The right to receive full and timely payment for work performed is one of the most fundamental protections under Philippine labor law. When an employer fails or refuses to pay regular wages, overtime pay, holiday pay, night shift differential, 13th-month pay, service incentive leave pay, or other monetary benefits, the employee — even after separation from the company — retains the full right to recover these amounts. This article comprehensively explains the legal basis, prescriptive period, procedure, evidence requirements, computation rules, common defenses employers raise, and practical strategies for successfully claiming unpaid wages and overtime in the Philippines.

Legal Framework

The primary law is the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and its implementing rules:

Article 82–96 – Coverage and hours of work
Article 87 – Overtime work and overtime pay
Article 88–90 – Undertime offset, emergency overtime
Article 93 – Holiday pay and premium pay
Article 94 – Night shift differential
Article 95 – Service incentive leave
Article 97 – Definition of “wage” (includes overtime pay, holiday pay, etc.)
Article 100 – Non-diminution of benefits
Article 113–115 – Wage payment rules (time, place, manner)
Article 116 – Withholding of wages prohibited
Article 291 (now Article 306 in some renumbered editions) – Three-year prescriptive period for money claims
Republic Act No. 6727 – Wage Rationalization Act
Republic Act No. 10151 – Night worker protection
Republic Act No. 10757 – Amendment on service incentive leave for kasambahays (not relevant here)
DOLE Department Order No. 235-22 (latest consolidated guidelines on overtime as of 2025)

All rank-and-file employees in the private sector are covered. Managerial employees, field personnel, piece-rate workers without fixed hours, and domestic helpers have different rules.

What You Can Claim Even After Resignation or Termination

Unpaid regular wages (including underpayment of minimum wage)
Overtime pay (regular OT, rest day OT, holiday OT, special holiday OT)
Night shift differential (10% for work between 10:00 p.m. and 6:00 a.m.)
Holiday pay (regular and special holidays)
Service incentive leave pay (5 days with pay per year, convertible to cash if unused)
13th-month pay (1/12 of total basic salary earned in the calendar year)
Premium pay for work on rest days or special holidays
Emergency overtime pay
Salary differential if you were paid below the applicable regional minimum wage
Illegal deductions (only lawful deductions are allowed under Article 113)
Proportionate 13th-month pay and SIL for the fraction of the year worked

If the separation was illegal or constituted constructive dismissal, you may also claim backwages, separation pay, moral/exemplary damages, and 10% attorney’s fees on top of the above.

Prescriptive Period: Three (3) Years Only

Under Article 291 of the Labor Code, all money claims arising from the employer-employee relationship prescribe in three (3) years from the time the cause of action accrued.

Overtime pay accrues on the date the overtime work was rendered.
13th-month pay accrues on December 24 of the year (or upon separation if earlier).
Holiday pay accrues on the date of the holiday.
Service incentive leave accrues on the employee’s anniversary date.

Important Supreme Court rulings:

Serrano v. Gallant Maritime (2009) and subsequent cases clarified that the three-year period applies per violation.
If you file on December 3, 2025, you can still claim unpaid overtime rendered as far back as December 4, 2022. Anything before that is already barred.

File as soon as possible. The period is interrupted only by filing the action or by written extrajudicial demand acknowledged by the employer.

Jurisdiction and Proper Venue

Labor Arbiters of the National Labor Relations Commission (NLRC) have original and exclusive jurisdiction over money claims arising from employer-employee relations, regardless of amount (even if millions of pesos).

The Regional Arbitration Branch that has jurisdiction is:

Where the claimant resides, OR
Where the employer holds office/does business, OR
Where the cause of action arose (place of work)

You may choose the most convenient.

Mandatory Procedure (As of 2025)

Step 1: Single Entry Approach (SEnA) – Mandatory 30-Day Conciliation

Under Republic Act No. 10396, almost all labor cases must first undergo the Single Entry Approach at the DOLE Regional Office.

File a Request for Assistance (RfA) (free form, available online or at DOLE).
DOLE will schedule a conciliation conference within 30 days.
If settlement is reached → enforceable Settlement Agreement.
If no settlement → DOLE issues Certificate of Final Action (CFA), allowing you to proceed to NLRC within 10 days.

Exception: You may bypass SEnA and go directly to NLRC only in cases of illegal dismissal with immediate reinstatement prayer or when the claim is already beyond conciliation stage.

Step 2: File Formal Complaint with NLRC Labor Arbiter

After SEnA, file the verified Complaint (use NLRC forms) with:

Annexes (payslips, DTR, contract, demand letter, etc.)
Certificate to File Action from SEnA (if applicable)
Filing fee: None if claim ≤ ₱400,000; minimal if higher (based on schedule)

Submit position paper, reply, rebuttal as required. Hearings are summary; most cases are decided on pleadings.

Labor Arbiter decision is appealable to the NLRC Commission within 10 calendar days.

NLRC Commission decision is appealable via Rule 65 Petition for Certiorari to the Court of Appeals within 60 days.

CA decision may be elevated to Supreme Court via Rule 45.

Evidence Required and Burden of Proof

The employee must prove:

Existence of employer-employee relationship (easy if you have ID, payslips, SSS records).
Fact of overtime rendered or unpaid benefit.

Supreme Court doctrine (jurisprudence constante):

If the employer has inaccurate, unreliable, or no time records, the burden shifts to the employer to disprove the employee’s claim (Legend Hotel v. Realuyo, G.R. No. 153511, 2012; numerous subsequent cases).
Employee’s lone affidavit + corroborative evidence (text messages, emails, guard logs, co-employee affidavits) is often sufficient.
Payrolls and DTRs submitted by the employer are scrutinized heavily; discrepancies favor the employee.

Common winning evidence:

Daily time records (even if altered, discrepancies help you)
Bundy cards / biometric logs
Payslips showing underpayment
Company ID, contract, SSS contributions printout
Email or text messages proving overtime (“Mag-overtime ka muna”)
Affidavits of co-workers
Guard security logs
Company memos requiring overtime

How Overtime Pay Is Corrected Computed (DOLE Formula)

Hourly rate = Monthly rate × 12 ÷ (365 or applicable factor ÷ 8)

Standard formulas (2025 DOLE Explanatory Bulletin):

Ordinary day overtime
(Hourly rate × 125%) × number of OT hours
Rest day / Special holiday overtime
(Hourly rate × 130%) × number of hours, then +30% if over 8 hours
Regular holiday overtime
(Hourly rate × 200%) for first 8 hours, then +30% premium on the 200% for OT hours
Regular holiday falling on rest day
(Hourly rate × 260%) for first 8 hours, then +30% on the 260%

Night shift differential (10%) is computed separately and added on top.

Facilities (free meals, housing) are deducted from wage only if stipulated and actual cost proven.

Common Employer Defenses (and How They Usually Fail)

“You were a managerial employee” → Must prove policy-making authority; mere title is not enough (Supreme Court has ruled against this defense countless times).
“Overtime was compensated by comp time” → Illegal unless covered by valid compressed workweek agreement approved by DOLE.
“You signed a waiver/quitclaim” → Quitclaims are scrutinized; if grossly disadvantageous, void (More Maritime Agencies v. NLRC, etc.).
“Company policy is no OT pay” → Void; violates Labor Code.
“You were paid on pakyaw basis” → Pakyaw workers are still entitled to OT, holiday pay, SIL unless purely output-based with no time element.

Awards You Can Expect

Full amount of unpaid wages/overtime + legal interest (6% per annum from finality until paid — Bangko Sentral rules)
10% attorney’s fees on the total award (mandatory under Article 111)
Moral and exemplary damages if bad faith is proven
Backwages and separation pay if illegal/constructive dismissal is also claimed

NLRC monetary awards for backwages and benefits are not subject to income tax (BIR Ruling DA-079-05, reiterated in 2024).

Enforcement of Judgment

Once final and executory:

File Motion for Writ of Execution with Labor Arbiter
Sheriff will garnish bank accounts, levy vehicles, equipment, real property
Corporate officers can be held solidarily liable if bad faith or corporate assets are insufficient (Mama v. CA, 2020; Nyco Sales v. BA Finance)

Criminal liability: Non-payment of wages is punishable under Article 116 (withholding) and RA 8188 (illegal deduction), but prosecution is rare and separate from money claim.

Practical Tips from Labor Lawyers (2025)

File immediately — do not wait for the third year.
Demand in writing first (email/text) — strengthens bad faith claim.
Get your 201 files, payslips, DTRs before or immediately after resignation (file Data Privacy request if needed).
Join co-employees in one complaint — stronger case, shared expenses.
Consult a PAO lawyer or labor NGO (Sentro, FFW, etc.) — many handle cases for free or success-fee basis.
Never sign a quitclaim without consulting a lawyer.
If the company is already closed, sue the owners/officers solidarily.

Recovering your hard-earned wages and overtime is your constitutional and statutory right. The Philippine labor justice system, despite delays, overwhelmingly favors workers when evidence is presented properly. Do not allow your former employer to profit from violating the law. File your claim now.