Fees, Clearance Requirements, and Employer Obligations

1) What a Certificate of Employment is (and why it matters)

A Certificate of Employment (COE) is a written certification issued by an employer confirming that a person is or was employed by the company. In practice, it is commonly required for:

new employment onboarding and background checks
bank loans, credit cards, and other financial applications
visa and travel applications
government transactions (e.g., benefits, housing, registrations)
professional licensing, accreditation, and scholarship requirements

A COE is fundamentally a proof-of-employment document, not a performance evaluation and not a “character reference.”

2) Core legal concept: the COE is a worker’s right, and an employer’s duty

Under Philippine labor standards, an employer has a duty to issue a COE upon the employee’s request. This duty applies whether the worker is:

currently employed, resigned, separated, or terminated (including for cause)
regular, probationary, fixed-term, project-based, seasonal, casual, part-time, or otherwise

The COE exists to document objective employment facts and should not be used as leverage in disputes.

3) Minimum contents of a COE (what it must say)

A COE should be truthful, accurate, and limited to employment facts. The commonly accepted minimum contents are:

Employee’s name
Employer’s name (and ideally address / business details)
Position/title held
Inclusive dates of employment (start date and end date; or “present” if currently employed)
Signature of an authorized representative (HR, manager, or officer)
Date of issuance

Items that are often requested but not always required

Many receiving institutions ask for additional details. Employers often include these when requested and appropriate:

employment status (e.g., regular/probationary/project; or “currently employed”)
department/assignment
salary and allowances (especially for visas/loans)
work schedule or nature of work
company contact details for verification

Practical rule: include only what’s necessary for the stated purpose, and ensure consistency with payroll and HR records.

4) What a COE should NOT include (unless specifically requested and legally safe)

To avoid unfairness and potential liability, a COE should generally not include:

derogatory remarks or subjective assessments
disciplinary history or pending investigations
alleged accountabilities (money/equipment)
the reason for resignation/termination unless the employee specifically asks for it and it can be stated accurately without violating privacy or due process
personal data not needed for the purpose (e.g., SSS/TIN/PhilHealth numbers, home address, birthdays, family details)

A COE is not a place to “explain the case.” If an employer needs to document disputes or accountabilities, that belongs in separate internal records or formal correspondence—not in a COE meant to certify employment facts.

FEES: Can employers charge for a COE?

5) General rule: a COE should be issued without charging the employee

Because issuing a COE is an employer obligation tied to basic labor standards and recordkeeping, the safest and most worker-protective practice is:

No processing fee
No “documentation fee”
No requirement to “pay first” before release

Charging fees can look like the employer is selling compliance with a duty, which is a risk area in labor standards enforcement and disputes.

6) Narrow practical exceptions (handled carefully)

There are limited situations where costs arise, but they should be handled in a way that does not function as a barrier:

Notarization
- A COE is typically valid as a company-issued document even without notarization.
- If a bank/embassy specifically demands notarization, the employee may request it.
- Best practice: the employer issues a signed COE first; notarization—if needed for the employee’s purpose—is treated as an optional additional step, not a condition to issuing the COE.
Courier/shipping to a remote address
- If the employee requests delivery rather than pickup/email, it’s reasonable to treat delivery as optional and charge only actual courier costs—again, without withholding issuance.
Extra copies beyond a reasonable number
- Many employers issue multiple originals at no cost. If truly excessive requests arise, any charge should be limited to actual reproduction cost and applied neutrally.

Bottom line: costs should relate to optional add-ons (notarization, special delivery), not the basic obligation to issue a COE.

CLEARANCE: Can an employer require clearance before issuing a COE?

7) The COE should NOT be conditioned on clearance

In Philippine practice and labor-policy principles, an employer should not withhold a COE on the ground that the employee:

has not completed an exit clearance
has not returned equipment/ID/uniform
has unsettled cash advances/loans
has pending administrative cases
has a dispute about final pay or benefits

Why: clearance is an internal administrative process; a COE is a certification of employment facts. Using the COE as leverage can be viewed as unfair labor practice in spirit (and at minimum, a labor standards compliance issue) because it blocks the worker from obtaining new employment or completing essential transactions.

8) What an employer may do instead (lawful alternatives)

If there are legitimate accountabilities, the employer can:

require clearance for release of company property and internal sign-offs
pursue lawful recovery of property or money through demand letters, set-offs consistent with law/policy, or appropriate legal action
document the employee’s obligations separately

But the employer should still issue the COE, because the COE is not a bargaining chip.

9) Identity verification is allowed (reasonable safeguards)

While clearance should not be a condition, an employer may impose reasonable controls to prevent fraud, such as:

requiring the request to come from the employee’s email on file, or with valid ID
requiring an authorization letter if a representative will pick it up
verifying the correct dates/position to avoid errors
maintaining a release log (especially for originals)

These are administrative safeguards, not barriers.

EMPLOYER OBLIGATIONS: What the employer must do (and how fast)

10) Duty to issue promptly

Employers are expected to issue the COE within a short, reasonable period from request. In Philippine labor guidance and common enforcement expectations, COEs are treated as documents that should be released promptly (often within days, not weeks), precisely because workers need them for employment and compliance transactions.

Delays should be the exception (e.g., archived records), and the employer should still act with urgency.

11) Duty of accuracy and good faith

A COE must be accurate. Employers should ensure the COE matches:

employment contracts/appointments
HRIS records
payroll records
clearance separation dates / last day worked (if separated)

Inaccurate COEs can expose the employer to problems such as:

labor complaints and compliance orders
civil liability if the worker suffers proven damages (e.g., job offer withdrawn because dates were misstated)
reputational and verification issues with banks/embassies

12) Duty to issue even after separation

A common misconception is that COEs are only for current employees. In reality, former employees often need them for years after separation. Employers should maintain employment records and be able to issue COEs post-employment based on archived data.

13) Duty to respect privacy and data protection

COEs involve personal information. Under Philippine data protection principles, employers should:

include only necessary data for the purpose
avoid disclosing sensitive personal information without a legal basis
release COEs to third parties only with the employee’s authorization (unless required by law)

For verification calls/emails, many employers adopt a controlled approach: confirming only objective facts (dates, position) unless the employee consents to more.

14) Practical distinctions: COE vs. clearance, final pay, service record, and references

COE vs. Clearance

COE: proof of employment facts
Clearance: internal exit/accountability process One should not be used to block the other.

COE vs. Final Pay

Final pay involves computations and may legitimately require processing time.
COE is typically straightforward and should not be delayed just because final pay is pending.

COE vs. Service Record

Private sector typically issues COE.
Government service often uses service records and related CSC formats; the concept is similar but documentation standards differ.

COE vs. Character Reference

COE is factual certification.
A character reference is discretionary and subjective; employers are generally not required to provide one.

15) What employees can do if the employer refuses or unreasonably delays

A worker may take graduated steps:

Send a written request (email is fine) with clear details (name, position, dates, purpose if needed).
Follow up and request a specific release date.
If refusal/delay persists, seek assistance through labor dispute mechanisms (commonly via DOLE processes designed to facilitate quick resolution of workplace issues).
In serious cases where refusal causes provable harm (lost job opportunity, etc.), consider civil remedies for damages—though this depends heavily on evidence and causation.

Keeping communications in writing matters because it documents the request, the timeline, and any unreasonable conditions imposed.

16) Best-practice templates (content guidance)

For employers: a clean COE format (essential)

Company letterhead
“To Whom It May Concern” (or addressed to requesting entity)
“This is to certify that [Name] was/is employed with [Company] as [Position] from [Start Date] to [End Date/Present].”
Optional: brief role summary (factual), salary (if requested), status (if requested)
“Issued upon the request of the employee for whatever lawful purpose it may serve.”
Authorized signatory + position + contact info

For employees: what to include in a request

full name used in company records
department/position
employment dates (or approximate, if unsure)
number of copies and whether original signature is needed
whether salary needs to be stated (visa/loan)
preferred release method (pickup/email/courier) and ID/authorization details

17) Key takeaways (Philippine context)

A COE is a right of the worker upon request and a duty of the employer.
The COE should contain objective employment facts; it should not be used to air disputes.
Charging fees for the basic issuance is highly discouraged and risky; only optional add-on costs (e.g., notarization or special delivery) may be treated differently, without blocking issuance.
Clearance is not a valid condition to withhold a COE; accountabilities should be handled through proper channels separately.
Employers must act promptly, accurately, and with privacy safeguards.