Obtaining a Certificate of Employment (COE) in the Philippines
A comprehensive guide for employers, employees, HR practitioners, and lawyers
1. What is a Certificate of Employment?
A Certificate of Employment is a concise written statement issued by the employer confirming a worker’s employment history. It is distinct from a service record, clearance, or NBI-style “character reference.” The COE’s sole purpose is to attest to factual details of the employment relationship.
2. Governing Legal Framework
| Source | Key Provision |
|---|---|
| Labor Code of the Philippines — renumbered Art. 301 (formerly Art. 283) | “The employer shall issue a certificate of employment indicating the dates of engagement and termination and the type of work on which the worker was employed.” |
| DOLE Labor Advisory No. 06-20 (26 March 2020) | – Reiterates Art. 301 duty – Sets 3-calendar-day deadline from receipt of request – Allows electronic issuing (PDF/email) when physical release is impractical |
| DOLE Handbook of Workers’ Statutory Monetary Benefits (2024 ed.) | Lists COE as a statutory right; non-issuance is a violation subject to DOLE inspection fines |
| Batas Pambansa No. 22 (re dishonored checks) & Revised Penal Code | Relevant only if employer issues false statements amounting to falsification |
Note: Unlike other statutory benefits, the COE duty applies to all employers, regardless of size, industry, or employment status (regular, project-based, probationary, contractual, etc.).
3. Mandatory Contents
- Complete name of the employee (as reflected in payroll records)
- Position / nature of work
- Inclusive dates of employment (start and end; “to present” if still employed)
These three items are exhaustive under Art. 301. DOLE advises against inserting derogatory remarks or performance appraisals.
Optional but common additions
- Company letterhead and corporate dry-seal
- Monthly or daily salary rate (if requested)
- Statement that employment ended “without prejudice,” “due to resignation,” etc. (per employee’s written request)
4. When and How Must It Be Issued?
| Scenario | Employee Action | Employer’s Deadline |
|---|---|---|
| Still employed | Written or verbal request to HR | Within 3 calendar days |
| Termination / resignation | Employer must issue motu proprio on last day or within 3 days of request | |
| Mass lay-off / retrenchment | May attach COE to final pay packets | Same 3-day rule applies |
| Remote work / lockdown | PDF scan or secure e-signature acceptable under LA 06-20 |
DOLE’s “3-day rule” is counted in calendar days, not workdays.
5. Fees and Charges
- No fee may be imposed except minimal reproduction cost (e.g., P2-P5 per page for notarized hard copy).
- Electronic copies must be free.
- Charging an exorbitant fee is considered an “unlawful deduction” (Art. 116, Labor Code).
6. Common Employer Misconceptions
| Myth | Correct Rule |
|---|---|
| COE may be withheld until clearance is completed. | False. The COE is independent of clearance. Clearance may delay final pay, but not COE issuance. |
| Only resigned employees are entitled. | False. Even dismissed or project-ended workers may demand a COE. |
| Employer can refuse if employee has a pending case. | False. Pending litigation is irrelevant to the statutory duty. |
| COE may serve as a “character reference.” | False. It should remain factual; separate reference letters cover character or performance. |
7. Remedies for Employees
- HR follow-up (retain proof of request: email, chat, or received letter).
- DOLE Single-Entry Approach (SEnA) — free 30-day conciliation.
- Labor standards complaint at DOLE Regional Office — for money claims and compliance orders; may result in fines ₱1,000–₱10,000 per affected worker.
- NLRC money claim — if refusal causes measurable damages (e.g., lost job offer).
- Article 303 Criminal Action (rare) — for repeated willful refusal, punishable by fine ₱1,000–₱10,000 and/or imprisonment 3 months–3 years.
8. Selected Jurisprudence
| Case | G.R. No. | Ratio |
|---|---|---|
| Madrigal v. CA | 123 353 (1999) | Employer’s refusal to issue COE may be evidence of bad faith & entitles worker to moral damages. |
| Phil. Global Communications v. De Veyra | 152 098 (2004) | COE must not contain derogatory statements; libelous COE gives rise to damages. |
| Cebu Royal Plant v. Deputy Executive Labor Arbiter | 470 15 (1981) | Right to COE survives even if employee was lawfully dismissed for cause. |
9. COE vs. Service Record vs. Clearance
| Document | Issued by | Legal Basis | Core Data | Usual Use |
|---|---|---|---|---|
| Certificate of Employment | Any employer | Art. 301 & LA 06-20 | Position & dates | Job application, visa |
| Service Record (Gov’t) / Employment History (Private) | Public: HRMO Private: Employer upon request |
CSC rules / DOLE advisories | Full chronological record incl. salary history | SSS/GSIS, retirement |
| Clearance | Employer | Company policy | Confirms no accountability | Release of final pay |
10. Best-Practice Checklist for HR
- Create a COE request form (physical & online).
- Maintain a COE template with fill-in fields; avoid adjectives.
- Assign a turn-around SLA of 24 hours to beat the 3-day rule.
- Use digital signatures and QR-code verification.
- Keep COE logbook for DOLE inspection compliance.
- Train staff to resist adding “rehire not recommended” remarks.
11. Frequently Asked Questions
| Question | Answer |
|---|---|
| Can the employee demand multiple copies? | Yes. Provide at least one free; reasonable copying cost for extras. |
| Must it be notarized? | Not legally required unless destination agency asks; employee shoulders notarization fee. |
| May an employer revoke a COE already issued? | Only to correct clerical errors; any subtraction of tenure or falsification exposes employer to liability. |
| Does a project-based employee get a separate COE per project? | One comprehensive COE is enough, but multiple project COEs are permissible. |
| Is “salary information” mandatory? | No. Include only if the worker expressly requests it. |
12. Penalties for Non-Compliance
- Labor Standards Fine: up to ₱10,000 per employee under DOLE’s schedule of penalties.
- Criminal Liability: Art. 303, 3 months–3 years imprisonment (rarely invoked).
- Civil Damages: For lost job opportunities, moral damages, exemplary damages, plus attorney’s fees (Art. 2208, Civil Code).
- Reputational Harm: Adverse finding in DOLE inspection reports—may affect government bidding qualification and PEZA/BOI incentives.
Conclusion
The Certificate of Employment is not a mere courtesy; it is a statutory right. Compliance is simple, inexpensive, and benefits both parties—employees gain a portable credential, while employers demonstrate good governance and avoid sanctions. HR departments should institutionalize a friction-free request system, use plain-fact templates, and rigorously observe the 3-day deadline. Conversely, employees should know that anytime—whether actively employed, newly resigned, or even after contentious dismissal—they may legitimately demand a COE and can invoke DOLE’s aid if met with refusal.
Need more help? Consult a labor lawyer or approach the nearest DOLE Field Office for free assistance.