Claiming Unpaid Wages from a Former Employer (Philippine Context)

This is general information for workers and employers in the Philippines. It’s not a substitute for advice from a licensed lawyer or DOLE officer who can assess your specific facts.

1) What counts as “unpaid wages”?

“Unpaid wages” cover any amount you earned under the law, your employment contract, company policy, or a collective bargaining agreement (CBA) that wasn’t given to you on time and in full. Common items include:

Basic pay (including underpayment vs. the applicable regional minimum wage)
Overtime pay (work beyond 8 hours/day)
Night shift differential (work between 10:00 p.m. and 6:00 a.m.)
Premium pay for work on rest days, special days, and holidays
Regular holiday pay (even if unworked, subject to the “present-or-paid on the working day prior” rule)
13th month pay (at least 1/12 of basic salary actually earned in a calendar year)
Service Incentive Leave (SIL) conversion (up to 5 days per year, if not used and you’re covered)
Final pay items upon separation (last salary, prorated 13th month, SIL conversion, and any other payable benefits)
Separation pay (only when the law or your contract/CBA requires it—e.g., certain authorized causes, not ordinary resignation)

Note: Managers and certain exempt employees (e.g., bona fide managerial employees, “field personnel” whose work hours cannot be determined with reasonable certainty) may not be entitled to overtime/premium pay rules, but minimum wage, 13th month (with limited exceptions), and other standards may still apply depending on the role.

2) Your core legal rights (quick primer)

Timely payment: Wages should be paid at least twice a month at intervals not exceeding 16 days. Final pay must generally be released within 30 calendar days from separation (or sooner, if company policy/CBA says so). Certificates of Employment must be issued promptly upon request.
No unlawful deductions: Only deductions authorized by law (tax, SSS, PhilHealth, Pag-IBIG), a court/agency, or with your written consent and for a lawful purpose, are allowed.
Burden of proof: In wage disputes, the employer must prove payment (e.g., payrolls, payslips, vouchers, signed releases).
Quitclaims/releases: Not automatically fatal to your claim. Courts can set aside quitclaims that were not voluntary, were obtained through fraud/coercion/mistake, or are unconscionably low.
Minimum wage underpayment has teeth: Willful noncompliance with minimum wage can trigger double indemnity (paying back the deficiency x2) and penalties under wage laws.
Anti-retaliation: It’s unlawful to punish an employee for asserting statutory labor standards.

3) Which forum should you use?

There are two main tracks. Many workers use both, one after the other, depending on strategy and facts.

A. DOLE (Department of Labor and Employment)

SEnA (Single-Entry Approach)
- Mandatory first-stop conciliation–mediation for most labor issues.
- You file a Request for Assistance (RFA) at a DOLE office. A facilitator helps both sides try to settle within a short, time-bound window. Filing an RFA generally interrupts/tolls prescription (see Section 6).
- If you settle, terms go into a written agreement (enforceable like a judgment).
Labor Standards Enforcement / Compliance Orders
- Through inspections and visitorial/enforcement powers, DOLE can order employers to comply with labor standards (e.g., pay wage deficiencies).
- If the employer raises complex factual/legal issues not readily verifiable by inspection, DOLE may refer the case to the proper adjudicatory body (usually the NLRC Labor Arbiter).

Best for: Straightforward wage underpayment/nonpayment, documentary payroll issues, or where quick conciliation could work.

B. NLRC (National Labor Relations Commission)

Labor Arbiters have original jurisdiction over money claims arising from employment (and illegal dismissal with backwages/reinstatement or separation pay).
After filing, there’s mandatory conciliation/mediation, then submission of position papers and evidence. The Arbiter decides, and decisions are appealable to the NLRC Commission; further review is via Rule 65 petition (certiorari) to the Court of Appeals.

Best for: Cases coupled with illegal dismissal, larger/complex money claims, or when DOLE conciliation fails and you want a binding adjudication.

Barangay conciliation is not required for labor disputes; they’re outside the Katarungang Pambarangay system.

4) Deadlines (prescriptive periods)

Money claims (unpaid wages, 13th month pay, premiums, etc.): 3 years from when the cause of action accrued (typically when payment was due but not made).
Illegal dismissal: 4 years (action for “injury to rights”).
Interruptions: Filing at DOLE (e.g., SEnA RFA) or at the NLRC typically interrupts prescription while the case is pending.

Act early. Even if you’re still negotiating, consider filing to protect the clock.

5) Practical roadmap (step-by-step)

Organize your proof
- Employment contract/offer, company handbook or policy, pay slips, payroll records, time records, schedules, emails/chats/texts, IDs and HR memos, separation papers (clearance, quitclaim, COE), and any demand letters.
Compute what you’re owed (see Section 7 for formulas)
Send a demand (optional but helpful)
- Short letter/email requesting full payment within a set period (e.g., 5–10 days), attaching your computation and key proof. Ask them to reply in writing.
File SEnA (DOLE)
- Start conciliation–mediation. If you settle, you’re done. If not:
Choose your next step
- DOLE: pursue standards compliance/inspection route (useful for payroll underpayment involving several workers).
- NLRC: file a complaint (especially if you also claim illegal dismissal).
During the case
- Be responsive to notices; attend conferences; meet filing deadlines.
- Keep originals safe; submit clear copies; highlight underpayments using simple tables.
After decision/settlement
- If favorable but unpaid, enforcement may involve a writ of execution (garnishment/levy) or DOLE compliance orders.
- Employers appealing monetary awards to the NLRC usually need a cash/surety bond roughly equal to the award; employees don’t post a bond to appeal.

6) What counts as “final pay,” and when must it be released?

Final pay typically includes:

Unpaid basic salary up to last day worked
Prorated 13th month pay
SIL conversion (if covered and unused)
Any wage differentials (e.g., minimum wage gap, night premium, OT, holiday premium)
Separation pay if legally due (e.g., redundancy, retrenchment, closure, disease—not mere resignation)
Contract/CBA benefits that vest at separation

Timing: As a general rule, final pay should be released within 30 calendar days from separation, unless a more favorable company policy/CBA provides a shorter period. Employers may require clearance, but clearance should not be used to delay beyond this window without lawful basis.

7) How to compute common claims (simplified)

Use your basic wage rate (exclude allowances that aren’t part of “basic pay,” unless your policy/CBA says otherwise). Keep a clean worksheet—arbiters and DOLE officers appreciate concise tables.

Key building blocks

Hourly rate (for an 8-hour day) = Daily rate ÷ 8
Overtime (OT) = Hourly rate × 1.25 × OT hours
- If rest day/special day: Hourly rate × (1.30) × 1.25 × hours
- If regular holiday: Hourly rate × (2.00) × 1.25 × hours
Night shift differential (NSD) = Hourly rate × 0.10 × hours worked between 10:00 p.m.–6:00 a.m.
Rest day work (first 8 hours) = Daily rate × 1.30
Special (non-working) day worked (first 8 hours) = Daily rate × 1.30
Regular holiday worked (first 8 hours) = Daily rate × 2.00
- If regular holiday falls on rest day: Daily rate × 2.60
13th month pay = (Sum of basic monthly salaries actually earned within the year) ÷ 12
- For daily/hourly workers, compute based on total basic earnings for the year ÷ 12
SIL conversion (if covered): Daily rate × unused SIL days (up to 5/year)
Minimum wage differentials: (Applicable minimum wage − your paid basic wage) × affected days/hours
- For minimum wage underpayment, remember the possibility of double indemnity on the difference.

Formulas vary for monthly vs. daily-paid, 5-day vs. 6-day workweeks, and whether allowances are included by policy/CBA. If in doubt, show both versions and indicate which policy applied.

8) Evidence that helps you win

Official records: Timecards, biometrics logs, schedules, DTRs, payroll registers, payslips, remittance reports
Written admissions: Emails/texts/chats from managers/HR acknowledging unpaid items or promising dates
Comparators: Schedules vs. payslips showing hours worked but no matching OT/NSD premiums
Witnesses: Co-workers who can attest to the hours/arrangements
Your notes: Keep a contemporaneous log (dates, hours, who assigned work)

Remember: once you show nonpayment/underpayment, the employer must prove proper payment.

9) Taxes and government contributions

13th month and other benefits are tax-exempt up to the statutory cap in effect for the year; amounts beyond the cap are taxable.
Wages are subject to withholding tax based on BIR tables.
Lawful contributions (SSS, PhilHealth, Pag-IBIG) must have actual remittances; employers shouldn’t withhold without remitting.

10) Special worker groups (quick notes)

Kasambahay (Domestic Workers): Covered by a specific law on contracts, minimum wage, and benefits. Wage claims may still go through DOLE/NLRC; barangay conciliation may be used for certain disputes, but labor standards enforcement remains under DOLE/NLRC.
Project/seasonal/casual/part-time/commissioned workers: Still employees if labor law’s four-fold test (selection and engagement, payment of wages, power to dismiss, control test) points to an employment relationship; some premium pay rules may vary with true field status.
Contractors/“endo”/labor-only contracting: If labor-only contracting exists (the contractor lacks substantial capital or investments and the principal controls the work), the principal can be deemed the employer for wage liabilities.

11) Common defenses—and how to respond

“You’re managerial/field—no OT.”
- Check your job duties vs. your actual work. Titles don’t control; functions do. Provide proof of close supervision/schedules/approvals to refute “field” status.
“You signed a quitclaim.”
- Challenge voluntariness, show disparity (tiny payoff vs. big claim), or circumstances of pressure/misrepresentation.
“Clearance not done.”
- Clearance is administrative; it can’t justify indefinite withholding of statutory wages/benefits.
“You owe us losses.”
- Deductions for losses require due process and strict legal bases; they’re not a free pass to withhold wages.

12) Remedies, costs, and appeals

SEnA: No filing fee. Quick timelines. Result is a settlement or referral.
NLRC: Employees generally don’t pay upfront docket fees; assessed fees are charged against awards or the liable employer.
Appeals:
- To NLRC Commission (usually 10 calendar days from receipt of the Arbiter’s decision).
- Employers appealing monetary awards must post a bond roughly equal to the award.
- Further review is via Rule 65 petition to the Court of Appeals (strict grounds and timelines).

13) Sample demand letter (use and adapt)

Subject: Demand for Unpaid Wages and Final Pay Dear [Employer/HR], I formerly worked as [position] from [start date] to [end date]. As of today, the following remain unpaid: (1) final salary from [dates], (2) prorated 13th month, (3) [OT/NSD/holiday premiums], and (4) [SIL conversion/others], totaling ₱[amount] (see attached computation). Kindly release the full amount within [5/10] days from receipt of this letter and advise when I may pick up/where to receive payment. If there are concerns, please respond in writing. Otherwise, I will be constrained to seek assistance from DOLE/NLRC. Thank you. Sincerely, [Name, address, contact info]

14) Clean computation template (mini-checklist)

Coverage period: [from – to]
Basic wage rate: [daily/hourly/monthly]
Regular days worked & unpaid: [# days/hrs] × rate
OT: [# hours] × rate × 1.25
NSD: [# hours (10 p.m.–6 a.m.)] × rate × 0.10
Rest day: [# days/hrs] × rate × 1.30
Special day: [# days/hrs] × rate × 1.30
Regular holiday: [# days/hrs] × rate × 2.00 (or × 2.60 if also a rest day)
SIL conversion: [unused days] × daily rate
13th month: total basic earnings for year ÷ 12 × prorate if needed
Minimum wage differentials: [difference] × [affected days/hrs]
Less: lawful deductions only (tax, SSS, PhilHealth, Pag-IBIG)
Total claim: ₱______

15) Tips to avoid pitfalls

Don’t wait—file early to stop prescription.
Keep communications written and professional.
Be open to settlement if it’s fair; insist on clear, enforceable terms and actual payment (e.g., manager’s check, payroll credit) before signing releases.
If you’re a group, consider consolidated action—it can strengthen evidence and leverage.
For employers: audit payroll practices, train HR/payroll on wage rules, and document payments meticulously.

Final word

Claiming unpaid wages in the Philippines is designed to be worker-friendly, with quick conciliation (SEnA), robust DOLE enforcement powers for standards, and NLRC adjudication for fuller disputes (especially illegal dismissal). Prepare your documents, compute carefully, use the correct forum, and mind the deadlines. If your situation is complex, consult a labor lawyer or DOLE/NLRC officer to tailor the strategy to your facts.