Filing a money claim before the National Labor Relations Commission (NLRC) is a vital remedy for employees in the Philippines whose rights have been violated. Whether it involves unpaid wages, 13th-month pay, or separation pay resulting from illegal dismissal, the process is designed to be accessible, though it follows strict procedural rules.
1. Jurisdiction: Who Can File?
Before filing, you must ensure your case falls under the NLRC’s jurisdiction. Generally, the NLRC handles cases involving an employer-employee relationship, including:
- Unpaid wages and benefits (holiday pay, service incentive leave, etc.).
- Claims for 13th-month pay.
- Separation pay and backwages (in cases of illegal dismissal).
- Claims for damages arising from employer-employee relations.
- Money claims of Overseas Filipino Workers (OFWs).
Note: If the total amount claimed does not exceed ₱5,000.00 and does not include a claim for reinstatement, the case may fall under the jurisdiction of the DOLE Regional Director rather than the NLRC.
2. The Step-by-Step Process
Phase I: The Mandatory Conciliation (SENA)
Before a formal case is docketed, all labor disputes must go through Single Entry Approach (SENA). This is a 30-day mandatory conciliation-mediation process aimed at reaching an amicable settlement without a full-blown legal battle.
- Where to file: The SENA form is filed at the nearest DOLE or NLRC regional office.
- Outcome: If a settlement is reached, the case is closed. If it fails, the SEADO (Single Entry Assistance Officer) issues a Referral for Compulsory Arbitration.
Phase II: Filing the Formal Complaint
Once you have the Referral, you will file a formal Complaint at the NLRC Regional Arbitration Branch (RAB) that has jurisdiction over your workplace.
- The Pro-Forma Complaint: You will fill out a form specifying your causes of action (e.g., underpayment, non-payment of overtime).
- Summons: The NLRC will issue a summons to the employer (Respondent), informing them of the charges.
Phase III: Mandatory Conferences
The Labor Arbiter (LA) will schedule at least two mandatory conferences. These are another attempt to settle the case. If no settlement is reached, the LA will direct both parties to submit their Position Papers.
3. The Position Paper: Your "Evidence"
The Position Paper is the most critical document in an NLRC case. Unlike a regular court, the NLRC does not usually hold trial-type hearings. Decisions are based primarily on the written documents submitted.
What to include:
- Statement of Facts: A chronological narrative of your employment and the violation.
- Issues: The specific legal questions the Labor Arbiter needs to solve.
- Arguments: Why you are legally entitled to your claims.
- Affidavits and Exhibits: Attached contracts, payslips, termination letters, or screenshots of messages.
4. Decision and Appeals
After Position Papers and Replies are submitted, the Labor Arbiter will issue a Decision.
- If you win: The LA may order the employer to pay the claims plus 10% attorney's fees if you were represented by counsel.
- If you lose (The Appeal): You have 10 calendar days from receipt of the decision to file a Memorandum of Appeal with the NLRC Commission.
- Crucial for Employers: If the employer appeals a monetary award, they must post a cash or surety bond equivalent to the amount of the award.
5. Summary Table of Common Money Claims
| Claim Type | Legal Basis | Description |
|---|---|---|
| 13th Month Pay | P.D. No. 851 | 1/12 of the total basic salary earned within a calendar year. |
| Service Incentive Leave (SIL) | Labor Code | 5 days of paid leave for employees with at least one year of service. |
| Separation Pay | Labor Code | Paid if dismissal is due to authorized causes (redundancy, retrenchment) or as a strain-relation substitute for reinstatement. |
| Backwages | Jurisprudence | Full wages lost from the time of illegal dismissal until actual reinstatement. |
6. Prescription Periods (Deadlines)
Do not wait too long to file. Under the Labor Code:
- Money claims (unpaid wages, etc.) prescribe in 3 years from the time the cause of action accrued.
- Illegal dismissal cases prescribe in 4 years.
Would you like me to draft a sample checklist of the documents you need to gather for your Position Paper?