaims. They later sued for deficiencies. The Supreme Court found the quitclaims valid, saying "the considerations received by the respondents from Goodrich do not appear to be grossly inadequate." It reversed the Court of Appeals and reinstated the NLRC decision that had upheld the quitclaims.

From the requisites and the quoted rule, a quitclaim is at risk when:

• It was not voluntary. For example, the worker was pressured or told he or she would get nothing without signing.
• There was fraud or deceit. For example, the worker was misled about what the document was or what he or she was giving up.
• The amount is not credible or reasonable. Terms that are unconscionable on their face can be annulled.
• It is against the law or public policy, or it harms a third person with a right recognized by law.

Each case depends on its facts and evidence. If a quitclaim is set aside, the worker may pursue the claims it covered, such as the remedies for illegal dismissal under [Article 294 [279]](/law/labor-code/article-294). See illegal dismissal remedies.

Under [Article 234 [228]](/law/labor-code/article-234), added by Republic Act No. 10396, all issues arising from labor and employment are subject to mandatory conciliation-mediation, except as provided in the Code or excepted by the Secretary of Labor and Employment. DOLE's Single Entry Approach (SEnA) rules, Department Order No. 107-10, say a settlement agreement reached before the Desk Officer is final and binding. See how to file a labor complaint.

Whether DOLE has replaced these rules with later issuances is not covered on this page.

These are made-up examples to show how the rules work. They are not advice for any real case.

Mario accepts a voluntary separation package during a company downsizing. He reads the papers, receives an amount that matches the company's published formula, and signs a quitclaim. A year later he wants more. As in Goodrich, a voluntary and reasonable settlement is binding and cannot be disowned simply because of a change of mind.

Leni is called to the office on her last day and told to sign a "clearance" form before she can get her final pay. The form turns out to be a quitclaim for a small fraction of what she is owed under the law. If she can prove pressure or unconscionable terms, the quitclaim may be set aside.

Ruben settles his unpaid overtime claim at a SEnA conference and signs a written settlement. Under the SEnA rules, that settlement is final and binding.

Before signing a quitclaim, especially for a large amount or after a dismissal, it helps to know what you are giving up. If you already signed one and believe it was unfair, talk to a lawyer, your union or the Public Attorney's Office soon, because the deadlines for illegal dismissal and money claims keep running. Keep a copy of the quitclaim and proof of what you received. If you cannot afford a lawyer, see Free legal help in the Philippines.