How to File a DOLE Complaint for Final Pay and Certificate of Employment (COE) in the Philippines

Updated for Philippine practice as of 2024. This guide is written in a legal-article format and is intended for workers, HR practitioners, and counsel navigating claims over final pay and COE.

I. Executive Summary

When employment ends, an employee is entitled to:

Final pay (all amounts due upon separation); and
Certificate of Employment (COE) (upon request).

Under DOLE practice:

Final pay should be released within 30 calendar days from separation (unless a company policy/CBA provides a shorter period).
A COE must be issued within 3 days from the employee’s request.

If the employer fails to comply, the worker may use SEnA (Single Entry Approach) conciliation-mediation at DOLE as a mandatory first step. If settlement fails, the case may proceed to NLRC (for money claims/illegal dismissal) or to DOLE labor standards enforcement (for compliance orders after inspection), depending on the nature of relief.

II. Legal Bases and Key Concepts

A. Final Pay

Final pay (often called “last pay” or “back pay”) typically includes:

Unpaid basic salary up to last day worked;
Pro-rated 13th month pay (Presidential Decree No. 851 and its rules);
Cash conversion of unused Service Incentive Leave (SIL) up to 5 days per year, if entitled (Labor Code, as amended);
Separation pay, if applicable (e.g., authorized causes under the Labor Code such as redundancy, retrenchment, closure, or disease);
Other amounts under company policy/CBA or employment contract (e.g., unused vacation/sick leave if convertible, commissions already earned/due, allowances, differentials).

Withholding taxes:

Ordinary final pay components are subject to withholding.

Statutory separation pay due to authorized causes or involuntary separation is tax-exempt under the NIRC and BIR rules, provided conditions are met.

Employer should furnish the employee a BIR Form 2316 for the year concerned.

Clearance: Employers may require clearance, but clearance processing cannot be used to delay the release beyond the recognized period (generally 30 days from separation).

B. Certificate of Employment (COE)

A COE is a simple document confirming (i) the employee’s identity, (ii) position(s) held, and (iii) inclusive dates of employment.

It need not (and generally should not) state the reason for separation or performance ratings, unless the employee specifically requests such additional details.
The employer must issue the COE within 3 days from request.

Good practice: Request the COE in writing (email is fine) and keep proof of the date/time sent.

C. Prescription (Deadlines to Sue)

Money claims arising from employer–employee relations (e.g., unpaid salaries, 13th month, SIL conversion) prescribe in three (3) years from when the cause of action accrued.
Illegal dismissal actions are generally treated as injury to rights and are subject to four (4) years; however, claims for monetary awards incident to dismissal may interact with the 3-year rule. In practice, do not delay—move promptly within 3 years to avoid arguments over prescription.

D. Jurisdiction & Forums

SEnA (DOLE): Mandatory conciliation-mediation before filing a formal case with NLRC or before resorting to inspection-based enforcement, unless excluded by rules.
NLRC Labor Arbiter: Money claims, illegal dismissal, damages, attorney’s fees, etc.
DOLE (Labor Standards/Inspection): Can issue Compliance Orders for labor standards violations discovered through inspection (e.g., non-payment of 13th month, SIL, wage orders).
Government workers: COE/final pay disputes generally fall under CSC (not DOLE).
If covered by a CBA: Exhaust grievance machinery first, when applicable.

III. What Counts as “Final Pay” (Detailed)

Unpaid Wages/Overtime/Night Shift Differential/Holiday Pay
13th Month Pay (Pro-Rated):
- Formula (typical): Total basic salary earned within the calendar year ÷ 12; pro-rate if resigned/terminated mid-year.
Service Incentive Leave (SIL) Conversion:
- If entitled and unused, up to 5 days per year must be converted to cash upon separation.
Separation Pay (Authorized Causes):
- Redundancy/Installation of labor-saving devices: At least 1 month pay or 1 month pay per year of service (whichever is higher).
- Retrenchment/Closure not due to serious losses: At least 1 month pay or 1/2 month pay per year of service (whichever is higher).
- Disease (under conditions set by law): 1/2 month pay per year of service.
- Fraction of at least 6 months counts as one whole year.
Other Contractual/CBA Benefits: Leave conversions beyond SIL, earned commissions, allowances already due, etc.
Deductions/Offsets:
- Permissible deductions (e.g., unreturned company property, legitimate cash advances) must be lawful, documented, and consented to or clearly authorized by law/contract; otherwise, they can be disputed.

IV. COE: Form, Content, and Common Issues

Minimum content: Employee’s name, position(s), and inclusive employment dates.
Optional: Salary rate (often requested by banks/visa offices), reason for separation (only if the employee requests it).
Refusal to issue: Non-issuance despite a proper request can lead to DOLE intervention and potential administrative sanctions. The worker may file under SEnA to compel issuance.

V. The DOLE SEnA Process (Mandatory First Step)

SEnA is a free, non-litigious, and 30-calendar day conciliation-mediation process designed to settle labor issues quickly.

A. Who May File

Any worker (rank-and-file, supervisory, managerial), probationary or regular, project-based, kasambahay, gig/contractual with an employer–employee issue, etc.
Not for government employees (go to CSC).

B. Where to File

DOLE Regional/Provincial/Field Office with jurisdiction over (i) the workplace or (ii) the worker’s residence (practice allows flexibility).
SEnA also accepts e-filing via DOLE’s online channels (widely used since 2020). You may also contact the DOLE 1349 hotline for guidance.

C. What to File

A Request for Assistance (RFA) stating the issues: e.g., “Non-payment of final pay and refusal to issue COE.”
Attach/bring copies of: government ID, employment contract/appointment letter (if available), payslips, time records, resignation letter/termination notice, clearance forms, demand letters/emails requesting COE/final pay, and any company policies/CBA.

D. Flow of Proceedings

Filing & Docketing: You receive a schedule for a conciliation-mediation conference.
Conference(s): A SEnA Desk Officer (SEADO) facilitates. Lawyers are allowed but not required.
Outcomes:
- Settlement (Kasunduan): Terms are put in writing and signed; this is binding and enforceable.
- No Settlement: The SEADO issues a referral/endorsement allowing you to file a formal case with NLRC or to proceed with other remedies (e.g., DOLE inspection route when appropriate).

Timeline: SEnA runs up to 30 days from filing (by rule), extendable by agreement for another period if near settlement.

Cost: Free.

VI. After SEnA: Choosing the Right Formal Route

A. NLRC (Labor Arbiter) Complaint

File here when you seek:

Money claims (unpaid wages, 13th month, SIL conversion, damages, attorney’s fees);
Illegal dismissal/reinstatement/backwages;
Separation pay when dismissal is wrongful or as monetary consequence.

Procedure (high level):

File a verified complaint (you can use the NLRC form); attach your SEnA referral.
Attend mandatory conciliation and preliminary conference; submit position papers with evidence.
Decision is appealable to the NLRC Commission, then to the Court of Appeals via Rule 65.

B. DOLE Labor Standards (Inspection/Compliance Order)

If the issue concerns statutory compliance (e.g., non-payment of 13th month, SIL, wage orders) and is suitable for inspection:

DOLE may conduct an inspection and, upon findings, issue a Compliance Order directing the employer to pay/comply.
This path is powerful for collective or systemic violations and can cover final pay components that are labor standards benefits.

Note: The old “≤ ₱5,000 without reinstatement” jurisdiction of DOLE Regional Directors for money claims has been overtaken by subsequent laws and practice. Today, NLRC is generally the forum for contested money claims, while DOLE enforces standards via inspection and compliance orders.

VII. Practical Playbook for Workers

Assemble Evidence
- IDs, contract/appointment memo, payslips, proof of last day worked, resignation/termination notice, clearance emails, COE request email, company handbook/CBA.
Send a Written Demand (optional but helpful)
- Politely demand release of final pay within 30 days from separation and issuance of COE within 3 days from request.
- Give a short deadline (e.g., 5–7 days) and say you’ll avail of SEnA if unresolved.
File SEnA RFA
- Indicate relief sought clearly: “Release of final pay (with computation) and issuance of COE; if payroll deductions are applied, require employer to justify.”
- Attend conferences; keep communication professional and settlement-oriented.
If Settlement Fails
- NLRC: File for money claims/illegal dismissal (attach SEnA referral).
- DOLE Inspection: If appropriate for labor standards enforcement.
Keep Track of Deadlines
- Aim to act well within 3 years from separation or accrual of claims.

VIII. Practical Playbook for HR/Employers

Calendar the 30-day final pay rule and 3-day COE rule upon any separation.
Standardize clearances so they do not delay the 30-day payout; escalate unusual deductions to legal and ensure documentary basis and consent.
Provide BIR Form 2316 and any quitclaim/waiver (if used) in compliance with jurisprudence: waivers must be voluntary, for a reasonable consideration, and clear in intent; they do not bar claims if vitiated or if the consideration is unconscionably low.
Keep SEnA in mind: designate an officer with settlement authority to avoid escalation.

IX. Sample Boilerplates

A. Employee Demand Letter (Short Form)

Subject: Request for Release of Final Pay and COE

Dear [HR/Employer],

I separated from the company effective [date]. In accordance with DOLE rules and practice, please release my final pay within 30 days from my separation and kindly issue my Certificate of Employment within 3 days from this request.

My final pay should include unpaid salary, pro-rated 13th month, SIL conversion, and other due benefits. If any deductions are applied, please provide the legal basis and computation.

Thank you. 
[Name]
[Employee ID / Position]
[Contact details]

B. SEnA RFA “Issues” Box (Illustrative)

Non-payment/delay of final pay and refusal to issue COE. 
Reliefs sought:
1) Release of final pay with detailed computation; 
2) Issuance of COE; 
3) If deductions are asserted, employer to show legal basis/consent; 
4) Attorney’s fees and any other appropriate relief.

X. Computation Notes and Worked Example

Scenario: Resigned effective 15 May 2024.

Basic salary: ₱30,000/month (monthly paid).
Unused SIL: 3 days in 2024.
No outstanding company property or cash advances.

Components:

Salary up to last day:
- If monthly: prorate by days actually worked in May.
13th Month (pro-rated):
- Sum of basic salary actually earned from 1 Jan–15 May ÷ 12.
SIL Conversion:
- 3 days × (daily rate).
- Daily rate for monthly-paid (simplified): Monthly salary / 26 (or company’s lawful divisor).
Deductions:
- Withholding tax (if applicable), government contributions (as applicable and due), lawful deductions only.

Always request the itemized computation showing formulas, divisors, and bases.

XI. Evidence, Strategy, and Common Defenses

Proof of employment: ID, contract, payslips, SSS/PhilHealth/Pag-IBIG records.
Proof of entitlement: Policies/CBA, prior 13th month releases, leave ledger.
Proof of request and delay: Dated emails/texts; delivery receipts.
Employer defenses: Pending clearance, alleged losses/damages, policy-based offsets.
- Counter: Clearance cannot justify withholding beyond the 30-day window; offsets must be lawful, proven, and consented to or authorized by law.

XII. Remedies and Enforcement

SEnA settlement: Immediately enforceable by its terms; breach can be elevated to NLRC/DOLE as appropriate.
NLRC decisions: Enforce via writ of execution after finality.
DOLE compliance orders: Enforceable; non-compliance can trigger penalties and proceedings for enforcement.

XIII. FAQs

1) Can the employer refuse to issue a COE because I have not completed clearance? No. COE is a factual record of employment and must be issued within 3 days from request. Clearance is not a lawful excuse to refuse or delay.

2) Can the employer delay final pay until assets are returned? Employers may process clearance, but they should still meet the 30-day release period. Lawful, documented deductions for unreturned items may be applied; blanket withholding is disputable.

3) I signed a quitclaim. Can I still file? Yes, if the quitclaim was involuntary, obtained through fraud/duress, or the consideration is unconscionably low; courts scrutinize quitclaims involving statutory benefits.

4) I am an OFW. Where do I file? You may still use SEnA and/or file with the NLRC (POEA rules may also be relevant, depending on contract and cause). Many filings can begin while you are abroad through representatives or online channels.

5) How long will SEnA take? SEnA aims to finish within 30 days from filing, extendable by agreement.

XIV. Checklist (Worker’s Quick Use)

Request COE (in writing); calendar 3 days.
Ask HR for itemized final pay; calendar 30 days from separation.
Gather proofs (ID, payslips, contract, emails, leave ledger).
Send short demand (optional but helpful).
File SEnA RFA at DOLE (workplace or residence jurisdiction).
If no settlement, file at NLRC (money claims/illegal dismissal) or seek DOLE inspection for standards.

XV. Closing Notes

The fastest path is often SEnA with a clear ask: “Release my final pay (with computation) and issue my COE.” Arrive with documents and a settlement number in mind. If talks fail, move decisively to the proper forum within prescriptive periods.