In the Philippine employment landscape, the conclusion of an employer-employee relationship—whether through resignation or termination—triggers a mandatory period for the settlement of accounts. Central to this process is the "Final Pay," often colloquially referred to as "back pay."

When an employer fails to release these benefits within the legally mandated timeframe, employees have specific legal avenues to enforce their rights.

1. The 30-Day Mandatory Rule

Under DOLE Department Advisory No. 06, Series of 2020, the Department of Labor and Employment (DOLE) clarified the period for the release of final pay.

The Rule: Final pay must be released within thirty (30) days from the date of separation from employment, unless there is a more favorable company policy or a collective bargaining agreement (CBA) that stipulates a shorter period.
Definition of Final Pay: This includes, but is not limited to:
Unpaid earned salary.
Cash conversion of unused Service Incentive Leave (SIL).
Pro-rated 13th-month pay.
Separation pay (if applicable).
Refund of excess tax withheld.
Other benefits stipulated in the employment contract.

2. Preliminary Step: The Demand Letter

Before initiating formal legal proceedings, it is standard practice to send a Formal Letter of Demand.

The letter should clearly state:

The date of separation.
The expiration of the 30-day window.
A specific period (e.g., 5 to 7 days) within which the employer must comply.
An assertion that failure to comply will result in the filing of a formal labor complaint.

Proof of receipt of this demand letter is often vital evidence in showing the employer’s willful delay or refusal.

3. Administrative Remedy: SENA

If the demand letter is ignored, the next step is the Single Entry Approach (SENA). This is an administrative process aimed at a speedy, impartial, and inexpensive settlement of labor issues.

Process: The employee files a Request for Assistance (RFA) at the nearest DOLE Regional or Provincial Office.
Conciliation-Mediation: A SEADO (Single Entry Assistance Desk Officer) will schedule a conference between the employee and the employer to facilitate a settlement.
Outcome: If a settlement is reached, the employer pays the employee, and the case is closed. If no agreement is reached within 30 days, the SEADO will issue a Referral to the Labor Arbiter.

4. Judicial Remedy: Filing a Complaint with the NLRC

If SENA fails, the employee can file a formal Complaint for non-payment of wages and benefits with the National Labor Relations Commission (NLRC).

Cause of Action: The complaint will be for "Money Claims" arising from the employer-employee relationship.
Mandatory Conferences: The case undergoes two mandatory conferences (mediation). If no settlement occurs, both parties are required to submit their Position Papers.
Decision: The Labor Arbiter (LA) will then render a decision based on the evidence provided.

5. Claims for Damages and Attorney’s Fees

In cases where the delay is proven to be in bad faith, malicious, or oppressive, an employee may also pray for:

Moral Damages: For mental anguish or serious anxiety caused by the delay.
Exemplary Damages: To set a public example and deter other employers from similar conduct.
Attorney’s Fees: Under Article 111 of the Labor Code, in cases of unlawful withholding of wages, the culpable party may be assessed attorney's fees equivalent to 10% of the amount of wages recovered.

6. The Issue of Clearance

A common defense used by employers is the "Clearance Process." While employers have the right to ensure that an employee has returned company property (laptops, IDs, etc.) before releasing final pay, this process cannot be used as an indefinite excuse to bypass the 30-day rule.

The Supreme Court has consistently held that the withholding of an employee's wages and benefits cannot be used as a leverage for the settlement of other obligations unless explicitly allowed by law or if the employee's liability is clearly established (e.g., proven loss or damage to company property).

Summary Table: Action Plan

Step	Action	Venue
1	Written Demand Letter	Employer's HR/Office
2	File for SENA	DOLE Regional Office
3	Formal Complaint	NLRC (Labor Arbiter)
4	Position Paper Submission	NLRC