Filing a Labor Complaint for Unpaid Overtime and Final Pay in the Philippines
(A practical‐legal guide updated to June 2025)
1. Overview
Under Philippine law, every employee is entitled to (a) premium pay for work performed beyond eight hours a day and (b) the timely release of all “final pay” upon separation. When an employer fails to comply, a worker may file a labor complaint and recover the deficiencies—with legal interest, damages, and even reinstatement if warranted. This article gathers, in one place, the controlling statutes, regulations, jurisprudence, and step-by-step procedures you need to know.
Quick takeaway: Money claims prescribe three (3) years from the time each cause of action accrued (Art. 305, Labor Code). Do not delay.
2. 8-Hour Rule and Overtime Premiums
| Situation | Premium Rate | Governing Provision |
|---|---|---|
| Ordinary workday, after 8th hour | 125 % of hourly wage (i.e., +25 %) | Art. 87, Labor Code |
| Rest day or special non-working day (first 8 hrs) | 130 % | Art. 93 & DOLE Handbook |
| Rest day plus overtime | First 8 hrs @130 %, excess hours @169 % (130 % × 1.30) | |
| Regular holiday (first 8 hrs) | 200 % | Art. 94 |
| Holiday plus overtime | First 8 hrs @200 %, excess hours @260 % |
Exemptions. Managerial employees, field personnel, and workers “whose time and performance is unsupervised” (Art. 82) are not covered by overtime rules. However, mislabeling a rank-and-file worker as “managerial” will not bar recovery.
3. What Counts as “Final Pay”
Per DOLE Labor Advisory 06-20, employers must release within 30 days from separation the following:
- Unpaid wages and overtime differentials
- Pro-rated 13th-month pay
- Cash conversion of unused service incentive leaves (or CBA equivalents)
- Tax refund/payslip adjustments
- Retirement pay, separation pay, or redundancy pay (if applicable)
- Other company-initiated benefits (bonuses, stock purchase plans, commissions)
Failure or delay triggers statutory interest (6 % per annum, Nacar v. Gallery Frames, G.R. No. 189871).
4. Evidence Checklist
| Documentary Proof | Why It Matters |
|---|---|
| DTRs, swipe logs, biometrics, CCTV summaries | Show hours actually worked |
| Payslips & payroll registers | Reveal underpayments or missing entries |
| Employment contract / handbook | Confirms wage rate & classification |
| Resignation/termination papers | Fixes date for “final pay” timeline |
| Co-worker affidavits | Corroborate work schedules |
| Email/chat directives to work overtime | Establish employer knowledge |
Burden of proof: In overtime and wage cases, the employer must prove full payment once the employee shows that she rendered work (Art. 113).
5. Step-by-Step Complaint Process
A. Internal Demand
- Send a written demand (keep a copy).
- Ask payroll or HR for an itemized computation.
- The demand interrupts prescription (Civil Code Art. 1155).
B. SEnA—Single Entry Approach (30-Day Mediation)
- File a Request for Assistance (RFA) with the nearest DOLE Field/Provincial Office.
- No filing fee; fill out SEnA Form 1.
- A Desk Officer schedules mediation within 5 days; mediation lasts up to 30 calendar days.
- Settlement is documented in a Compromise Agreement, immediately enforceable via DOLE or NLRC.
C. Formal Complaint
| Scenario | Proper Forum |
|---|---|
| Claim ≤ ₱5,000 and no reinstatement | DOLE Regional Office (Art. 129) |
| Claim > ₱5,000 or includes reinstatement, damages, or illegal dismissal | NLRC (Art. 224) |
How to file at NLRC:
- Verified Complaint (NLRC Form A) stating causes of action, prayed-for relief, and computation.
- Pay docket fees (roughly 1 % of claim above ₱5,000, plus ₱100 filing fee).
- Attend mandatory conciliation conference (not more than two settings).
- Submit Position Paper with evidence.
- After the case is submitted for resolution, Labor Arbiter must decide within 30 days.
D. Appeal & Execution
- Party aggrieved may appeal to the NLRC Commission within 10 days, with employer posting a cash/surety bond equivalent to the monetary award.
- Further review via Rule 65 Petition to the Court of Appeals, and ultimately to the Supreme Court.
- Final monetary awards are executed by a sheriff; garnishment or levy is possible.
6. Timelines & Prescription
- Money claims: 3 years (Art. 305). Running starts each payday the amount should have been paid.
- Illegal dismissal + backwages: 4 years under Civil Code Art. 1146.
- Execution of decision: 5 years from finality, extendible another 5 years if motion to revive judgment is filed.
7. Computation Pointers
Regular hourly rate = Monthly salary ÷ 26 days ÷ 8 hours OT premium per hour = Hourly rate × 25 % (or corresponding premium)
Example: A warehouse worker earning ₱20,800 / month works 12 hours on a rest day. Step 1. Hourly = 20,800 ÷ 26 ÷ 8 = ₱100. Step 2. First 8 hrs on rest day = 100 × 130 % = ₱1,040. Step 3. Excess 4 hrs = 100 × 169 % × 4 = ₱676. Total per day = ₱1,716.
8. Special Topics & FAQs
Are supervisors entitled to overtime?
Only if they lack true managerial authority and their work hours are supervised. The test looks at the actual functions, not job titles (Hyatt Regency Manila v. Dinglasan, G.R. No. 148590).
Can I file as a group?
Yes. Representative or class complaints are allowed. A union may file on members’ behalf.
Will filing a complaint hurt my future job prospects?
Retaliatory blacklisting is unlawful (Labor Code Art. 118) and can be reported to DOLE. Always keep documentation.
What if the company closed down?
Money claims survive. Assets can be pursued via corporate liquidation proceedings; directors may be solidarily liable if closure was in bad faith (Gudez v. NLRC, G.R. No. 186544).
9. Practical Tips
- Act quickly. Even one late payday triggers the 3-year clock.
- Secure copies of biometrics and payslips before resigning.
- Keep receipts. When you file anything, ask for a received-stamped copy.
- Compute your claim precisely—courts look unfavorably on speculative estimates.
- Beware of quitclaims. You may still recover if the quitclaim was signed under duress or for a grossly inadequate amount.
10. Conclusion
The Philippine labor system gives workers multiple, low-cost avenues to recover unpaid overtime and final pay. Success, however, hinges on meeting prescription deadlines and presenting solid documentary proof. While the SEnA process favors speedy settlement, the NLRC remains the primary forum for substantial or contested claims. Assert your rights early, document everything, and seek professional legal advice when issues grow complex.
This article is informational and not a substitute for tailored legal counsel. For authoritative interpretation, consult the Labor Code, DOLE regulations, and relevant court decisions, or engage a licensed Philippine lawyer.