How to File a Complaint for Unreleased Final Pay After 30 Days (Philippines)

How to File a Complaint for Unreleased Final Pay After 30 Days (Philippines)

This article explains your rights to “final pay,” the legal bases typically invoked in the Philippines, and the exact, practical steps to recover it—starting from a demand letter all the way to a labor case. It’s written for employees who have already been separated and have waited 30 days (or more) without receiving their last pay.


What counts as “final pay”?

Final pay (often called “last pay”) is the total amount due to you upon separation, regardless of whether you resigned, were terminated for a just/authorized cause, or your contract expired. It commonly includes:

  • Unpaid wages/salary up to last day of work
  • Pro-rated 13th-month pay (basic salary earned for the year ÷ 12)
  • Cash conversion of unused Service Incentive Leave (SIL) up to 5 days if you’re entitled and unused at separation
  • Holiday pay, premium pay, overtime, night-shift differential, and any other earned differentials
  • Separation pay, if your case falls under authorized causes or as provided by company policy/contract
  • Tax refund or final tax adjustments (e.g., over-withholding)
  • Commissions/allowances already earned under the company’s rules
  • Monetization of unused vacation or other leaves if company policy/contract allows it
  • Deductions must be lawful and properly supported (e.g., accountable item shortages with proof, agreed loans, government-mandated contributions/taxes, or amounts provided in a valid policy). Employers cannot “forfeit” wages as a penalty.

Certificate of Employment (COE): You’re entitled to a COE upon request. Delays in COE or clearance processing are not valid reasons to indefinitely delay final pay.


The 30-day expectation

As a rule of thumb in practice, employers are expected to release final pay within 30 days from separation unless a CBA, employment contract, or a lawful company policy provides a shorter period. If you’ve waited 30 days or more, you have grounds to escalate.


Strategy overview

  1. Document everything (see checklist below).
  2. Send a written demand with a firm but reasonable deadline (5–10 working days).
  3. If unpaid, file for conciliation–mediation under DOLE’s Single Entry Approach (SEnA).
  4. If still unresolved, file a money claim with the NLRC (Labor Arbiter) or pursue DOLE enforcement depending on the facts.
  5. Consider interest, attorney’s fees, and damages where appropriate.

Step 1 — Prepare your evidence

Create a single file (PDF/ZIP) with:

  • Valid ID and contact details
  • Evidence of employment and separation: contract/appointment, resignation letter or termination/endo notice, last day worked
  • Payslips/payroll records, timecards, attendance logs, emails or HR chats acknowledging amounts due
  • Company policy handbook (if any), CBA (if applicable)
  • Computations (see below), and any proof you returned company property/cleared accountabilities
  • Bank statements or payroll card statements (to show non-release)

Tip: Even if you still have an unreturned ID/laptop, the employer may deduct the provable value—but cannot indefinitely withhold all wages without basis.


Step 2 — Send a formal demand (sample)

Subject: Demand for Release of Final Pay To: HR/Payroll (use official addresses)

I separated from the company effective [date]. Under Philippine labor standards, final pay should be released within a reasonable period, typically within 30 days from separation unless a shorter period applies by policy or agreement.

As of today, [no. of days] days have elapsed. Please release my final pay—comprising unpaid salary, pro-rated 13th-month pay, SIL conversion, and other earned differentials—on or before [specific date, 5–10 working days from now]. Please also provide my Certificate of Employment.

If this is not resolved by the stated date, I will file a Request for Assistance (SEnA) with the Department of Labor and Employment and, if necessary, a money claim with the NLRC.

Sincerely, [Your Name] [Mobile / Email] Attachments: evidence & computations

Send via email (cc your personal account) and registered mail or courier to the company’s HR/payroll address. Keep proof of transmission and receipt.


Step 3 — File a DOLE SEnA Request for Assistance (RFA)

What SEnA is: A mandatory conciliation–mediation process designed to quickly resolve labor issues without a formal case. You file an RFA at the DOLE Regional/Field Office that covers the employer’s location (or nearest to you). There’s a standard form; bring your evidence.

What happens:

  • A SEnA conference is set (usually within days).
  • A SEADO (SEnA officer) facilitates settlement or voluntary compliance.
  • The conciliation period typically runs up to 30 calendar days.
  • If you settle, the employer signs a Compromise/Settlement Agreement and pays (often on the spot or by dated check/bank transfer).
  • If there’s no settlement, the SEADO issues a referral to the proper forum (e.g., NLRC Labor Arbiter for money claims/benefits) or to a DOLE enforcement unit when appropriate.

Why start with SEnA: It’s fast, inexpensive, and many employers pay at this stage to avoid litigation and penalties.


Step 4 — Escalate if needed

A. NLRC money claim (Labor Arbiter)

File a complaint (often via the NLRC’s e-filing portal or at the NLRC branch) for non-payment/underpayment of wages and monetary benefits.

  • Prescriptive period: 3 years from when each monetary claim accrued (e.g., the date the final pay should have been released).
  • Reliefs you can seek: principal amounts due, 6% legal interest per annum (generally from default until full payment), 10% attorney’s fees (if you engaged counsel or as indemnity for having to sue), plus any other statutory benefits due.
  • Fees: Filing fees apply but can be waived if you qualify as an indigent; ask the docket clerk.
  • Process: Mandatory conciliation at the NLRC, then position papers (no need for frequent appearances), possible clarificatory hearings, and a Decision. Writ of execution may be issued if the employer still refuses to pay.

B. DOLE labor standards enforcement

In some cases—especially when there are multiple affected workers—DOLE may use its visitorial and enforcement powers to order compliance through a Compliance Order after inspection or investigation. You can also lodge a complaint with the Labor Standards Enforcement Division of the DOLE Regional Office. This track is useful when the issue is a labor standards violation (e.g., non-payment of 13th month or SIL).


Computing the key items (quick guide)

  1. Pro-rated 13th-month:

    $$ \text{13th month due} = \frac{\text{Total basic salary actually earned in the calendar year}}{12} $$

    Include only basic salary (exclude most allowances/OT unless contractually part of basic).

  2. SIL conversion (if applicable):

    $$ \text{Cash for unused SIL days (max 5)} = \text{Unused SIL days} \times \text{Daily wage} $$

    Daily wage is typically your basic daily rate (monthly basic × 12 ÷ 313 for monthly-paid; or company’s lawful factor).

  3. Tax and 13th-month: The 13th-month and other benefits are tax-exempt up to a statutory cap (commonly known as the TRAIN threshold). Excess over the cap is taxable. Your final pay should reflect proper withholding and any refund if there was over-withholding.

  4. Interest: If you sue, courts commonly award 6% per annum legal interest on money claims from default (e.g., demand or due date) until full payment.


Common employer defenses—and how to respond

  • “No clearance yet.” Clearance may justify specific, provable deductions (e.g., an unreturned laptop at documented cost), but it cannot justify indefinite non-payment of all earned wages.
  • “Accountabilities under investigation.” Ask for itemized deductions with proof and insist on partial release of undisputed amounts.
  • “We pay on the next cutoff/pay cycle.” The generally accepted standard is within 30 days from separation, unless a shorter period is set by policy/CBA.
  • “Resigned employees are not entitled to X.” Many items (earned wages, 13th-month, SIL conversion, and other labor standards benefits) remain due regardless of resignation, unless a lawfully narrow exception applies.

Practical tips that move cases faster

  • Be specific: State the amounts you expect with computations attached.
  • Ask for the COE in the same demand.
  • Attend every conference (SEnA/NLRC) on time, with originals and soft copies.
  • Push for on-the-spot payment or post-dated checks with clear dates in any settlement.
  • Don’t accept “for settlement” without a date. Put payment schedules in writing.
  • If you fear closure/insolvency, raise it with DOLE/NLRC and request escrow/guarantee arrangements where possible.

FAQs

1) I was a probationary/contractual worker. Do these rules still apply? Yes—earned wages/benefits (e.g., 13th-month, SIL if covered, premiums) are still due.

2) Can the company keep my pay because I resigned without the full 30-day notice? They may pursue lawful, quantifiable deductions (e.g., training cost if valid, damages proved in proper forum), but cannot withhold all earned pay as a penalty.

3) What if I signed a quitclaim? Valid settlements/quitclaims are generally respected if freely signed, for a reasonable amount, and without vitiated consent. However, grossly unfair or coerced quitclaims can be set aside. Get advice before signing.

4) How long do I have to file? Most money claims prescribe in 3 years from accrual. File SEnA/complaints as soon as you hit Day 31.

5) Do I need a lawyer? SEnA is informal and lawyer-optional. At the NLRC, many workers handle cases pro se, though counsel can help with pleadings and strategy.


Clean, actionable checklist

  • Count 30 days from separation; confirm non-release.
  • Compile evidence and computations into one file.
  • Send written demand (email + registered mail), deadline in 5–10 working days.
  • File SEnA RFA at the DOLE Regional/Field Office if unpaid by your deadline.
  • If no settlement, file NLRC money claim (ask about fee waiver if indigent).
  • Track legal interest (6%) from due date and request attorney’s fees (10%) if applicable.
  • Keep all receipts, emails, and settlement documents.

Simple computation template (copy/paste)

[Your Name]
[Employer]
Separation Date: [YYYY-MM-DD]
Cutoff Dates: [state payroll cutoffs affecting last pay]

A. Unpaid Basic Salary .......... ₱[   ]
B. Overtime/Night Premium ....... ₱[   ]
C. Holiday/Rest Day Pay ......... ₱[   ]
D. 13th-Month (pro-rated) ....... ₱[   ]  = (basic earned this year ÷ 12)
E. SIL Conversion (up to 5 days)  ₱[   ]  = (unused days × daily wage)
F. Commissions/Allowances ....... ₱[   ]  (if earned under policy)
G. Separation Pay (if any) ...... ₱[   ]
Subtotal ......................... ₱[   ]

Less: Lawful Deductions:
  Gov’t Withholding/Contribs ..... ₱[   ]
  Accountabilities (with proof) .. ₱[   ]
  Others (explain) ............... ₱[   ]
Net Final Pay .................... ₱[   ]

Demand/Due Date: [YYYY-MM-DD]
Interest (6% p.a.) from due date to payment: ₱[   ]  (compute on net due)

When to consider settlement vs. litigation

  • Settle early if the company offers full principal plus reasonable interest (or a close lump sum) and you need liquidity.
  • Litigate if there’s a strong paper trail, large differentials (e.g., separation pay, unpaid OT/holiday premiums), or a pattern of refusal.

Bottom line

If your final pay has not been released 30 days after separation, act immediately: send a written demand, file SEnA if unpaid, and proceed to an NLRC money claim (or DOLE enforcement) if necessary. Prepare complete documentation and computations, claim interest, and keep the pressure on with clear deadlines. You have up to 3 years to pursue the money—but the sooner you start, the faster you get paid.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.