In the Philippines, the protection of workers' rights is a matter of constitutional and statutory priority. When an employment relationship ends—whether through resignation or termination—the employer is legally obligated to release the employee's final pay and ensure all mandatory social contributions are up to date. Failure to do so constitutes a labor violation that can be redressed through the Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC).

I. Final Pay: Scope and Deadlines

Final pay (also known as "back pay") refers to all revenues and benefits due to an employee regardless of the cause of termination. According to DOLE Labor Advisory No. 06, Series of 2020, final pay must be released within thirty (30) calendar days from the date of separation, unless a more favorable company policy or Individual/Collective Bargaining Agreement exists.

What is included in Final Pay?

Unpaid Salary: Wages earned for the actual days worked before separation.
Pro-rated 13th Month Pay: Calculated as .
Service Incentive Leave (SIL) Pay: The cash equivalent of unused SIL (5 days per year for employees with at least one year of service).
Tax Refunds: Excess taxes withheld from the employee’s salary.
Other Benefits: Separation pay (if applicable), retirement pay, or bonuses stipulated in the contract.

II. Unremitted SSS, PhilHealth, and Pag-IBIG Contributions

Employers are mere trustees of the contributions deducted from an employee's salary. Under the Social Security Act of 2018 (R.A. 11199) and the Universal Health Care Act (R.A. 11223), failure to remit these deductions is a criminal offense.

Criminal Liability: Non-remittance is considered Estafa or embezzlement under the Revised Penal Code because the employer withheld the money specifically for a purpose but failed to apply it.
Civil Liability: The employer is liable for the unremitted amount plus hefty penalties (usually 2% to 3% monthly) and may be barred from claiming tax deductions for labor costs.

III. The Legal Process: Step-by-Step

If an employer refuses to release final pay or has failed to remit contributions, the following legal steps are taken:

1. The Demand Letter

Before filing a formal case, it is standard practice to send a formal Letter of Demand via registered mail. This serves as proof that the employer was given a final opportunity to comply.

2. Single Entry Approach (SEnA)

The first formal legal step is filing a "Request for Assistance" (RFA) with DOLE SEnA. This is a mandatory 30-day conciliation-mediation process.

Goal: To reach an amicable settlement without a full-blown trial.
Outcome: If settled, a "Quitclaim and Release" is signed. If no settlement is reached, a Notice of Conference Results is issued, allowing the employee to file a formal Labor Complaint.

3. Filing the Formal Complaint (NLRC)

If SEnA fails, the case is elevated to the Labor Arbiter of the NLRC.

Position Papers: Both parties submit written affidavits and evidence. There is generally no trial-type hearing unless the Labor Arbiter deems it necessary.
The Decision: The Labor Arbiter will issue a decision. If the employee wins, the employer may be ordered to pay the money plus 10% attorney’s fees if a lawyer was engaged.

4. Reporting to Statutory Agencies

For unremitted benefits, a separate administrative complaint should be filed directly with:

SSS: Visit the "Member Assistance" section of the nearest SSS branch to file a formal complaint for non-remittance.
PhilHealth: File a report with the PhilHealth Regional Office.

IV. Required Evidence for the Case

To ensure a successful claim, the employee should gather the following documents:

Proof of Employment: ID, Appointment Letter, or Payslips.
Notice of Resignation/Termination: Proof of the date of separation.
Clearance Form: If the employee has already completed the exit clearance process.
Contribution Records: Screenshots or printouts from the SSS/PhilHealth online portals showing the gap in contributions.

V. Statute of Limitations

Under Article 306 of the Labor Code, all money claims arising from employer-employee relations must be filed within three (3) years from the time the cause of action accrued. However, for criminal cases related to SSS non-remittance, the prescriptive period is longer (20 years). It is best to act immediately once the 30-day deadline for final pay has passed.