How to File a Labor Complaint for Delayed Final Pay in the Philippines

This is general information for educational purposes and not a substitute for advice from a Philippine lawyer or DOLE officer.

What counts as “final pay”

“Final pay” (often called last pay) is the total amount an employer must release after an employee’s separation from work—whether by resignation, termination for authorized causes, end-of-contract, or retirement. It commonly includes:

Unpaid basic wages and allowances up to the last day worked
Overtime, night shift differential, holiday pay, premium pay, and wage differentials (if any)
Pro-rated 13th month pay (under PD 851): total basic salary earned in the year ÷ 12
Monetized unused Service Incentive Leave (minimum 5 days/year, if applicable)
Separation pay if due (for authorized causes such as redundancy, retrenchment, closure, disease, installation of labor-saving devices—rates vary by cause)
Cash conversion of other unused leaves if provided by company policy/CBA
Return of lawful deposits/bonds and other amounts due to the employee
Tax refund/adjustments after year-to-date recomputation
Any other contractual benefits earned but unpaid (e.g., commissions already earned, guaranteed bonuses, gratuity if promised)

Timing rule. As a general rule, employers are expected to release final pay within 30 days from the date of separation, or sooner if company policy or a CBA says so. A reasonable clearance process is allowed, but it cannot be used to delay payment indefinitely.

Legal bases you should know (plain-English)

Labor Code of the Philippines (as amended): sets minimum labor standards, lawful deductions, separation pay for authorized causes, prescriptive periods for money claims, and DOLE’s visitorial/enforcement powers.
13th Month Pay Law (PD 851) and its rules: require pro-rated 13th month pay for rank-and-file based on basic salary actually earned.
Service Incentive Leave: minimum 5 days per year for eligible employees; unused SIL is commutable to cash.
DOLE policy on final pay and COE: final pay within 30 days; Certificate of Employment (COE) must be issued promptly upon request (generally within three business days).
Withholding tax rules (NIRC): employers must correctly withhold taxes and issue BIR Form 2316; certain separation pays (e.g., due to redundancy, retrenchment, closure) may be tax-exempt if conditions are met.
Prescriptive periods: money claims arising from employment generally prescribe in 3 years from when the cause of action accrues (i.e., when payment became due and was not made). (Illegal dismissal actions: 4 years; but the money component is still generally 3 years.)

Common but not valid reasons to withhold final pay

“No clearance yet” used as an open-ended excuse (employers may deduct proven liabilities, but cannot hold everything indefinitely).
“We will release after year-end.” Pro-rated 13th month and earned wages are due upon separation.
“You resigned without replacement yet.” Not a legal ground.
“We’ll offset alleged losses.” Deductions for losses require legal basis and due process, and often written authorization from the employee. No automatic forfeiture.

Quick self-check before filing

Compute your claim. Prepare a clear computation sheet:
- Last wages (daily rate × days actually worked but unpaid)
- Differentials (OT, NSD, premium/holiday)
- Pro-rated 13th month pay = (basic salary earned Jan 1–separation) ÷ 12
- Unused SIL = daily rate × unused SIL days
- Separation pay (if applicable; check authorized cause and tenure)
- Less: lawful deductions only (tax, SSS/PhilHealth/Pag-IBIG employee shares already withheld, properly authorized cash advances, proven liabilities)
Gather evidence. Payslips, time records, employment contract, HR emails/chats, resignation letter or termination notice, clearance forms, bank statements showing no deposit, ID.
Put your demand in writing. A short demand letter gives the employer a final chance and shows good faith. (Template below.)

Where and how to file a complaint (step-by-step)

Step 1 — Send a concise Demand Letter (optional but recommended)

Give a firm deadline (e.g., 5–10 calendar days) to release the correct final pay and COE.
Attach your computation and supporting documents.
Send via traceable means (courier with receipt or email to HR/payroll).

Template – Demand Letter

Date

HR/Payroll Department [Company Name & Address]

Re: Demand for Release of Final Pay and COE

I separated from employment effective [date]. As of today, my final pay remains unpaid. Based on the attached computation, the company owes me: – Unpaid wages: ₱[ ] – Pro-rated 13th month: ₱[ ] – Unused SIL: ₱[ ] – Separation pay (if applicable): ₱[ ] – Other benefits: ₱[ ] Total: ₱[ ] (less lawful deductions only).

Please release my final pay within [5/10] calendar days from receipt of this letter and issue my Certificate of Employment. Otherwise, I will file a labor complaint.

Sincerely, [Name, contact details, ID]

If they pay correctly—done. If not, proceed.

Step 2 — File a SEnA “Request for Assistance” (RFA) with DOLE

The Single-Entry Approach (SEnA) is a free, mandatory conciliation-mediation step for most labor issues. It aims to settle within 30 calendar days.

Where to file: Any DOLE Regional/Field Office that covers your workplace or employer’s address. Many regions also accept online RFA submissions.
What to bring/submit: Valid ID, your RFA form (a short narrative of the problem and your demand), your computation, and attachments (payslips, contract, HR emails, clearance).
What happens: A SEnA Desk Officer schedules a conciliation session (in person or virtual). If both sides agree, the terms go into a Settlement Agreement. If the employer pays, the case is closed.
If no settlement or no-show: DOLE issues a Referral to the proper forum (often the NLRC). In some cases, DOLE may also exercise labor standards enforcement (inspection/compliance order) for obvious violations.

Tip: Arrive with your numbers ready. Bring a printed computation the employer can sign off on.

Step 3 — File a formal NLRC complaint (if unresolved)

For unpaid wages/benefits (money claims) arising from employment, the case usually goes to the National Labor Relations Commission (NLRC), Labor Arbiter.

Where: The NLRC Regional Arbitration Branch with venue over the place of work or employer’s address.
How: File a Verified Complaint/Position Statement identifying the parties, facts, and specific amounts claimed. Attach your computation and evidence. (Many branches allow e-filing.)
Fees: Employees generally don’t pay filing fees for initiating complaints.
Process (simplified):
1. Mandatory conciliation-mediation before the Labor Arbiter;
2. If unresolved, the Arbiter orders position papers (with evidence);
3. Case is submitted for decision;
4. Decision may award your money claims (with legal interest).
Appeal:
- The employer appealing a monetary award must post a cash or surety bond equal to the award.
- An employee’s appeal does not require a bond.
Enforcement: After the decision becomes final, a writ of execution may issue. The sheriff can garnish bank accounts or levy property to satisfy the judgment.

Small money claims (summary jurisdiction): For very small amounts (historically not exceeding ₱5,000 per claimant) with no reinstatement issue, a DOLE Regional Director may summarily adjudicate. In practice, most delayed final pay disputes go through SEnA, then the NLRC.

Jurisdiction notes and special situations

Authorized causes & separation pay:
- Redundancy and installation of labor-saving devices: traditionally at least one month pay per year of service or one month pay, whichever is higher.
- Retrenchment to prevent losses and closure not due to serious losses: traditionally at least one-half month pay per year of service or one month pay, whichever is higher.
- Disease: traditionally at least one-half month pay per year of service or one month pay, whichever is higher. (Actual entitlement depends on facts and current jurisprudence/CBA/company policy.)
Project/seasonal/fixed-term: Final pay is still due for earned wages, pro-rated 13th month, and any benefits accrued. Separation pay depends on the cause of separation and contract terms.
Probationary employees: Still entitled to final pay and pro-rated 13th month; separation pay depends on cause of termination.
Commission-based/variable pay: Commissions already earned under the plan must be paid. Keep proof of closed sales and plan terms.
OFWs/seafarers: Money claims typically fall under the NLRC as well; special rules and contract terms (e.g., POEA Standard Employment Contract) may apply.
Government employment: Covered by civil service rules, not the NLRC.
Barangay conciliation: Not required for labor disputes; proceed via DOLE/SEnA and NLRC.

Lawful vs. unlawful deductions from final pay

Lawful/typical:

Withholding tax (with proper recomputation)
Employee share of SSS/PhilHealth/Pag-IBIG (if not yet withheld)
Cash advances/loans with written authorization
Proven liabilities (e.g., unreturned company property) after due process and consistent with policy/law

Unlawful:

Blanket forfeiture of final pay for alleged losses without proof/due process
Penalties not in policy or not allowed by law
Deducting employer contributions (SSS/PhilHealth/Pag-IBIG employer share) from the employee

Timelines and deadlines (what to watch)

Final pay release: as a rule, within 30 days from separation.
COE: promptly upon request (commonly within three business days).
SEnA window: conciliation-mediation within 30 calendar days from filing the RFA.
Prescriptive period for money claims: 3 years from when payment became due and the employer failed to pay (often reckoned from the end of the 30-day release window). File early.

Evidence checklist (attach what you can)

Government ID
Employment contract/offer letter; company handbook/CBA provisions on pay and clearance
Resignation letter or termination notice; proof of separation date
Payslips, payroll summaries, timecards/biometric logs
HR/payroll emails, chat messages, memos (showing promises or admissions)
Clearance form and property turn-over records
Bank statements showing non-receipt
Your computation sheet with formulas and assumptions

Practical tips for a smoother claim

Be specific with numbers. Labor officers and arbiters appreciate a clear, line-item computation with dates.
Keep your tone professional. It improves your chances in SEnA and is persuasive if the record goes to the NLRC.
Ask for COE separately. COE must be issued even if final pay is pending.
Interest and penalties. If the delay is substantial, ask for legal interest on the monetary award.
Settlement is normal. Many cases settle at SEnA or early at the NLRC. Ensure the settlement is in writing and stipulates payment mode and date.
Non-remittance red flags. If you suspect SSS/PhilHealth/Pag-IBIG contributions or withholding taxes were deducted from your pay but not remitted, report to the respective agencies (administrative penalties may apply to the employer).

Sample SEnA “Request for Assistance” (narrative)

I worked as [position] for [Company] from [start date] to [separation date]. The company has not released my final pay within 30 days of separation. My claim covers unpaid wages of ₱[ ], pro-rated 13th month of ₱[ ], unused SIL worth ₱[ ], and other earned benefits totaling ₱[ ], less lawful deductions. I request immediate release of my final pay and issuance of my COE. I am open to settling during conciliation.

NLRC Complaint – essential contents

Parties: Your name and address; employer’s full legal name and address (attach SEC/DTI printout if available, or use what’s on your contract/payslips).
Causes of action: Non-payment/underpayment of wages and benefits; delayed release of final pay; damages/interest (if warranted).
Prayer: Specific amounts per line item; legal interest from due date until full payment; issuance of COE; other just reliefs.
Verification and certification against forum shopping: Sign and date; attach government ID.
Annexes: All evidence listed earlier; your computation sheet.

Separation pay quick guide (rule-of-thumb)

If you were terminated for an authorized cause, you may be entitled to separation pay. Approximate statutory baselines often cited:

Redundancy / installation of labor-saving devices: 1 month pay per year of service (or at least 1 month pay, whichever is higher)

Retrenchment to prevent losses / closure not due to serious losses: ½ month pay per year of service (or at least 1 month pay, whichever is higher)

Disease: ½ month pay per year of service (or at least 1 month pay, whichever is higher) Always check your facts, company policy, CBA, and recent jurisprudence.

Frequently asked questions

1) Can the company refuse to issue my COE until I finish clearance? No. A COE merely states your employment facts and should be issued promptly upon request.

2) My last pay was released but short. What do I do? Demand the deficiency in writing, then proceed to SEnA if unresolved.

3) Does resignation waive my right to final pay? No. Resignation does not waive earned wages/benefits. Any waiver must be knowing, voluntary, and reasonable—and cannot waive statutory minimums.

4) I lost my payslips. Can I still file? Yes. Use contracts, HR emails, bank statements, and sworn statements. The employer is legally obliged to keep payroll records.

5) How is pro-rated 13th month computed if I worked only part of the year? Add your basic salary actually earned from Jan 1 to your separation date, then divide by 12.

6) What if my employer is closed or ghosting? Proceed with SEnA/NLRC. If you obtain an award, it can be enforced against the employer’s assets. If there’s corporate closure, remedies depend on remaining assets and responsible parties.

One-page action plan

Compute your claim and gather evidence.
Send a Demand Letter (5–10 days deadline).
File SEnA RFA at DOLE (free; target settlement within 30 days).
If unresolved, file at NLRC (no filing fee; employer must post appeal bond if it appeals a monetary award).
Enforce via writ of execution if you win.

Final reminders

File early—money claims generally prescribe in 3 years.
Keep everything documented (emails, receipts, screenshots).
Be accurate with computations; bring a clean worksheet to every conference.
If amounts are large or facts complex (e.g., separation pay disputes, commissions, equity), consult a lawyer or a DOLE officer for tailored advice.

If you want, I can turn your numbers into a clean computation sheet and draft your demand letter based on your specifics.