In the Philippines, project-based employees enjoy the same constitutional right to security of tenure as regular employees, albeit limited to the duration of a specific project or undertaking. When an employer fails to pay the agreed-upon wages for work rendered, it constitutes a violation of the Labor Code of the Philippines and fundamental social justice principles.

Below is a comprehensive guide on the legal framework, rights, and remedies available to project-based workers facing unpaid salaries.

1. Understanding Project-Based Employment

A project-based employee is one whose employment is fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of engagement.

Key Characteristics:

Defined Scope: The work must be specific and distinct from the usual business of the employer, or a specific phase of a larger project.
Definite Duration: The employee must be informed of the project's end date or the specific milestone that signals completion.
Wage Protection: Under Department Order No. 19, Series of 1993, project employees are entitled to all labor standards, including the right to receive timely and full payment of wages.

2. Statutory Basis for Wage Protection

The primary legal basis for claiming unpaid salaries is found in the Labor Code (Presidential Decree No. 442):

Article 103 (Time of Payment): Wages must be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days.
Article 116 (Withholding of Wages): It is unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce them to give up any part of their wages by force, stealth, intimidation, or threat.
Article 113 (Allowed Deductions): Deductions are strictly limited to (a) insurance premiums, (b) union dues, and (c) cases authorized by law or the Department of Labor and Employment (DOLE).

3. Remedies and Legal Actions

If a project-based employee is not paid, they have several tiers of legal recourse:

A. The Single Entry Approach (SEnA)

Before filing a formal case, all labor disputes must undergo mandatory conciliation and mediation through SEnA.

Process: The worker files a Request for Assistance (RFA) at the nearest DOLE Regional or Field Office.
Goal: To reach an amicable settlement or a "Compromise Agreement" within 30 days.

B. Filing a Labor Complaint (National Labor Relations Commission)

If SEnA fails, the worker can file a formal complaint before the Labor Arbiter of the NLRC.

Claims: The complaint can include unpaid salaries, 13th-month pay, holiday pay, and service incentive leaves.
Damages: If the non-payment was done in bad faith, the worker may also claim moral and exemplary damages.
Attorney's Fees: Under Article 111 of the Labor Code, in cases of unlawful withholding of wages, the worker may be awarded attorney's fees equivalent to 10% of the total amount recovered.

C. The "Money Claims" Rule

Under Article 129, the Regional Director of DOLE has the power to hear and decide "money claims" arising from employer-employee relations, provided:

The claim does not include a prayer for reinstatement.
The total amount claimed does not exceed PHP 5,000.00 per employee. (Note: Claims exceeding this amount or involving illegal dismissal fall under the jurisdiction of the Labor Arbiter.)

4. Evidentiary Requirements

To succeed in a claim for unpaid wages, the project-based employee should prepare the following documents:

Employment Contract: Proving the existence of the employer-employee relationship and the agreed-upon rate.
Payslips or Time Logs: Evidence of work performed during the period for which wages are claimed.
Proof of Project Completion: Correspondence, project reports, or photos showing the specific milestone reached.
Demand Letter: While not always strictly required by law, a formal letter sent via registered mail to the employer demanding the unpaid salary serves as strong evidence of the employer's refusal to pay.

5. Specific Scenarios and Defenses

The "No Pay, No Project" Defense

Employers often claim they cannot pay project employees because the client has not yet paid the employer. This is not a valid legal defense. The employer-employee relationship is independent of the contract between the employer and the third-party client. The employer bears the risk of the business.

Illegal Dismissal vs. Project Completion

If an employer terminates a project-based employee before the project is finished without a "just" or "authorized" cause, it is considered Illegal Dismissal. In such cases, the employee is entitled to:

Full backwages (salaries for the unexpired portion of the project).
Separation pay (if reinstatement is not possible).

6. Summary Table of Claims

Type of Claim	Legal Basis	Description
Unpaid Wages	Art. 103, Labor Code	Payment for actual days worked.
13th Month Pay	P.D. No. 851	1/12 of the total basic salary earned within a calendar year.
Service Incentive Leave	Art. 95, Labor Code	5 days of leave with pay for those with at least 1 year of service.
Legal Interest	Civil Code	6% per annum from the date of judicial or extrajudicial demand.

7. Prescription Period

It is critical to act quickly. Under Article 306 (formerly 291) of the Labor Code, all money claims arising from employer-employee relations must be filed within three (3) years from the time the cause of action accrued; otherwise, they shall be forever barred.