Eligibility for a Certificate of Employment (COE) After Termination in the Philippines
A comprehensive legal primer written for HR practitioners, lawyers, and employees alike. (Updated to July 2025; for informational purposes only — not a substitute for independent legal advice.)
1. What Exactly Is a Certificate of Employment?
A Certificate of Employment is a simple document, usually one page, that confirms the fact of a worker’s employment. By established practice and now by regulation, it states at least:
| Required particulars | Optional / at employee’s request |
|---|---|
| • Full name of employee | • Detailed job description |
| • Position/title(s) held | • Performance commendations |
| • Inclusive dates of employment | • Reason for separation (rarely inserted) |
| • Final pay or last‑drawn salary (basic & allowances) | • Signature of HR Head or authorized officer |
Negative remarks, disciplinary records, or subjective assessments have no place in a COE. Employers who insert them risk claims for moral damages, libel, or data‑privacy violations.
2. Legal Foundations
| Instrument | Key provision on COE |
|---|---|
| Labor Advisory No. 06‑20 (DOLE, 18 March 2020) | “A Certificate of Employment shall be issued by the employer within three (3) business days from the time of request by the employee or former employee.” Applies regardless of employment status or manner of separation. |
| Department Order No. 174‑17 (Rules on Contracting/Sub‑contracting), § 16 | Contractors and subcontractors “shall issue” a COE to every employee upon separation. |
| Labor Code, Art. 5 | Empowers DOLE to issue regulations like L.A. 06‑20. |
| Supreme Court jurisprudence | Consistently treats COE as a basic right, e.g., Philippine Daily Inquirer v. Magtibay (G.R. 181681, 9 Sept 2015); SkyCable Corp. v. Heredia (G.R. 195649, 3 Feb 2016). Refusal may constitute constructive dismissal or unfair labor practice. |
3. Who Is Always Entitled?
- Regular employees – even if dismissed for just cause.
- Probationary, casual, project‑based, seasonal, or fixed‑term employees – upon end of engagement.
- Employees separated for authorized causes (redundancy, retrenchment, closure, disease).
- Employees who resigned voluntarily, whether with notice or via “instant” resignation.
- Dismissed employees under preventive suspension – a COE must still be given after the dismissal becomes final.
Rule of thumb: If you ever appeared on the employer’s payroll, you qualify.
4. Common Misconceptions Debunked
| Myth | Legal Reality |
|---|---|
| COE may be withheld until clearance is signed. | L.A. 06‑20 forbids conditioning issuance on clearance, quit‑claim, or return of company property. Clearance can proceed separately. |
| An employee dismissed for serious misconduct loses the right. | No. The right to a COE is independent of the reason for separation. |
| Employers may charge a “processing fee.” | Prohibited. DOLE says issuance is free of charge. |
| COE may include a “for future reference only” or “terminated for theft” note. | Impermissible unless the employee expressly asks for the reason for separation. Otherwise, stick to neutral factual data. |
5. Procedural Guide for Employees
Make a written request — e‑mail to HR or a simple letter suffices.
Wait up to three (3) business days.
Follow up politely; keep records of requests and responses.
If still refused:
- File a SEnA Request for Assistance (free conciliation) at the DOLE field office; or
- File a complaint for money claims and damages before the NLRC.
Administrative fines (₱10,000–₱100,000) may be imposed on non‑compliant employers under Art. 288‑E of the Labor Code.
6. Drafting & Formatting Tips for Employers
- Use company letterhead, date, and reference number.
- Identify the authorized signatory (HR Manager or Corporate Secretary).
- Provide one original; send PDF copy by e‑mail when practicable.
- Retain a file copy for at least five (5) years under DOLE Visitorial and Data‑Privacy rules.
7. Special Situations
| Scenario | Practical treatment |
|---|---|
| Project completion | Issue COE indicating project name and duration. |
| End of service for migrant (OFW) returnees | Phil. Overseas Employment Agency often asks for COE; same 3‑day rule applies. |
| Company bankruptcy/closure | The liquidator or receiver must still issue COE; failing that, DOLE can compel. |
| M&A / transfer of business | New owner must honor COE requests for service rendered under predecessor, or coordinate with the former HR. |
8. Remedies for Inaccurate or Defamatory COEs
- Written correction request to HR.
- Data Privacy Act complaint with the NPC if personal data is misused.
- Civil action for damages if COE contains libelous statements.
- Labor complaint for moral and exemplary damages plus attorney’s fees.
Courts have awarded ₱50,000–₱200,000 moral damages in egregious cases where employers weaponized the COE against workers.
9. Relationship to Other Exit Documents
| Document | Purpose |
|---|---|
| Final Pay computation | Shows exact amounts due; must be released within 30 days of separation (LA No. 06‑20 rev. 2022). |
| BIR Form 2316 | Tax certificate; needed for next employer’s tax credit. |
| Clearance | Confirms return of assets; has no bearing on COE entitlement. |
| Certificate of Good Moral Character | Optional, separate from COE. |
10. Frequently Asked Questions
- Can I ask for multiple copies? – Yes; the law does not limit the number.
- May the employer refuse because I owe them money? – No; debt collection is separate.
- Does the 3‑day period include weekends? – Business days only.
- Can a COE be electronic? – Yes, if electronically signed under the E‑Commerce Act.
11. Key Take‑Aways
- Universality: Every employee—past or present—has a statutory right to a COE, whatever the cause of termination.
- Speed: Employers must release it within three (3) business days of request, no strings attached.
- Neutrality: It should contain factual employment data only; negative remarks invite liability.
- Enforcement: DOLE conciliation, NLRC complaints, fines, and damages are available for refusal or defamatory content.
Disclaimer
This article summarizes Philippine law as of July 28 2025. Legislative amendments, new advisories, or court decisions after this date may change the rules. Always consult a qualified Philippine labor lawyer for specific cases.