Practical, rights-focused guidance for employees and employers in the Philippine private sector, with brief notes for government workers. This is legal information, not legal advice.

1) What counts as “back pay” (a.k.a. final pay)?

“Back pay” or “final pay” is the total amount due to an employee upon separation from employment for any reason (resignation, termination, end of contract, redundancy, retrenchment, etc.). It commonly includes:

Unpaid salary/wages up to the last day worked (including differentials for night shift, overtime, holiday pay, premium pay).
Pro-rated 13th-month pay (under P.D. 851). Formula (typical): total basic salary earned for the calendar year ÷ 12.
Conversion to cash of unused leaves, notably Service Incentive Leave (SIL) of at least 5 days per year for eligible employees, if unused and company policy/CBAs provide convertibility.
Separation pay, if due (authorized causes or as provided by contract/CBAs/company policy).
- Redundancy / installation of labor-saving devices: at least 1 month pay or 1 month per year of service, whichever is higher.
- Retrenchment / closure not due to serious losses / disease: at least 1 month pay or 1/2 month per year of service, whichever is higher. (A fraction of at least six months is commonly treated as one whole year.)
Tax adjustments (refunds for over-withholding) and statutory deductions/withholding as applicable. Under current tax rules, 13th-month and other benefits are tax-exempt up to the prevailing cap (TRAIN law set this at ₱90,000).
Other accrued benefits (e.g., commissions that have become due, allowances per policy, company-mandated bonuses that have accrued).

Certificate of Employment (COE): issuable upon request after separation; commonly within a few working days.

2) Timelines: When must final pay be released?

Usual benchmark: within 30 calendar days from separation (unless a more favorable company/collective bargaining policy applies).
Clearance procedures are allowed, but they cannot be used to indefinitely delay payment, especially for uncontested entitlements.

If an employer needs additional time due to payroll cutoffs, asset reconciliation, or tax finalization, they should communicate in writing with a reasonable, definite release date.

3) Common reasons for delay (and how to neutralize them)

Unfinished clearance / unreturned assets – Return company property promptly and secure written acknowledgment; request release of uncontested amounts even if a small set-off is pending.
Unverified time/commission data – Provide your own supporting records (timesheets, emails, sales reports) and demand a computation breakdown.
Accounting cutoffs / vendor payroll cycles – These are administrative; they do not justify open-ended deferment. Ask for a dated written commitment.
Dispute over separation cause – Unresolved disputes should not block uncontested items (e.g., earned wages, 13th-month). Reserve disputed items for conciliation or adjudication.

4) Your remedies, step-by-step (Private Sector)

A. Internal resolution (fastest path)

Write a courteous, dated demand to HR/Payroll:
- Identify amounts claimed and the legal/contractual basis.
- Cite the 30-day benchmark and request itemized computation and release date.
- Ask for COE if you need it for your next job.
Escalate to the employer’s authorized officer if HR is unresponsive.

Keep everything in writing (email with read receipts). Your dated demand can interrupt prescription (see §6).

B. DOLE Single-Entry Approach (SEnA) – Conciliation/Mediation

File a Request for Assistance (RFA) with the DOLE Regional/Field Office with jurisdiction over the workplace.
SEnA is informal, free, and quick. The officer will convene the parties for mediation (typically within days to a few weeks).
Outcomes: settlement and immediate payment, or referral to the proper forum if unresolved.

C. NLRC Labor Arbiter – Money Claims / Illegal Dismissal

If SEnA fails, lodge a complaint with the NLRC Regional Arbitration Branch where you worked or where the employer is located.
Typical process: complaint → mandatory conference(s) → position papers → decision.
What you may recover: unpaid wages/benefits, legal interest, attorney’s fees (commonly 10% if unlawful withholding is proven), and damages (moral/exemplary) in cases of bad faith.
If dismissal was unlawful, remedies can include reinstatement or separation pay in lieu, full backwages, and proportional benefits.

D. DOLE Regional Director (visitorial/enforcement powers)

For certain wage law violations discovered during inspection, DOLE may issue compliance orders. This is parallel to, and sometimes faster than, formal litigation.

Barangay conciliation does not apply to labor disputes of this nature; Small Claims Court is also not the proper venue.

5) Legal interest, damages, and fees

Legal interest: Courts generally impose 6% per annum on monetary awards from the date of default (or demand) until full payment.
Attorney’s fees: Often awarded at 10% of the recoverable amount where there is unlawful withholding.
Moral/exemplary damages: Possible if you prove bad faith or malice in the withholding.

6) Prescriptive periods (deadlines to file)

Money claims arising from employer-employee relations: 3 years from accrual (typically from the due date of the final pay).
Illegal dismissal: generally 4 years for the action on the right to be reinstated/compensated, but related money claims still observe the 3-year period.
Interrupting prescription: A written extrajudicial demand can interrupt running time; keep proof of dispatch and receipt.

7) Evidence: What to gather

Employment contract / job offer; company handbook or CBA provisions on final pay.
Resignation letter and employer’s acceptance or termination notice.
Timekeeping/payroll records, payslips, commission schedules, leave balances.
Asset return receipts / clearance forms.
Emails or letters demanding payment; employer’s replies (or lack thereof).
Government IDs; proof of bank account or preferred payment channel.
For separation pay: notices of redundancy/retrenchment/closure and dates received.

8) Computing what you’re owed (quick checklist)

Last salary up to final day worked (daily rate × days actually worked + differentials).
13th-month pay (pro-rated): (Total basic pay earned for the calendar year ÷ 12).
Leave conversion: remaining convertible leave days × daily rate.
Separation pay (if due): apply the appropriate formula and pick the higher between the fixed month(s) and the per-year computation.
Adjustments: commissions matured, allowances earned, tax refund, government loan set-offs (only if authorized).
Interest: 6% p.a. from date of default until full payment (if you end up in a formal claim).
Less authorized deductions only (e.g., unreturned property with agreed values, duly authorized salary deductions).

9) Model timeline you can enforce

Day 0: Last working day.
By Day 30: Employer releases final pay (or earlier per policy/CBA).
Day 31+: If unpaid, send written demand giving 5–10 calendar days to comply.
After grace period: File SEnA; if no settlement, NLRC complaint with position paper and evidence.

10) Sample demand letter (you can copy/paste)

Subject: Demand for Release of Final Pay and Itemized Computation To: [HR/Payroll Head], [Company] Date: [________]

I separated from [Company] effective [last working day]. To date, my final pay has not been released. I respectfully demand payment within [10] calendar days of the following uncontested items:

Unpaid salary from [dates];

Pro-rated 13th-month pay for [year];

Cash conversion of unused leaves (SIL and others);

Separation pay due to [authorized cause, if applicable];

Tax refund and other accrued benefits per company policy/CBA.

Please provide an itemized computation and a definite release date. Continued delay will compel me to seek relief via DOLE SEnA and, if necessary, the NLRC, including legal interest (6% p.a.), attorney’s fees, and damages for unlawful withholding.

Kindly also issue my Certificate of Employment. Thank you. [Your Name] [Contact details]

11) Special notes and edge cases

Probationary/project/seasonal employees: Still entitled to final pay (earned wages, pro-rated 13th-month, leave conversion if applicable). Separation pay depends on the cause of separation or contract/CBA.
Fixed-term contracts: End-of-term is separation; compute ordinary final pay; separation pay depends on cause/policy.
Kasambahay (domestic workers): Governed by the Batas Kasambahay (R.A. 10361). Final pay includes unpaid wages and benefits under the law/contract; DOLE assistance likewise available.
Government employees: Final pay/separation benefits are governed by civil service and budget rules; remedies typically run through agency grievance mechanisms, the Civil Service Commission, and in money claims, the COA. Seek agency HR guidance; timelines can differ from private sector practice.
Company loans and property losses: Deductions must be lawful, documented, and authorized; employers cannot impose arbitrary penalties or withhold the entire final pay absent clear proof and due process.
Non-compete / training bonds: Enforceability depends on reasonableness and proof; they do not justify wholesale non-payment of undisputed wages/benefits.

12) Employer side: How to comply (and avoid disputes)

Publish a written final-pay policy (target: ≤30 days) and honor more favorable CBA/company timelines.
Run a checkout checklist: asset return, timesheet lock, commission cutoffs, leave audit, tax reconciliation.
Communicate clear dates and provide itemized computations.
Release undisputed amounts even if a component is under review.
Document any authorized deductions with employee acknowledgment.
Issue COE promptly.

13) Quick FAQ

Can the employer wait for the next payroll cycle? They can align administratively, but not use it to delay beyond a reasonable timeframe (commonly 30 days) without a definite date.
What if I still owe the company a laptop? Return it and get a receipt. The employer may set-off documented costs, but cannot delay everything indefinitely.
Do I need a lawyer to file at DOLE/NLRC? Not required, though legal help improves pleadings, evidence presentation, and computation of awards (including interest and damages).
What if the employer closed down? You can still pursue officers/owners within legal parameters and claim priority as a worker over certain corporate assets; seek counsel quickly.

14) Action plan you can use today

List each component you’re owed and compute rough figures.
Send the sample demand with supporting proof; ask for itemized computation and a firm date.
If unpaid after your stated deadline, file SEnA at the DOLE office for your worksite.
If unresolved, file at the NLRC and claim legal interest, attorney’s fees, and damages where warranted.

If you want, I can help you (a) draft a personalized demand letter with your figures and dates or (b) turn your documents into an NLRC-style computation sheet you can attach to a complaint.