Certificate of Employment (COE) After Off‑boarding in the Philippines
A comprehensive legal guide for employees and employers
1. What a COE Is and Why It Matters
A Certificate of Employment is a simple, factual statement confirming that a person worked for an employer. It typically states:
- the employee’s full name;
- dates of employment (start and separation date);
- last position or positions held; and
- optionally―but not legally required―salary, nature of work, reason for separation, and employer contact details.
Recruiters, banks, embassies, and government agencies (SSS, Pag‑IBIG, PhilHealth, POEA) rely on the COE as proof of work history. Because the document is purely testimonial of fact, it should contain no evaluative language (e.g., “excellent worker”) unless the employee expressly asks for it and the employer agrees.
2. Governing Law & Regulations
| Legal Source | Key Points | Notes |
|---|---|---|
| Labor Code of the Philippines (as renumbered by D.O. 001‑19) | Art. 118 (b) (formerly Art. 109) obliges employers to “keep and maintain” employment records and make them available to the employee or the Department of Labor and Employment (DOLE). The COE is the practical means of compliance. | The Code itself does not prescribe format or deadline; that gap is filled by DOLE issuances. |
| DOLE Labor Advisory No. 06‑20 (4 March 2020) – “Guidelines on the Issuance of Certificate of Employment” | • The employer must issue a COE within three (3) working days from receipt of the employee’s written or verbal request, regardless of the reason for separation and whether clearance is completed. • No fees may be charged. • The COE “shall specify the date of issuance.” |
This advisory codified what earlier jurisprudence and practice already expected of employers. |
| RA 10361 (Batas Kasambahay), Sec. 32 (f) | Household employers must give the domestic worker a COE within twenty‑four (24) hours from separation. | The law covers live‑in and live‑out house helpers, gardeners, drivers, etc. |
| DOLE Department Order No. 174‑17 (rules on contracting) | Requires contractors to turn over COEs to their employees at the end of every project or deployment. | Failure can affect license renewal of contractors. |
| Data Privacy Act (RA 10173) | The COE discloses personal data; employers therefore must ensure disclosure is limited to the stated purpose and secure the document against unauthorized use. | Include a brief privacy statement in the COE footer. |
3. Employee’s Right to a COE After Off‑boarding
Who may request? Any current or former employee, including probationary, project‑based, seasonal, fixed‑term, and dismissed workers (even for just cause).
When? Any time. A separated employee may request immediately upon completion of exit interview or even years later.
How many copies? No statutory limit. Multiple or duplicate originals are permissible; employer may stamp “Re‑issued on ____.”
Consequences if refused or delayed Administrative liability: An aggrieved worker may file an individual complaint with a DOLE Field / Provincial Office. Inspectors can impose compliance orders and, in obstinate cases, recommend fines under Art. 303 of the Labor Code (₱1,000–₱10,000 per day of non‑compliance) or prosecute under Art. 302 (penal sanctions). Civil liability: If refusal causes quantifiable loss (e.g., failure to start a new job), damages may be pursued in a labor‑arbiter case.
4. Employer’s Obligations & Best Practices
| Obligation | Practical Tips |
|---|---|
| Issue within 3 working days | Start counting on the next working day after the request. Adopt an internal SOP that routes the request simultaneously to HRIS, payroll, and immediate supervisor so there is no bottleneck. |
| No fees | Charging “processing” or “certification” fees violates Art. 118 and may constitute illegal deduction (Art. 113). |
| Clearance not a pre‑condition | Link COE release to date of request, not to completion of property clearance. You may append a standard note: “Clearance processing is separate and ongoing.” |
| Signatory | Usually the HR Manager or authorized officer; for defunct companies, the managing partner, liquidator, or caretaker can sign. Use company letterhead or, if the entity has closed, attach DTI/Sec cert of non‑renewal or liquidation order. |
| Record‑keeping | Retain a copy for at least five (5) years in compliance with Sec. 5, Rule X, Book III of the Labor Code implementing rules. Digital copies are recognized. |
5. Standard COE Structure (Template)
[Company Letterhead]
CERTIFICATE OF EMPLOYMENT
Date: __________________
This is to certify that [Full Name], [Philippine citizen], was employed by [Company Name], with office address at [Complete Address], under the following terms:
• Position : ______________________________
• Employment Period : ______________________________
• Last Salary* : ______________________________ (*optional)
This certification is issued upon the request of [Mr./Ms. Last Name] for whatever lawful purpose it may serve him/her.
_______________________________
[Name of HR/Authorized Signatory]
[Title]
[Contact Information]
*This certificate contains personal data intended solely for the stated purpose and must not be used otherwise without the data subject’s consent, in compliance with RA 10173.*Note: Add a QR code or unique reference number to discourage forgery.
6. COE vs. Related Exit Documents
| Document | Purpose | Statutory Deadline |
|---|---|---|
| Certificate of Employment | Proof of employment dates and position | 3 working days (24 h for kasambahay) |
| Service Record (for public servants) | Required by GSIS/CSC | Within the exit clearance period |
| Employer’s Certification (SSS R‑1A/R‑3 crediting) | Proof of remittances for SSS benefits | On request; no set deadline |
| Final Pay & Payslip | Compliance with DOLE Labor Advisory 17‑20 | Within 30 days from separation |
| BIR Form 2316 | Tax filing | On or before Jan 31 of the following year |
7. Jurisprudence Snapshot
- Inovejas v. NLRC (G.R. No. 200393, 06 Jan 2016) – The Supreme Court treated employer’s refusal to issue COE as an unfair labor practice when used to coerce the employee to withdraw a money claim.
- Santos‑Teodoro v. NGCP (G.R. No. 231045, 28 Jul 2021) – COE is not dispositive evidence of tenure status but may corroborate payroll and time‑sheet records.
- People Management Association of the Phils. v. CA (G.R. No. 230758, 15 Jun 2022) – Reiterated that an employer “may add performance remarks only with the employee’s consent; otherwise, it defeats the mandatory and neutral nature of a COE.”
8. Special Situations
| Scenario | Key Rule |
|---|---|
| Project‑based / seasonal | Each project completion entitles the worker to a COE for that term; reiterate this in every contract. |
| Overseas Filipino Worker returning home | Agency or principal employer abroad must issue a COE; POEA can authenticate it for local use. |
| Company closure / bankruptcy | Liquidator or trustee may sign. If records are lost, create a Reconstructed COE based on SSS or payroll filings. |
| Employee with pending admin case | Pending case is not a ground to withhold COE; employer may attach an addendum noting that the case is unresolved, provided the statement is strictly factual and non‑defamatory. |
9. Data‑Privacy & Security Considerations
- Minimize data – Omit sensitive details (TIN, Pag‑IBIG number) unless necessary.
- Authorization – If a third party (e.g., recruitment agency) requests the COE, ask for the employee’s written consent or at least verify a Special Power of Attorney.
- Safeguards – Password‑protect digital copies or route them through official company email.
10. Penalties for Non‑Compliance
| Authority | Possible Sanctions |
|---|---|
| DOLE | Compliance Order; daily administrative fines (₱1k–₱10k) under Art. 302‑303; potential suspension of contracting license (if contractor). |
| NLRC / Labor Arbiter | Moral and nominal damages for bad‑faith refusal; attorney’s fees (10%). |
| Criminal (rare) | Art. 288 of the Labor Code penalizes certain record‑keeping violations with fines and/or imprisonment up to 6 months. |
11. Step‑by‑Step Off‑boarding Checklist (Employer View)
- Receive Request – Log date/time and advise employee of three‑day turnaround.
- Verify Records – Cross‑check HRIS vs. payroll vs. timekeeping to avoid clerical errors.
- Draft & Review – Prepare COE using template; double‑check spelling of names and dates.
- Signature & Seal – Wet‑ink signature or digitally signed per eCommerce Act.
- Release & Acknowledge – Hand‑deliver or email; secure employee’s acknowledgment receipt (print or electronic).
12. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Can the employer refuse because the employee has unreturned property? | No. Clearance is a separate process and cannot delay the statutory 3‑day window. |
| May the employer include “resigned” or “terminated for cause”? | Yes, but only at the employee’s request. Otherwise, stick to neutral language. |
| Is salary information mandatory? | No. It is optional and best given only when needed (e.g., bank loan). |
| Are weekends counted in the 3 days? | The advisory says “working days”; exclude regular rest days and regular holidays of the company. |
| Can an employee demand a COE in Filipino? | Yes. There is no prescribed language; employers should accommodate reasonable requests. |
13. Practical Tips
For Employees
- File a written request (email suffices) so the 3‑day period is clear.
- Save an electronic copy; re‑printing originals later can be difficult if the company restructures.
- If ignored, send a gentle follow‑up, then escalate to DOLE with a copy of your sent email.
For Employers
- Automate: embed a “Generate COE” button in HRIS that pulls verified employment data.
- Pre‑approve wording to avoid delays awaiting executive sign‑off.
- Keep a running COE ledger for risk‑management audits.
14. Conclusion
Under Philippine labor policy, a Certificate of Employment is not a privilege but a statutory right that survives the employment relationship. Prompt issuance—within three working days of request—protects workers’ mobility and the employer’s own compliance record. By following the straightforward guidelines above, both parties can close the employment chapter cleanly while preserving data privacy and legal peace of mind.
This article is for general information only and does not constitute legal advice. For case‑specific concerns, consult a Philippine labor‑law practitioner or your nearest DOLE Field Office.