Press Releases
DOLE to companies: release last pay within 30 days from employment separation or termination

 

Cebu City, Philippines. One of the common complaints lodged before the DOLE is the failure of companies to release the final pay or last pay of workers within a reasonable period of time after their engagement of work has been terminated.

DOLE-7 Regional Director Salome O. Siaton said that workers are entitled to their last pay or final pay regardless of the cause of the termination of employment and that the same as well as so-called back pay should be released by employers to workers within thirty (30) days from the date of separation or termination of employment.

“We repeatedly heard workers saying that their former companies would only release their last pay after two to three months. Some would even last longer than three months ever after workers have been already issued with company clearance,” added Director Siaton.

To effectively harmonize the management prerogative of employers and the right of employees, companies are mandated to release the final or last pay within 30 days from separation or termination of employment, unless there is a more favorable company policy, individual or collective agreement that will allow the release of such at an earlier time.

“Once and for all, we have now an advisory that will serve as a guide for all employers as well as for all workers insofar as their rights are concerned. Klaro na ‘yan. Within 30 days from the date of the workers’ separation from employment, companies must also be able to release their last or final pay,” said the DOLE-7 Head.

Final pay, last pay or back pay would refer to the sum or totality of all wages or monetary benefits due the employee regardless of the cause of the termination of employment and must comprise of but are not limited to the following, namely: (1) Unpaid earned salary of the employee; (2) Cash conversion of unused Service Incentive Leave (SIL) pursuant to Article 95 of the Labor Code; (3) Cash Conversions of remaining unused vacation, sick or other leaves pursuant to a company policy, or individual or collective agreement, if applicable; (4) Pro-rated 13th Month Pay; (5) Separation pay pursuant to Articles 298-299 of the Labor Code, company policy, or individual or collective agreement, if applicable; (6) retirement pay pursuant to Article 302 of the Labor Code, if applicable; (7) Income Tax claim for the excess of taxes withheld, if applicable; (8) Other types of compensation stipulated in an individual or collective agreement, if applicable; and (9) Cash Bond/s or any kind of deposit/s due for return to the employee, if any.

Just recently, Secretary Silvestre H. Bello III issued Labor Advisory No. 06, Series of 2020. Also provided for in the advisory is the time that the certificate of employment must be released to workers.

“The employer must issue a certificate of employment within 3 days from the time of the request by the employee. An employee whose employment is not yet terminated may also ask for a certificate of employment,” explained Director Siaton.

She urged workers to visit the DOLE Regional Office or its Field Offices in the event that they have issues or concerns or claim disputes arising from or relating to the release of their final pay or the issuance of their certificate of employment.

 

End//LSenarlo-Taniza

 For more information on this report, you may contact LuchelSenarlo-Taniza, Regional Labor Communication Officer at telefax number (032) 266-2792 or you may send an email at dole_centralvisayas@yahoo.com.

 

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2020-02-04
SALOME O. SIATON
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