No. It is illegal for employers in the Philippines to withhold a Certificate of Employment (COE) from any employee—current, resigned, or terminated—regardless of the reason.

The Department of Labor and Employment (DOLE) has consistently ruled that employers are obligated to issue a Certificate of Employment upon request, and failure or refusal to do so constitutes a violation of labor standards and general labor policy under the Labor Code of the Philippines.

Legal Basis for the Mandatory Issuance of COE

While the Labor Code does not have a single article that explicitly says “Article ___ – Certificate of Employment,” the obligation is firmly established through a combination of the following:

Articles 13 and 14 of the Labor Code (as renumbered by DOLE Department Order No. 174-17 and RA 10151)
– These define the jurisdiction of DOLE to enforce labor standards and protect workers from unfair labor practices.
Article 3 of the Labor Code
– Declaration of basic policy: “The State shall afford protection to labor… and assure the rights of workers to security of tenure, humane conditions of work, and a living wage.”
Article 118 (formerly Article 113) of the Labor Code
– Prohibits withholding of wages and any benefits. By jurisprudence and DOLE interpretation, this prohibition has been extended to withholding of employment documents that are necessary for the worker to seek new employment.
Article 297 (formerly Article 282) and Article 298 (formerly Article 283) – Termination provisions
– Upon separation from employment (whether voluntary or involuntary), the employer is required to immediately issue the necessary employment records, including the COE.
DOLE Department Advisory No. 01, Series of 2015, and various DOLE opinions
– Explicitly states that employers must issue the COE within three (3) working days from request.
Consistent rulings of the Supreme Court
– Cases such as Skippers United Pacific vs. Maguad (G.R. No. 166363, August 15, 2006), Milan vs. NLRC (G.R. No. 202961, February 4, 2015), and Wesleyan University-Philippines vs. Wesleyan University-Philippines Faculty and Staff Association (G.R. No. 181806, March 12, 2014) have all treated the refusal to issue employment certificates as an act of bad faith and unfair labor practice.

What the Law and DOLE Explicitly Say

Employers must issue the COE within three (3) working days from the employee’s written or verbal request.
The COE must contain at least:
– Inclusive dates of employment
– Position(s) held
– Brief description of duties (optional but customary)
– Salary at the time of separation (optional but often included)
There is no legal requirement for the employee to be “cleared” of accountabilities before the COE is released.
The employer cannot demand that the employee first sign a quitclaim, waiver, or final payslip before releasing the COE.

Common Illegal Excuses Employers Use (All Invalid)

Employer’s Excuse	Legal Reality
“You still have accountabilities (cash shortage, unliquidated cash advance, lost property, etc.)”	Invalid. Accountabilities must be pursued through separate collection or garnishment proceedings. COE cannot be used as leverage.
“You must sign the quitclaim first”	Illegal. Quitclaims signed under duress are void (Supreme Court ruling in More Maritime Agencies vs. NLRC, G.R. No. 172053, June 8, 2007).
“You resigned without 30-day notice, so we are penalizing you”	Invalid. Rendering the required notice period affects only the payment of salary for the unserved days; it does not justify withholding the COE.
“Company policy requires clearance from all departments first”	Company policy cannot prevail over the Labor Code and DOLE advisories.
“We will release it only after your exit interview”	Delaying tactic; still illegal if it exceeds three days.

Consequences for Employers Who Withhold COE

Administrative liability
– DOLE inspection can result in fines ranging from ₱50,000 to ₱500,000 per violation under the Labor Code and RA 11058 (Occupational Safety and Health Standards Law, which strengthened DOLE’s enforcement powers).
Monetary liability to the employee
– Actual damages (e.g., lost job opportunity due to inability to present COE)
– Moral and exemplary damages (common awards range from ₱30,000 to ₱100,000)
– Attorney’s fees (10% of amount recovered)
Constructive dismissal (if the employee is still employed)
– If the refusal to issue COE makes continued employment intolerable, the employee may treat it as constructive dismissal and claim full backwages, separation pay, and damages.
Illegal dismissal (if the withholding is accompanied by refusal to allow the employee to return to work)
– Full monetary awards including backwages from date of dismissal up to finality of judgment.
Criminal liability (rare but possible)
– If the withholding is done with malice and causes serious damage, it may fall under Article 288 of the Revised Penal Code (unfair competition) or even qualified theft if it effectively prevents the employee from earning a living.

Remedies Available to Employees

Immediate remedy (fastest)
– Send a formal demand letter (via email with read receipt or registered mail) giving the employer three (3) days to comply.
– File a complaint at the DOLE Regional Office (Single Entry Approach or SENA) – free, no lawyer needed, resolution within 30 days.
Monetary claims
– File at the NLRC for damages, backwages (if constructive/illegal dismissal is claimed), and moral/exemplary damages.
Small claims (if only actual damages are small)
– If the only damage is, say, a lost signing bonus of ₱20,000 because you couldn’t submit the COE, you can file in the regular courts under the small claims procedure (no lawyer required).
Criminal complaint (last resort)
– File for unjust vexation or grave coercion if the employer threatens or harasses the employee over the COE.

Sample Demand Letter (Very Effective)

[Your Name]
[Your Address]
[Date]

[Employer Name/HR Manager]
[Company Name]
[Company Address]

Subject: Final Demand to Issue Certificate of Employment Within Three (3) Days

Dear Sir/Madam,

I was employed in your company as [position] from [start date] to [end date/resignation date].

Despite repeated requests, you have failed/refused to issue my Certificate of Employment.

Please be informed that under Philippine labor law and DOLE advisories, you are required to issue the said certificate within three (3) working days from request.

This is my final demand for you to issue the Certificate of Employment on or before [date – 3 working days from letter].

Failure to do so will constrain me to file the appropriate labor standards violation complaint against you with the Department of Labor and Employment, as well as claims for damages with the National Labor Relations Commission.

Thank you.

Very truly yours,
[Your Name]
[Contact details]

(Always keep proof of sending and receipt.)

Conclusion

It is unequivocally illegal for any employer in the Philippines to withhold a Certificate of Employment for any reason. The law sides firmly with the employee. DOLE, the NLRC, and the Supreme Court have all consistently ruled against employers who use the COE as leverage.

If your employer is refusing to release your COE, do not sign anything under duress, do not accept excuses, and immediately exercise your rights. The process is employee-friendly, inexpensive, and almost always results in the employer being compelled to comply plus payment of damages.

You are legally entitled to your Certificate of Employment—full stop.