In the Philippine labor landscape, the term "Backpay" is often used colloquially to refer to Final Pay—the total sum of all wages and monetary benefits due to an employee upon the severance of the employer-employee relationship. When an employer refuses or fails to release these funds within the period mandated by law, the employee has the right to seek redress through the Department of Labor and Employment (DOLE).

1. Understanding Your Right to Final Pay

Under Labor Advisory No. 06, Series of 2020, the Department of Labor and Employment explicitly mandates that the final pay of an employee must be released within thirty (30) days from the date of separation or termination of employment, unless a more favorable company policy or individual/collective bargaining agreement exists.

Final pay typically includes:

Unpaid wages for actual days worked.
Pro-rated 13th-month pay.
Cash conversion of unused Service Incentive Leaves (SIL).
Separation pay (if the termination was due to authorized causes).
Refund of excess income tax withheld.
Other benefits stipulated in the employment contract.

2. The Prerequisite: The Demand Letter

Before escalating the matter to the government, it is legally prudent (though not strictly required for a DOLE complaint) to send a Formal Demand Letter to the employer.

Content: Clearly state the date of separation, the specific items of backpay being claimed, and a deadline for payment (e.g., 5 to 7 days).
Purpose: This serves as evidence of "bad faith" or simple neglect on the part of the employer if the case reaches a formal hearing.

3. The Step-by-Step Reporting Process

If the employer ignores the demand or refuses to pay, the legal remedy is to file a Request for Assistance (RFA) through the Single Entry Approach (SEnA).

Step A: Filing the SEnA Request

The SEnA is a prescribed 30-day mandatory conciliation-mediation process designed to provide a speedy, impartial, and inexpensive settlement.

Where to file: Visit the nearest DOLE Regional, Provincial, or Field Office having jurisdiction over the workplace. Alternatively, you may file online through the DOLE SEnA portal.
The Form: You will fill out an RFA form detailing the "Money Claims" (non-payment of final pay).

Step B: Conciliation-Mediation Meetings

Once filed, a SEnA Desk Officer (SEADO) will be assigned to the case.

Notice of Conference: Both the employee and the employer will receive a notice to appear for a scheduled conference.
The Meeting: The SEADO will facilitate a discussion to reach a settlement.
The Goal: To get the employer to issue the check or cash for the backpay immediately or on a set date.

Step C: Issuance of Referral (If Settlement Fails)

If the employer fails to appear twice or if no agreement is reached within 30 days, the SEADO will issue a Referral for Compulsory Arbitration.

4. Escalation to the Labor Arbiter

If SEnA fails, the case moves from DOLE’s administrative mediation to the National Labor Relations Commission (NLRC).

Filing a Formal Complaint: You will file a formal complaint for "Money Claims."
Position Papers: Both parties will be required to submit Position Papers—written documents explaining their side and attaching evidence (payslips, termination letters, etc.).
The Decision: A Labor Arbiter will render a decision. If the Arbiter finds the employer liable, they will order the payment of the backpay plus legal interest and, potentially, 10% of the total amount as Attorney's Fees if a lawyer was engaged.

5. Important Legal Protections

Clearance Procedures: Employers often withhold backpay pending the completion of "clearance." While the Supreme Court recognizes clearance as a valid management prerogative, it cannot be used to indefinitely withhold wages. If the employee has returned all company property, the employer has no legal basis to delay payment beyond the 30-day window.

Quitclaims: Do not sign a "Waiver, Release, and Quitclaim" until you have actually received the correct amount. Signing this document usually bars you from further claims against the employer.

Summary of Documentation Needed

To ensure a smooth reporting process, prepare the following:

Proof of Employment: (ID, Appointment Letter, or Payslips).
Termination/Resignation Letter: (To establish the 30-day timeline).
Demand Letter: (With proof of receipt/delivery).
Computation: A breakdown of how much you believe you are owed.

Jurisdiction and Legal Basis

The right to wages is protected by the Labor Code of the Philippines (Presidential Decree No. 442) and the 1987 Constitution. Non-payment of wages is not just a breach of contract; it is a violation of labor standards that the state is mandated to protect.