In the Philippine labor landscape, the transition of an employee out of a company is governed by specific mandates to ensure the protection of workers' rights. The Department of Labor and Employment (DOLE) issued Labor Advisory No. 06, Series of 2020, to standardize the timeline and procedures for the release of final pay and the issuance of a Certificate of Employment (COE).

I. Scope of Final Pay

Final pay, often colloquially referred to as "back pay," is the sum of all wages and monetary benefits due to an employee, regardless of the cause of termination (whether voluntary resignation or authorized/just causes). It typically includes:

Unpaid salary for the actual number of days worked.
Pro-rated 13th-month pay (Total Basic Salary earned during the year divided by 12).
Cash conversion of unused Service Incentive Leaves (SIL), provided the employee has at least one year of service.
Other benefits stipulated in an individual employment contract or Collective Bargaining Agreement (CBA).
Tax refunds from excess taxes withheld, if applicable.
Cash bonds or other deposits due for return.

II. The 30-Day Rule

Prior to the 2020 advisory, the period for releasing final pay was often a point of contention and delay. Under current DOLE guidelines:

Release of Final Pay: The employer must release the final pay within thirty (30) days from the date of separation from employment.
Contractual Flexibility: While the 30-day rule is the default, a more favorable period stipulated in a company policy or a written contract will take precedence.

III. Certificate of Employment (COE)

Every employee, regardless of the nature of their resignation or termination, has a statutory right to a Certificate of Employment.

Timeline: The employer must issue the COE within three (3) days from the time of the request by the employee.
Content Requirements: The certificate is not a "clearance" or a recommendation letter. It must simply state:
The period of engagement (start and end dates).
The type of work or positions held.
Employer Discretion: The employer is not legally required to include the reason for termination or a "good moral character" clause unless they choose to do so.

IV. The Clearance Process vs. Statutory Deadlines

A common friction point is the "Clearance Process," where an employer withholds pay until company property (laptops, IDs, uniforms) is returned.

The Rule: While employers may require a reasonable clearance process, it cannot be used as a justification to delay the final pay beyond the 30-day mandate.
Accountability: If an employee refuses to return company property, the employer may technically deduct the value of the unreturned property from the final pay, provided the deduction follows the "allowable deductions" rule under the Labor Code. However, the balance of the pay must still be released within the deadline.

V. Enforcement and Remedies

If an employer fails to comply with the 30-day rule for pay or the 3-day rule for the COE, the employee may seek redress through:

Request for Assistance: Filing a request via the Single Entry Approach (SEnA) at the nearest DOLE Field Office.
Labor Inspection: Non-compliance can lead to a formal inspection of the business premises.
Legal Penalties: Habitual or willful refusal to release earned wages may subject the employer to administrative fines and interest on the unpaid amounts.

Key Summary Table

Requirement	Prescribed Timeline	Legal Basis
Final Pay Release	Within 30 days of separation	DOLE Labor Advisory No. 06-20
Issuance of COE	Within 3 days of request	DOLE Labor Advisory No. 06-20
13th Month Pay	Pro-rated based on months worked	P.D. No. 851
SIL Conversion	Only for employees with 1+ yr service	Art. 95, Labor Code