How to File a Complaint for Unpaid Salary Against an Online Tutorial Company in the Philippines (A Comprehensive Legal Guide, 2025 edition)

1. Why this guide matters

The surge of work-from-home tutoring platforms has made it easy for Filipinos to earn without leaving home—but it has also blurred traditional lines of accountability. When pay stops coming on time (or at all), many tutors are unsure where to turn. This article walks you through every legal remedy available under Philippine law as of 8 June 2025, from the first demand letter all the way to the Supreme Court.

2. Foundations: What the law says about wages

Source of obligation	Key points
1987 Constitution (Art. XIII, Sec. 3)	The State shall guarantee workers a living wage and just share in the fruits of production.
Labor Code of the Philippines (Pres. Decree 442, as amended)	Defines wage, mandates frequency of payment (at least twice a month), prohibits unauthorized deductions, and classifies non-payment as an unlawful labor practice.
Telecommuting Act (RA 11165, 2018) + DOLE IRR	Confirms that remote employees enjoy the same labor standards and social security benefits as on-site staff.
Department Order (DO) 174-17	Regulates legitimate job contracting; labor-only contracting makes the principal (the tutorial platform) the direct employer.
Penal sanctions (Articles 303-305, formerly 288-290)	Non-payment of lawful wages may be punished by a fine of ₱40,000 – ₱400,000 and/or imprisonment of up to 4 years.

3. Are you an “employee” or an “independent contractor”?

Before filing, determine the nature of your engagement, because procedure and venue differ.

3.1 The four-fold test (jurisprudence)

Selection and engagement of the worker
Payment of wages
Power to dismiss
Power of control (the most decisive) – Does the company dictate how the lesson is taught, provide teaching materials, impose schedules, and penalize tardiness?

If all are present, you are an employee—even if you signed a “freelance” or “consultancy” contract, or the company is incorporated abroad.

3.2 Consequences

If you are an employee	If you are an independent contractor
Labor Code applies. You can use DOLE/SEnA/NLRC mechanisms; employer must remit SSS, PhilHealth, Pag-IBIG, and withhold tax.	Governed by Civil Code and contract; you sue for sum of money or specific performance in regular courts or through arbitration, not NLRC.
Wage claim prescribes in 3 years (Art. 306).	Ordinary civil action prescribes in 6 years (Art. 1145) unless contract sets a shorter term.

Tip: Even if the platform labels you “self-employed,” gather evidence of control (e-mails setting class scripts, penalties for deviating from slides, etc.) to prove employee status.

4. Step-by-step remedies for employees

4.1 Internal demand

Send a formal demand letter (e-mail or registered mail) politely invoking Art. 102 of the Labor Code.
Give a 5- to 10-day deadline to cure. Keep proof of receipt (screen-shots or registry return card).
If the company pays, stop here; if not, proceed.

4.2 Single-Entry Approach (SEnA)

Where to file: Any DOLE Field or Provincial Office (physical) or via the DOLE Single-Entry Assistance Desk Online (SEADOLE) Portal.
Fee: None.
What happens: Within 7 working days you’ll be assigned a Conciliator-Mediator who will summon the company to a mandatory 30-calendar-day mediation. Most small wage disputes settle here.
Possible outcomes:
- Quitclaim and Release (be sure it fully states amount paid, inclusive of 13th-month pay and interest); or
- Referral to NLRC if unresolved.

4.3 Money-Claims Jurisdiction of the Regional Director (Art. 129)

When used: If your total claim (exclusive of damages) does not exceed ₱5,000 and you do not seek reinstatement.
Advantage: Summary proceedings—position paper only; no lawyers required.
Limitation: Amount cap.

4.4 National Labor Relations Commission (NLRC) Arbitration Branch

If the amount exceeds ₱5,000 or you want reinstatement or damages:

Filing: Submit a Verified Complaint (form available at NLRC) + Statement of Facts + attachments (contracts, chat logs, screenshots of wallet balance, bank statements).
Raffle and summons: Within 2 days, case is raffled; summons served for mandatory conciliation-conference.
Pleadings: If still unresolved, parties file Position Papers + reply.
Decision: Labor Arbiter must decide within 30 calendar days from submission for decision.
Appeal: To NLRC Commission en banc within 10 calendar days (cash or surety bond equal to monetary award if employer appeals).
Petition for Certiorari: Court of Appeals (Rule 65) within 60 days; further review at the Supreme Court via Rule 45.

4.5 Execution of judgment

Once the decision is final and executory:

Writ of Execution issued by Labor Arbiter; Sheriffs may garnish bank accounts, seize company computers, or collect from payment processors used by the platform.
Third-party liability: If the online tutorial firm is a labor-only contractor, you may execute vs. the foreign parent company’s assets in the Philippines (Art. 109).

5. Remedies for genuine independent contractors

Demand letter → Mediation at the National Conciliation and Mediation Board (NCMB) (voluntary) → Small Claims Court (MTC) if claim ≤ ₱1 million and purely monetary → Regular civil action (RTC) or arbitration if contract has an arbitration clause (under ADR Act, RA 9285).
Prescription: 6 years for written contracts, 4 years for oral.
Interest: Legal interest of 6 % per annum from date of demand until full payment (Nacar v. Gallery Frames, G.R. 189871, 2013).

6. Special issues unique to online tutorial platforms

Issue	How the law treats it
Platform incorporated abroad / pays through PayPal or Wise	If services are performed in the Philippines, the Labor Code still applies (Art. 8, territoriality) and wages are due in Philippine currency at the prevailing forex rate on payment date (BSP guideline).
Electronic payslips and dashboards	Under DOLE Labor Advisory 11-14, e-payslips are valid proof of wage computation; take screenshots regularly.
No written contract	Art. 102 still requires wages; absence of contract works against the employer.
Algorithmic “rate slashing” or auto-deductions	Any unilateral deduction not listed in Art. 113 or DO 195-18 (e.g., SSS, tax) is illegal. Seek full refund through NLRC.
Ban on simultaneous teaching on rival platforms	If you are an employee, a reasonable non-compete may stand; if it effectively prevents you from earning a living post-employment it is void as restraint of trade.
“Silent firing” by turning off your account	If you have accrued wages, you may claim both unpaid salary and *separation pay (if dismissal is illegal).

7. Documentary checklist

Government-issued ID and proof of residence.
Employment Contract / Service Agreement (if any).
Screenshots of teaching schedules, dashboards, or cancellations.
Payslips / E-wallet logs / Bank Statements.
Communications (e-mails, chat transcripts) showing follow-ups or admission of liability.
Notice of Account Suspension or Termination (if relevant).
Computation Sheet detailing each unpaid cutoff, 13th-month differential, and holiday premiums.

8. Costs, timelines, and practical tips

Stage	Typical cost	Typical timeline	Practical tip
Demand letter	₱0 – ₱3,000 (if lawyer-drafted)	1 week	Keep tone professional; threaten legal action only if needed.
SEnA	Free	30 days max	Attend personally; be ready with exact figures.
NLRC filing	₱0 filing fee for employees; minimal appearance fees if you hire counsel (optional)	3 – 8 months at Labor Arbiter level; another 6 months on appeal	Represent yourself if claim is straightforward; NLRC personnel will guide you.
Civil small claim (contractor)	₱2,500 filing fee (≤ ₱400k claim)	60 days to decision under A.M. 08-8-7-SC	No lawyers allowed—good for freelancers.
Writ of execution	Sheriff’s fees (₱2,000 +)	1 – 6 months depending on asset search	Request garnishment of payment gateway (e.g., Payoneer) accounts.

9. Criminal liability & escalation

Willful refusal to pay wages is punishable under Art. 303.
File a sworn complaint-affidavit before the City or Provincial Prosecutor. Attach NLRC decision or payroll records.
The Department of Justice may issue hold-departure orders or immigration lookout bulletins for foreign corporate officers.

10. Prescription pitfalls

Three-year clock starts when each wage installment became due—not on final dismissal date. Tolling occurs upon SEnA filing.
For workers paid via revenue-share, each month’s unremitted share is a separate cause of action; do not delay.

11. Tax and social-security ramifications

If classified as an employee, the platform must:
- Withhold and remit income tax (BIR Form 1601-C) and issue BIR Form 2316 annually.
- Register and pay SSS, PhilHealth, Pag-IBIG contributions.
Non-payment of government contributions opens the firm to criminal prosecution under the respective charters plus personal liability of corporate officers.

12. Collective action and support networks

Platform Workers Association of the Philippines (PWAP) – assists online tutors in filing group claims.
Federation of Free Workers (FFW) and KMU offer paralegal training for digital workers.
DOLE Hotline 1349 and SEADOLE portal are open 24/7.

13. Flowchart: Which remedy fits your case?

Is there an employer-employee relationship? Yes → Go to SEnA / NLRC. No → Go to Civil / Small Claims / Arbitration.
Amount ≤ ₱5,000 and no reinstatement? Yes → Regional Director summary money-claim. No → NLRC Labor Arbiter.
Settlement reached? Yes → Execute Quitclaim with notarization. No → Proceed to formal adjudication.

Remember: The burden of proof that payments have been made rests on the employer (Art. 118).

14. Frequently asked questions

Question	Short answer
“The company is in China and says PH law doesn’t apply—true?”	False. Philippine labor standards apply to work performed in the Philippines regardless of employer’s domicile.
“They pay in US dollars. Which amount do I claim?”	Convert to pesos at the BSP reference rate on the due date. Interest applies in pesos.
“I already signed a quitclaim for partial payment. Can I still sue?”	Yes, if the quitclaim was vitiated by fraud, duress, or misrepresentation, or if it does not reflect the full amount legally due.
“Can I claim moral and exemplary damages?”	Only in illegal dismissal or bad-faith withholding cases; you must show malice or oppressive conduct.
“Is 13th-month pay mandatory for online tutors?”	If you are an employee and your employer is engaged in profit, yes—regardless of “per lesson” pay scheme (PD 851).

15. Practical negotiation strategies

Compute your claim precisely (include basic wage, 13th-month, premium for work on holidays/rest days, and 6 % interest).
Anchor high during SEnA, anticipating compromise.
Bundle non-monetary issues (e.g., request a service certificate) as bargaining chips.
Keep communications polite and factual; emotional rants weaken credibility.
Consider future blacklisting risks—settlement may preserve professional references.

16. Conclusion

Philippine law gives online tutors robust, multi-layered protections against wage theft. Start with the cheapest, fastest route (SEnA), escalate to NLRC if needed, and do not hesitate to invoke criminal sanctions for willful non-payment. The key is timely action—every cutoff you let slide chips away at your claim through prescription. Arm yourself with thorough documentation, understand which forum has jurisdiction, and assert your rights with confidence.

(This guide is for general information only and is not a substitute for personalized legal advice. Laws and regulations change; consult a labor lawyer or the nearest DOLE office for case-specific guidance.)