In the Philippine labor landscape, the end of an employment relationship—whether through resignation or termination—triggers specific legal obligations for the employer. Two of the most critical requirements are the release of the employee’s Final Pay and the issuance of a Certificate of Employment (COE). When an employer withholds these beyond the periods mandated by law, the employee has specific legal remedies to compel compliance.

I. The Mandated Timelines

Under Department Advisory No. 06, Series of 2020 issued by the Department of Labor and Employment (DOLE), the following timelines are strictly prescribed:

Final Pay: Must be released within thirty (30) days from the date of separation from service, unless a more favorable company policy or Individual/Collective Bargaining Agreement exists.
Certificate of Employment: Must be issued within three (3) days from the time of the employee’s request.

"Final Pay" (or "Last Pay") typically includes unpaid salary, unused terminal leave credits, proportional 13th-month pay, and the return of any cash bonds or retainers, minus any valid deductions or accountabilities.

II. The Concept of "Labor Clearance"

A common point of friction is the "clearance process." While Philippine jurisprudence (e.g., Milan vs. NLRC) recognizes the employer’s right to withhold wages or benefits until the employee settles their accountabilities or returns company property, this process cannot be used as a tool for indefinite delay.

The employer is expected to complete the clearance process within the 30-day window. If the delay is caused by the employer’s own administrative inefficiency, it is considered a violation of labor standards.

III. Available Legal Remedies

If the 30-day (for pay) or 3-day (for COE) periods have lapsed, an employee may pursue the following steps:

1. Formal Demand Letter

Before initiating litigation, it is standard practice to send a formal, written demand letter via registered mail. This letter should:

State the exact date of separation.
Cite DOLE Department Advisory No. 06-20.
Demand the release of the specific amount and the COE within a fixed period (e.g., 5 to 7 days).
Express intent to file a formal labor complaint if the demand is ignored.

2. DOLE SEnA (Single Entry Approach)

If the demand letter is unsuccessful, the primary administrative remedy is filing a Request for Assistance (RFA) through the Single Entry Approach (SEnA).

Nature: It is a 30-day mandatory conciliation-mediation process.
Goal: To reach an amicable settlement without going to a full-blown legal battle.
Process: A SEADO (Single Entry Assistance Officer) will summon both parties to a conference to resolve the issue of unpaid wages and the withholding of the COE.

3. Filing a Formal Labor Complaint (NLRC)

If SEnA fails and no settlement is reached, the case may be elevated to the National Labor Relations Commission (NLRC). The employee files a formal complaint for:

Non-payment of wages/Final Pay.
Refusal to issue a Certificate of Employment.
Damages and Attorney’s Fees: If the withholding is proven to be in bad faith, the employee may pray for moral and exemplary damages, plus attorney’s fees (usually 10% of the total monetary award).

4. Compliance Visit/Inspection

For general labor standards violations, employees may also report the matter to the DOLE Regional Office having jurisdiction over the workplace. DOLE may conduct a specialized inspection to verify if the company is complying with the 30-day rule for all its employees.

IV. Potential Liabilities for the Employer

Employers who willfully delay or refuse to release final pay and COEs face several risks:

Legal Interest: In cases of delayed payment, the Labor Arbiter may impose legal interest (6% per annum) on the total amount due from the time of judicial or extrajudicial demand.
Administrative Sanctions: Repeated violations can lead to the denial of a "Certificate of Labor Standards Compliance," which is often required for government bidding or business permits.
Criminal Liability (In specific cases): Under the Labor Code, the non-payment of wages may, in certain circumstances, carry penal sanctions, though this is less common in simple final pay disputes.

Summary of Actionable Steps

Step	Action	Authority
1	Send a Formal Demand Letter	Employee / Private Counsel
2	File for SEnA (Conciliation)	DOLE Regional/Field Office
3	File a Formal Complaint	National Labor Relations Commission (NLRC)
4	Claim for Damages	NLRC (if bad faith is present)

The law protects the fruit of the employee's labor. Final pay and the COE are not "parting gifts" from an employer; they are vested rights that must be honored promptly upon the severance of the employment tie.