How to Recover Unpaid Overtime and Salary from Previous Employer in the Philippines

In the Philippines, the right to receive just compensation for work performed is a constitutional and statutory guarantee. The 1987 Constitution (Article XIII, Section 3) and the Labor Code of the Philippines (Presidential Decree No. 442, as amended) explicitly protect workers from non-payment or underpayment of wages and overtime pay. When an employer—especially a previous one—fails or refuses to pay what is lawfully due, employees (including former employees) have clear, enforceable remedies. This article comprehensively explains the legal framework, computation rules, prescriptive period, step-by-step recovery process, required evidence, common defenses employers raise, and practical tips based on established Philippine labor law and jurisprudence.

Legal Basis for the Claims

1. Regular Wages/Basic Salary
   Articles 82–96 of the Labor Code govern wage payment. Wages must be paid at least twice a month, in legal tender, and without unauthorized deductions (Articles 102–113). Non-payment or delayed payment of earned wages is illegal withholding under Article 116.

2. Overtime Pay
   Article 87: Work performed beyond eight (8) hours in a day entitles the employee to an additional 25% of the hourly rate for ordinary days, and 30% additional on rest days, special non-working days, or regular holidays.
   Night shift differential (Article 86): +10% for work between 10:00 p.m. and 6:00 a.m.
   Combined premiums apply when overtime coincides with night shift, rest day, or holiday.

3. Related Claims Usually Included
   Most employees claiming unpaid overtime and salary also include:

   • 13th-month pay (PD 851, as amended)
   • Service Incentive Leave (SIL) pay (Article 95)
   • Holiday pay (Article 94)
   • Separation pay or retirement pay (if applicable)
   • Underpayment due to below-minimum-wage rates
     These are routinely consolidated in a single complaint because they all fall under “money claims arising from employer-employee relations.”

Prescriptive Period: You Have Only Three (3) Years

Article 291 (now Article 306 of the Labor Code, as renumbered):
“All money claims arising from employer-employee relations shall prescribe in three (3) years from the time the cause of action accrued.”

Key points from Supreme Court jurisprudence:

• The three-year period runs separately for each unpaid wage or overtime instance (from the date it became due and demandable).
• However, in practice, the filing of the labor complaint interrupts prescription for all claims that accrued within the three years prior to filing.
• If you were separated in, say, January 2023, you can still claim unpaid wages and overtime that fell due as far back as January 2022 (if you file in January 2025). Anything earlier than that is already barred.
• Illegal dismissal backwages prescribe in four (4) years (this applies only if you are also claiming reinstatement or separation pay in lieu thereof).

File as soon as possible. Delay weakens evidence and risks prescription.

Who Can File and Against Whom

• Any former employee (rank-and-file, non-exempt from overtime) in the private sector.
• Managerial employees and field personnel are generally exempt from overtime pay.
• Domestic workers (kasambahay) follow RA 10361 (Batas Kasambahay) but may still use DOLE/NLRC procedures.
• Government employees follow Civil Service rules and file with the CSC or Ombudsman.
• Seafarers file with NLRC but under POEA/OWWA rules and the 2016 POEA-SEC.

The claim may be filed against the company, its corporate officers, or directors personally if they acted in bad faith or with malice (jurisprudence: Malayang Samahan ng mga Manggagawa sa Greenfield v. Ramos, G.R. No. 113907, 2000).

Step-by-Step Recovery Process (Current as of 2025)

Step 1: Amicable Demand (Highly Recommended, Often Required as Evidence)

Send a formal demand letter via registered mail or personal service to the employer stating:

• Period of employment
• Specific unpaid amounts (attach computation)
• Demand for payment within 7–10 days
  Keep proof of sending and receipt. This letter is crucial evidence of good faith and interrupts potential laches claims.

Step 2: File Request for Assistance (RfA) under Single Entry Approach (SEnA) – Mandatory

Department Order No. 174-17 (2017) and DOLE Department Order No. 238-22 (2022) require all labor complaints to undergo SEnA first.

• File at the DOLE Regional/Provincial/Field Office with jurisdiction over your last workplace or residence (free of charge).
• You may now file online via the DOLE SEnA Online Facility (https://sena.dole.gov.ph).
• Submit RfA form + supporting documents.
• A Single Entry Approach Desk Officer (SEADO) will schedule conciliation conferences (maximum 30 days).
• If settlement is reached → sign Release and Quitclaim (review it carefully; DOLE will help ensure it is fair).
• If no settlement → SEADO issues Certificate of Failed Conciliation/Referral to appropriate office (usually NLRC).

SEnA is compulsory. Skipping it is fatal to your case (NLRC will dismiss for lack of jurisdiction).

Step 3: File Formal Complaint with the National Labor Relations Commission (NLRC)

After failed SEnA, file the verified Complaint with the appropriate NLRC Regional Arbitration Branch (RAB) within the remaining prescriptive period.

Required attachments:

• Certificate of Failed SEnA
• Employment contract or proof of employment (ID, payslips, SSS/PhilHealth/Pag-IBIG records, 2316 if any)
• Daily Time Records (DTR), bundy cards, electronic logs, or affidavits if employer withheld records
• Computation sheet (use DOLE-prescribed format if possible)
• Demand letter and proof of service
• Affidavit of witnesses (co-employees are very helpful)

No docket fees for the complainant-worker.

Step 4: NLRC Proceedings

• Submission of Position Paper (instead of lengthy trial)
• Reply/Reply-Affidavit
• Clarificatory hearing only if necessary
• Labor Arbiter renders Decision within 30–90 days after submission

If you win:

• Award becomes final and executory after 10 days if no appeal.
• Writ of Execution issued → sheriff can garnish bank accounts, seize property, etc.
• Corporate officers may be held personally liable.

Step 5: Appeal (if necessary)

• To NLRC Commission (within 10 days) → requires cash/surety bond equal to monetary award
• To Court of Appeals via Rule 65 (certiorari, 60 days)
• To Supreme Court (rarely succeeds on factual issues)

Computation of Claims (How to Arrive at the Correct Amount)

1. Regular Unpaid Wages
   Monthly Rate ÷ 30 days (or actual days worked) × unpaid days

2. Overtime Pay (Ordinary Day)
   (Monthly Rate ÷ 30 ÷ 8 hours) × 1.25 × overtime hours

3. Overtime on Rest Day/Special Holiday
   Hourly rate × 1.30 × 1.30 (30% rest day + 30% OT premium) = 169% total

4. Overtime on Regular Holiday
   Hourly rate × 2.00 × 1.30 = 260%

Use the DOLE Handbook on Workers’ Statutory Monetary Benefits (updated annually) for exact formulas. Bring a detailed spreadsheet when filing.

Burden of Proof and Common Employer Defenses

• The employee has the initial burden to prove non-payment.
• Once you present substantial evidence (even just your affidavit + corroborative testimony), the burden shifts to the employer to prove payment (Article 113: employer must keep payrolls for 3 years).
• If employer cannot produce payrolls/DTRs, the employee’s evidence is presumed accurate (jurisprudence: Minsola v. New City Builders, G.R. No. 207613, 2018).

Common employer defenses that usually fail:

• “You signed a quitclaim” → void if grossly disadvantageous or under duress
• “You were a managerial employee” → must be proven strictly
• “We paid in cash without receipt” → employer’s risk; lack of proof favors employee

Practical Tips from Experience

• Never sign a quitclaim that waives your claims unless you have been paid in full and the amount is fair.
• Get co-employees to execute joint affidavits; collective complaints are stronger.
• Avail of free legal assistance: Public Attorney’s Office (PAO), Integrated Bar of the Philippines (IBP) Legal Aid, Sentro ng Alternatibong Lingap Panligal (SALIGAN), or NUPL.
• Keep copies of everything: text messages promising payment, emails, Group chats, etc., are admissible.
• If the company is already dissolved, file the claim against the corporate officers personally or in the SEC liquidation proceedings.

Conclusion

Recovering unpaid wages and overtime in the Philippines is heavily pro-worker. The law presumes regularity in favor of the laborer, proceedings are speedy and non-litigious, and there are no filing fees for employees. With proper documentation and timely filing, success rates are very high—often 70–90% at the Labor Arbiter level when evidence is clear.

Do not allow fear or delay to let your hard-earned money be forfeited. The DOLE and NLRC exist precisely to enforce your constitutional right to just compensation. File your claim now while it is still within the three-year prescriptive period.