In the Philippines, the timely payment of wages is not merely a contractual obligation but a statutory right protected by the Labor Code and various issuances from the Department of Labor and Employment (DOLE). When an employer fails to pay salaries on time, employees have specific legal avenues to seek redress and recover what is rightfully theirs.
I. The Legal Standard for Wage Payment
Under Article 103 of the Labor Code, wages must be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days.
- Frequency: Most companies follow a 15th and 30th-of-the-month schedule.
- Final Pay: Per Labor Advisory No. 06, Series of 2020, the final pay of a terminated or resigned employee must be released within thirty (30) days from the date of separation, unless a more favorable company policy or Individual/Collective Bargaining Agreement exists.
II. Administrative Remedy: The SEANA Process
The primary and most efficient way to resolve wage disputes is through the Single Entry Approach (SENA). This is an administrative mechanism designed to provide a speedy, impartial, and inexpensive settlement for labor issues.
1. Filing the Request for Assistance (RFA)
The employee (Requesting Party) visits the nearest DOLE Regional Office or Provincial/Field Office having jurisdiction over the workplace. They will fill out a Request for Assistance form detailing the unpaid wages and other monetary claims.
2. Mandatory Conciliation-Mediation
A Single Entry Approach Desk Officer (SEADO) will be assigned to the case.
- The Conference: Both the employee and the employer will be summoned to a conference.
- Objective: The SEADO acts as a neutral third party to help both sides reach a "compromise agreement."
- Timeline: The SENA process is mandated to be completed within thirty (30) days.
3. Outcome
- Settled: If an agreement is reached, the employer pays the amount, and the case is closed. The agreement is final and binding.
- Unsettled: If no agreement is reached within 30 days, the SEADO will issue a Referral to the Labor Arbiter or the appropriate DOLE office for formal adjudication.
III. Adjudication: The Labor Arbiter (NLRC)
If SENA fails, the employee may file a formal Complaint with the National Labor Relations Commission (NLRC).
- Jurisdiction: The Labor Arbiter handles money claims arising from employer-employee relations exceeding PhP 5,000.00, especially if coupled with a claim for illegal dismissal.
- Position Papers: Unlike a typical court trial, the NLRC process is "quasi-judicial." Both parties are usually required to submit verified Position Papers and supporting evidence (e.g., payslips, DTRs, contracts) instead of oral testimony.
- Decision: The Labor Arbiter will render a decision based on the papers submitted. This decision can be appealed to the NLRC Commission and, eventually, to the Court of Appeals.
IV. Small Money Claims
If the claim is purely for money (unpaid wages) and the total amount does not exceed PhP 5,000.00, and there is no claim for reinstatement, the DOLE Regional Director has the power to adjudicate the case under Article 129 of the Labor Code. This is often faster than an NLRC suit.
V. Legal Penalties and Interest
Employees should be aware of additional protections when filing a complaint:
- Interest: Under Article 2213 of the Civil Code and related labor jurisprudence, unpaid wages may accrue legal interest (currently 6% per annum) from the time of judicial or extrajudicial demand.
- Attorney's Fees: In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to ten percent (10%) of the amount of wages recovered, as per Article 111 of the Labor Code.
- Non-Interference: Employers are prohibited from retaliating against an employee who has filed a complaint. Such actions could constitute an Unfair Labor Practice or illegal dismissal.
VI. Required Documentation
To build a strong case for delayed wages, employees should gather the following:
- Proof of Employment: Appointment letter, ID, or valid contract.
- Proof of Hours Worked: Daily Time Records (DTR) or logbook screenshots.
- Proof of Non-Payment: Bank statements showing the absence of credit or the last received payslip.
- Demand Letter: While not strictly required for SENA, a formal letter sent to the employer demanding payment serves as strong evidence of the employer's default.