DOLE urges employers to release final pay of separated, terminated workers in 30 days

CEBU CITY—Companies should release the final or last pay of terminated or separated workers within the required period, according to the Department of Labor and Employment (DOLE).

DOLE Region 7 regional director Salome Siaton said separated workers, regardless of the cause of their termination, should be given their final pay within 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,” Siaton said in an emailed statement.

“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. (That’s very clear) Within 30 days from the date of the workers’ separation from employment, companies must also be able to release their last or final pay,” she added.

Final pay, last pay or back pay, refers to the sum or totality of all wages or monetary benefits due the employee regardless of the cause of the termination of employment.

It would comprise of but are not limited to the following:

• Unpaid earned salary of the employee; cash conversion of unused service incentive leave (SIL) pursuant to Article 95 of the Labor Code; 

• Cash conversions of remaining unused vacation, sick or other leaves pursuant to a company policy, or individual or collective agreement, if applicable; 

• Pro-rated 13th Month Pay; 

• Separation pay pursuant to Articles 298-299 of the Labor Code, company policy, or individual or collective agreement, if applicable; 

• Retirement pay pursuant to Article 302 of the Labor Code, if applicable;

• Income Tax claim for the excess of taxes withheld, if applicable;

• Other types of compensation stipulated in an individual or collective agreement, if applicable; and, 

• Cash Bond/s or any kind of deposit/s due for return to the employee, if any.

Certificate of employment 

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 three 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,” Siaton clarified.

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. /bmjo