Here’s a practitioner-style explainer on Employee Entitlement When an Employer Claims “Zero Final Pay” in the Philippines. You asked me not to search, so this relies on settled principles from the Labor Code (as renumbered), DOLE practice/advisories, the 13th-Month Pay Law, the Service Incentive Leave (SIL) rules, and standard jurisprudential tests on deductions, separation pay, and quitclaims.

First principles: “Zero final pay” is the exception, not the rule

Final pay (a.k.a. clearance pay, last pay) is the sum of all earned, vested, and legally due amounts as of separation, minus only lawful deductions. A blanket “₱0.00 final pay” is rarely correct because most employees will have at least (a) pay for days already worked, (b) pro-rated 13th month, and (c) SIL conversion (if unused). Company policy cannot waive statutory entitlements.

Usual components of final pay

Unpaid wages/salary up to last day (including COLA where applicable)
Premiums: overtime, rest day, night shift differential, and holiday pay already earned
Pro-rated 13th month pay (at least 1/12 of basic pay actually earned within the calendar year up to separation)
SIL conversion: unused Service Incentive Leave (5 days/year) is convertible to cash upon separation for covered employees
Separation pay (only when the law or contract provides—see matrix below)
Other vested benefits under CBA/company policy or long, consistent practice (e.g., monetization of vacation leave beyond SIL, allowances payable through last day, sales commissions already earned under the plan)
Mandatory certificates/documents (COE; BIR Form 2316 copy; proof of remittances)—not “pay” but must be released and may not be withheld to pressure the worker

Timing norm: DOLE guidance pegs release of final pay within ~30 calendar days from separation unless a shorter period is set by CBA/policy. Clearance cannot be used to indefinitely delay legally due amounts.

Lawful deductions vs. unlawful withholdings

Allowed, typical deductions (must be legitimate, documented, and properly computed):

Statutory: SSS/PhilHealth/Pag-IBIG, and withholding tax
Authorized in writing and for the employee’s benefit (e.g., salary loan to a bank/coop)
Company cash advances (if there is written acknowledgment of the debt)
Loss/damage to employer property only if: (i) the employee is clearly shown—after due process—to be at fault or negligent; (ii) there is a written agreement or policy known to the employee; and (iii) deductions are reasonable (jurisprudence commonly caps to a fraction of wages per period)
Training bonds only if reasonable, not a restraint of trade, and expressly accepted by the employee in advance; liquidated damages must be pro-rated and not punitive

Not allowed (or commonly abused) deductions:

“Clearance” hostage: withholding all pay “pending clearance” with no specific, adjudicated liability
Uniform/tool “deposits” demanded at hiring or separation without the stringent conditions of law
Penalties/fines that are not authorized by law/CBA or that skip due process
Chargebacks for sales/targets that are speculative/contingent or contrary to the compensation plan
PTA-style “donations”, charity, or miscellaneous fees (not for employee’s benefit)

Key idea: The employer bears the burden to prove a lawful basis (documents + computation + due process) for any deduction. Absent that, full payment of earned/vested amounts is required.

Separation scenario matrix (what you are normally owed)

Scenario	Separation Pay?	13th Month (pro-rated)	SIL Cash Conversion	Other Notes
Resignation (with proper notice)	No separation pay (unless CBA/contract/practice grants)	Yes	Yes (if unused and covered)	Final wages + earned premiums still due
Termination for Just Cause (serious misconduct, etc.)	No separation pay	Yes (pro-rated up to last day)	Yes (if unused and covered)	Deductions for proven loss/damage may apply after due process
Authorized Causes (redundancy; installation of labor-saving devices)	Yes: ≥ 1 month pay per year of service (or minimum 1 month, whichever higher)	Yes	Yes	30-day prior written notice to DOLE & employee required
Authorized Causes (retrenchment; closure not due to serious losses; disease not curable within 6 months)	Yes: ≥ ½ month pay per year of service (minimum 1 month)	Yes	Yes	Disease termination requires medical certification
Project/Seasonal Completion	Typically No separation pay (unless provided by contract/CBA/practice)	Yes	Yes	Last day is project end/date certain
Probationary end—failure to qualify	No separation pay	Yes	Yes	Due process on notice/standards

“Month pay per year” is computed on the latest salary rate. Fraction of at least 6 months = 1 year for these computations.

13th month & SIL: two items employers often miss

13th Month: Due to all rank-and-file (and, by practice, many companies extend to all employees). It is pro-rated for the year of separation: Formula (basic): (Total basic salary earned Jan-separation date) ÷ 12.
SIL (5 days): Cash conversion is due upon separation if unused and employee is covered (small set of exemptions exist—e.g., field personnel whose hours cannot be determined with reasonable certainty, if not otherwise granted leave by policy). If company grants a richer leave program in lieu of SIL, follow the policy; consistent practice can vest cash conversion rights.

“Zero because of liabilities”: what must be shown

If the employer claims your last pay nets to zero due to liabilities, ask for all of the following in writing:

Itemized statement of gross final pay (each component)
Itemized deductions (each legal ground, document, and computation)
Proof of due process for any fault-based deduction (notice, explanation, finding)
Your written consent (for third-party/benefit deductions or training bonds)
Dates when earned items accrued (e.g., overtime logs, leave ledger)

If they cannot produce these, the “₱0.00” position is almost certainly non-compliant.

Quitclaims, clearances, and “no-claim/no-pay” tactics

A quitclaim is not per se void, but courts strictly scrutinize them: it must be voluntary, for a reasonable consideration, and not against law or public policy. You cannot waive statutory minimums (wages, 13th month, SIL conversion, legally due separation pay).
Clearance processes cannot be used to indefinitely hold wages or statutory benefits.
“No clearance, no COE/2316” is improper. COE must be issued upon request within a short definite period; BIR Form 2316 copy is a statutory record you’re entitled to.

Taxes and government remittances (quick notes)

Separation benefits due to involuntary causes (e.g., redundancy, retrenchment) are tax-favored; purely voluntary resignation benefits are generally taxable. (Exact tax treatment depends on facts and current BIR rules.)
Employers must remit SSS/PhilHealth/Pag-IBIG contributions properly; shortfalls do not justify docking your final pay beyond the lawful share.

Practical playbook (employee)

Step 1 — Demand an itemized final pay computation (written). Give a short deadline (e.g., 5 business days). Ask for gross items and the legal basis for each deduction.

Step 2 — Offer to return company property / settle acknowledged advances. Remove excuses. Return assets with a turnover receipt; propose a reasonable schedule for any uncontested cash advance.

Step 3 — Escalate via DOLE SEnA. File a Request for Assistance (RFA) at the DOLE Regional/Field Office where you worked. SEnA often results in on-the-spot computations and release commitments.

Step 4 — NLRC money claim (if needed). If unresolved, file a complaint for money claims (wages, 13th month, SIL, separation pay, damages). Prescription: 3 years from accrual for money claims. Attach payslips, time sheets, employment contract, notices, and your demand letter.

Step 5 — Interest & damages. For unlawful withholding, seek legal interest (judicial rate) on amounts due, and where facts support, nominal/moral/exemplary damages and attorney’s fees (10%) under Article 111 (now renumbered) of the Labor Code.

Practical playbook (HR/compliance)

Maintain a final pay checklist and release within the policy window (≈ 30 days).
Use standard computation sheets signed by payroll and HR; give the leaver a copy.
For any deduction beyond statutory/authorized, ensure due process and paper trail.
Never condition COE or 2316 on quitclaims or clearance.
Keep payroll records for at least 3 years.

Worked example (stylized)

Facts: Resigned effective May 15. Basic pay ₱30,000/month; no OT; 2 unused SIL days (out of 5); no other leaves; no proven liabilities.

Unpaid salary (May 1–15): ₱30,000 × 15/30 = ₱15,000
13th month (pro-rated Jan 1–May 15): Earned basic Jan–Apr = ₱120,000; May 1–15 = ₱15,000 ⇒ total ₱135,000 ÷ 12 = ₱11,250
SIL conversion: Daily rate = ₱30,000 ÷ 26 = ₱1,153.85 × 2 days = ₱2,307.70
Gross final pay: ₱28,557.70
Less lawful contributions/tax for the period only → Net pays out. A “₱0.00 final pay” here would be indefensible without real, documented offsets.

Template: Final Pay Demand Letter (concise)

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

I separated from employment effective [date]. Please provide, within 5 business days, an itemized computation of my final pay, including unpaid wages, pro-rated 13th month, SIL conversion, and any separation pay due, as well as an itemization and legal basis for any deductions.

Kindly release all undisputed amounts immediately. If you contend that my final pay is ₱0.00, state the specific grounds, attach supporting documents, and show compliance with due process for any fault-based deductions.

Absent compliance, I will seek assistance through DOLE SEnA and pursue appropriate money claims with interest and attorney’s fees.

[Name / Signature / Contact]

Bottom line

Zero final pay is rarely lawful. Most workers are owed at least earned wages, pro-rated 13th month, and SIL conversion, plus separation pay in authorized-cause cases.
Deductions must be specifically authorized by law or in writing, or supported by due-process findings; otherwise, they’re illegal withholdings.
Use written demand → DOLE SEnA → NLRC as your escalation ladder, and mind the 3-year prescriptive period for money claims.

If you share your exact facts (last day, monthly rate, unused SIL, deductions claimed, reason for separation), I can draft a personalized computation sheet and a tailored demand you can send to HR today.