How to Claim Unpaid Final Pay from an Employment Agency in the Philippines

A comprehensive legal guide (updated to July 20 2025)

1. Quick‑View Checklist

What you need	Why it matters	Where you get it
Computation sheet of your unpaid remuneration (salary, OT, 13th‑month, unused leave, etc.)	Proof of exact amount due	Ask agency’s payroll / HR; prepare your own if they refuse
Employment documents (contract, job order, pay slips, IDs, COE)	Establish existence & terms of employment	Personal files, HR records, agency branch
Demand letter (optional but recommended)	Interrupts prescription & shows good‑faith effort	Draft yourself or through a lawyer
SENA request form (DOLE)	Starts mandatory conciliation	Nearest DOLE Regional/Field Office
NLRC Complaint‑In‑Triplicate	Formal money‑claim case	NLRC Regional Arbitration Branch (RAB)

2. Key Concepts & Legal Bases

Topic	Core Provision
Final Pay (a.k.a. “last pay” or “back pay”)	Labor Advisory No. 06‑20, s. 2020 (“to be released within 30 calendar days from date of separation, unless a more favorable CBA/company policy applies”)
Contracting/Agency work	Labor Code Art. 106‑109; Department Order (D.O.) 174‑17 (rules on legitimate job contracting & labor‑only contracting)
Joint and Solidary Liability	Labor Code Art. 109 – principal employer is jointly liable with the contractor/agency for wage & benefit deficiencies
Prescription of money claims	Labor Code Art. 306 – 3 years from when the cause of action accrued
DOLE Visitorial Power	Labor Code Art. 128 – DOLE may inspect and order payment of any wage deficiency, regardless of amount
NLRC Jurisdiction	Labor Code Art. 224 – cases involving employee–employer relations & money claims > ₱5,000
Small‑Claim DOLE Art. 129	Summarily decides claims ≤ ₱5,000, provided employment relation undisputed
Interest on monetary awards	Nacar v. Gallery Frames, G.R. No. 189871 (2013) – 6% p.a. interest from finality of decision until full satisfaction

3. What Exactly Comprises “Final Pay”?

Unpaid basic salary (including previous cut‑off not yet released)
Pro‑rated 13th‑Month Pay (Art. 94 + PD 851; even if resigned)
Monetized unused Service Incentive Leave (SIL) – at least 5 days/year if you rendered ≥ 1 year
Overtime, night‑shift differential, premium & holiday pay still unpaid
Separation pay (only if applicable: redundancy, retrenchment, closure, labor‑only contractor termination, etc.)
Retirement benefits (if covered by company CBA or Art. 302)
Refund of deductions (cash bond, unearned SSS/PhilHealth contributions, etc.)
Other company‑specific benefits expressly provided in the contract, CBA, or handbook.

⚠️ Final pay ≠ clearance bonuses. Clearance is administrative; it cannot lawfully delay payment beyond the 30‑day rule (Labor Advisory 06‑20).

4. Rights of Workers Hired Through Employment Agencies

Security of Tenure vis‑à‑vis legitimate contracting
- If the agency is a legitimate contractor (D.O. 174‑17 compliant), you are its employee; the principal is a separate entity but jointly liable for unpaid wages & benefits.
- If the agency is a labor‑only contractor (LOCO), the “principal” is deemed your direct employer; you may compel either or both to pay.
Equal Pay & Benefits Rule
- Under D.O. 174‑17 §9(b), agency workers deployed to the principal should receive at least the same basic wage & benefits enjoyed by directly hired counterparts.
Solidary Liability for money claims
- Art. 109’s joint liability may be enforced in DOLE or NLRC proceedings; choose the respondent with deeper pockets to improve collectability.

5. Step‑by‑Step Claim Process

Stage	What to Do	Timeframe	Output
A. Internal Demand & Clearance	• Request computation in writing (email or letter). • Sign clearance (but write “under protest” if figures are blank/incorrect).	Day 1–30 after termination	Written trail interrupts prescription.
B. Demand Letter (optional yet strategic)	• Address HR/agency & copy principal. • Cite Labor Advisory 06‑20 + 30‑day rule. • Give 5‑10 days to comply.	Day 5–40	Strengthens “good‑faith” & may earn interest from default.
C. DOLE–SENA (Single‑Entry Approach)	• File SENA Request for Assistance (RFA) at nearest DOLE office. • Free conciliation within 30 days. • If settled, parties sign agreement enforceable as judgment.	Day 15–75	Quick, informal, no fees.
D. NLRC Complaint	• If SENA fails or is bypassed (RFA opt‑out allowed for > ₱5,000 claims), file a Verified Complaint at NLRC‑RAB where you worked. • Pay filing fee = 1% of amount claimed > ₱1,000 (per NLRC Rules). • NLRC will docket mandatory 30‑day mediation, then formal hearings.	Within 3 years from accrual	Arbiter’s decision (may award back pay + 6% interest + attorney’s fees).
E. Writ of Execution	• After decision becomes final (10 days no appeal or CA dismissal), move for writ to garnish agency/principal assets or bank accounts.	Approx. 1.5–2 yrs total	Actual monetary recovery.

Practical Tips During Each Stage

Document everything – screenshots of unread emails, texts, time‑in logs, and pay‑slips.
Compute conservatively – show how you arrived at figures (include formula).
Include the principal as party – speeds up settlement, especially if the agency is asset‑light.
Attend all hearings personally or through counsel – non‑appearance may waive your rights.
Beware of quitclaims – valid only if voluntary, real, and not unconscionable (Sunflower Agro Dev’t Corp. v. Sibulo, G.R. Nos. 163251‑52).

6. Special Scenarios

Scenario	What changes
Company closure/bankruptcy	Wage claims enjoy first priority over unsecured creditors (Art. 110); file at NLRC and ask for encumbrance of liquidation proceeds.
Mass lay‑off for authorized cause	Separation pay (½–1 month per year of service) is part of final pay; claim it the same way.
Transfer to a new agency (continuous deployment)	Final pay covers only the period under the outgoing agency; unused leave and 13th‑month reset with the new one unless CBA says otherwise.
OFWs hired by Philippine‑licensed agency	Money claims may also be filed with POEA/DMW Adjudication Office or NLRC; prescription remains 3 years.
Death of employee	Legal heirs file the claim; death gratuity (if any) and accrued benefits form part of estate.

7. Frequently Asked Questions (FAQ)

Q1. My agency says they’ll pay once the principal pays them. Is that legal? No. Art. 106‑109 make the contractor an independent employer; your wage is never contingent on its billing cycle. Demand payment within 30 days; sue both parties if necessary.

Q2. Clearance is taking months because my asset accountability form hasn’t been signed. Can they withhold final pay? No. Labor Advisory 06‑20 states clearance cannot justify non‑release beyond 30 days. The employer may pursue separate civil action for losses, but cannot delay final pay.

Q3. Is small‑claims procedure under Art. 129 still limited to ₱5,000? Yes. For claims ≤ ₱5,000 and no reinstatement issue, you may go to DOLE Regional Office (not NLRC). Most final pay disputes exceed ₱5,000; thus NLRC or DOLE Art. 128 (visitorial power) is the usual route.

Q4. How much is the filing fee at NLRC? 1% of the total money claim above ₱1,000, plus legal research fee (₱10). Indigents can file pauper litigant affidavit to waive fees.

Q5. What if the three‑year prescriptive period is about to lapse? File a demand letter immediately; under Civil Code Art. 1155, written extra‑judicial demand interrupts prescription. Then proceed to SENA/NLRC.

8. Recommended Format for Your Demand Letter

Subject: Formal Demand for Release of Final Pay under Labor Advisory 06‑20 Date: ___ To: HR Manager, [Agency Name] Copy Furnished: [Principal Company]

I, [Your Name], employed as [Position] under Contract No. ___, separated effective [Date]. More than 30 days have elapsed; my final pay remains unpaid.

Amount Due: • Basic salary (____ days) ………… ₱___ • Pro‑rated 13th‑Month Pay (/365 × monthly basic) ………… ₱ • Unused SIL (___ days × ₱) ………… ₱ • Overtime/Night Premium ………… ₱___ • Separation Pay (if any) ………… ₱___ TOTAL ………… ₱___

Kindly release the above within five (5) days from receipt of this letter; otherwise, I shall institute proceedings before the DOLE/NLRC, holding your company and the principal jointly and solidarily liable under Art. 109.

Respectfully, [Signature/Name]

9. Timeline Snapshot

Day 0   – Last working day / termination  
Day 1‑30 – Agency must pay (Labor Advisory 06‑20)  
Day 5‑40 – Send demand letter (optional)  
Day 15‑75 – File SENA (30‑day conciliation)  
By Year 3 – File NLRC case before prescription lapses

10. Reference Statutes, Issuances & Leading Cases

Labor Code of the Philippines (PD 442, as amended), esp. Arts. 94, 106‑110, 128‑129, 224, 302, 306.
Labor Advisory No. 06‑20 (DOLE, Feb. 3 2020) – Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment.
Department Order No. 174‑17 (Rules on Contracting/Sub‑Contracting).
Nakar v. Gallery Frames, G.R. No. 189871 (Aug. 13 2013) – interest rates.
Sunflower Agro Dev’t Corp. v. Sibulo, G.R. Nos. 163251‑52 (Jan. 30 2009) – validity of quitclaims.
Several vendor‑principal liability cases (e.g., Prudential Custom Brokerage; Pacific Steel).

Conclusion

Your final pay is a statutory right that an employment agency—or its principal—must settle within 30 days of your separation. Begin with a paper trail, escalate through DOLE’s free SENA conciliation, and, if necessary, file a complaint with the NLRC before the three‑year prescription expires. Always include the principal company to ensure recovery and consider interest, attorney’s fees, and penalties to maximize your lawful entitlements.

This article is for general guidance only and should not substitute for tailored legal advice. When in doubt, consult a Philippine labor‑law practitioner or DOLE officer.

How to Claim Unpaid Final Pay from an Employment Agency in the Philippines