Partial Salary Non-Payment & Resignation in the Philippines

A comprehensive legal primer (July 2025 edition)

1. Why this matters

Failing to receive one’s full salary—even if the employer pays “something”—cuts straight to the constitutional right of workers to “a living wage and humane conditions of work.” (1987 Const., Art. XIII §3). Philippine labour law treats delayed, under- or non-payment of wages as a serious breach that may:

expose the employer (and its officers) to criminal, civil, and administrative liability;
give the worker an immediate just cause to resign without serving the usual 30-day notice; or
ripen into constructive dismissal, entitling the employee to reinstatement with back-wages or separation pay in lieu.

2. Core statutory framework

Instrument	Key provisions on wages
Labor Code (PD 442, as renumbered 2022)	Art. 102 (Form of Payment); Art. 103 (Time of Payment – at least twice a month within 15 days); Art. 116 (Withholding or interference unlawful); Art. 288 (criminal penalties); Art. 300 [285] (Employee termination with just cause); Art. 306 (3-year prescriptive period for money claims).
RA 6727 (Wage Rationalization Act)	Sets the mechanism for regional minimum wage orders; non-payment or underpayment violates both the statute and the wage order.
PD 851 (13th-Month Pay)	Requires payment not later than 24 Dec each year.
RA 7641 (Service Incentive Leave conversion)	Monetisation of unused leave upon separation.
RA 10361 (Domestic Workers Act)	Mirrors Labor Code wage protections for household helpers.

Note on terminology Partial salary non-payment = any instance where an employer remits less than the amount earned for work actually performed. It covers delayed balance payments, systematic under-payment of the minimum wage, or failure to remit wage-related benefits (13th-month pay, SIL, holiday pay, night-shift differential, SSS/PhilHealth/Pag-IBIG contributions).

3. Employer’s obligations & prohibitions

Full and prompt payment. Wages must be paid in legal tender or through a channel consented to in writing by the worker (bank payroll, e-wallet, etc.).
Frequency. At least twice a month, within 15 days of the end of each pay period (Art. 103).
No unilateral deductions except those authorised by law (taxes, SSS, etc.) or by a written employee consent for a valid purpose (Art. 113).
Final pay. Under DOLE Labor Advisory 06-20, all sums due on separation (wages, 13th month pro-rata, SIL, etc.) must be released within 30 days from effectivity of resignation or dismissal.

Violation exposes — beyond NLRC money claims — the employer, directors, managing officers, and even the payroll supervisor to fine and/or imprisonment of up to three (3) years under Arts. 288 & 303 of the Labor Code (criminal aspect is separate from labour claims).

4. Resignation for just cause vs Constructive dismissal

4.1 Just-cause resignation (Art. 300 [285])

An employee may quit without serving the 30-day notice if the employer commits:

“Serious insult or inhuman treatment”
“Commission of a crime against the employee”
“Other causes analogous to the foregoing.”

Philippine jurisprudence has long classified repeated or deliberate non-payment of wages as an analogous cause. Examples:

Interadent Zahntechnik Phils., Inc. v. NLRC, G.R. No. 117187 (16 Mar 1999) – two-month wage delay justified immediate resignation and damages.
Triumph International v. Apostol, G.R. No. 164423 (27 Jun 2012) – chronic underpayment constituted a grave breach of contract, validating quit without notice.

4.2 Constructive dismissal

If the employee initially stays but the wage breach forces leaving later, the courts characterize the departure as constructive dismissal:

“An act amounting to dismissal but made to appear as if the employee voluntarily resigned.”

Effects:

Reinstatement or separation pay (one month per year of service),
Full back-wages from date of constructive dismissal,
Moral and exemplary damages plus 10% attorney’s fees when bad faith is shown.

5. Practical steps for the aggrieved worker

Step	What to do	Legal basis / notes
1. Demand letter / payroll query	Request full accounting of unpaid wages in writing (keep proof of service).	Shows good faith effort; helpful if seeking damages.
2. DOLE Single-Entry Approach (SENA)	File regional request for assistance (RFA) – free conciliation within 30 days.	Dept. Order 107-10. Satisfies exhaustion before NLRC.
3. NLRC Complaint	Money claims ≤₱5,000 may still be filed with DOLE inspectors; higher amounts and illegal-dismissal claims go to NLRC Arbitration Branch.	Rules of Procedure 2023; 3-yr prescriptive limit (Art. 306).
4. Immediate resignation	If wages remain unpaid, submit a written resignation citing Art. 300 just cause, “effective immediately.”	No 30-day notice required; employer cannot insist on turnover period absent mutual agreement.
5. Criminal action	Sworn affidavit with DOLE or City Prosecutor vs employer/officers for Art. 288 violation.	Prosecution may proceed concurrently with NLRC case.

6. Employer defences & common pitfalls

Force majeure is not a defense; wage obligation is preferred over other expenses.
Financial losses do not justify partial payment (Art. 116’s wording is absolute).
Offsetting unpaid wages against property damage or employee debt is illegal without due process and employee’s written consent.
Quitclaim signed without full payment is invalid. SC cases (e.g., Velasco v. CA, G.R. No. 118644, 1998) void releases executed for less than the full statutory entitlements.

7. Calculation checklist on final pay after just-cause resignation

Earned basic salary to last actual day worked.
Pro-rated 13th-month pay (divide total basic salary earned for the year by 12, multiply by months served).
Service Incentive Leave cash conversion (5 days/yr × daily rate minus leave already used).
Holiday/night shift/OT differentials still unpaid.
Deductions limited to SSS, PhilHealth, Pag-IBIG, tax; any loan deduction needs written consent.

8. Prescriptive periods

Claim	Period	Counting from
Money claims (wages, 13th mo., etc.)	3 years	Date each wage became due (Art. 306).
Illegal/constructive dismissal	4 years	Actual dismissal/forced resignation (Civil Code §1146).
Criminal action for wage withholding	3 years	Commission of offence.

Filing SENA or NLRC complaints interrupts prescription.

9. Corporate-officer liability & piercing the veil

Under Art. 288 and SC jurisprudence (Apex Mining v. NLRC, G.R. No. 94951, 1991), “responsible officers”—those who actively manage the business—may be held solidarily liable with the corporation for unpaid wages and may even face imprisonment upon conviction.

10. Tax, SSS & other collateral issues

BIR Withholding: Even if salary remains unpaid, the employer is forbidden from issuing payslips reflecting withholding tax that was never remitted.
SSS/PhilHealth/Pag-IBIG: Failure to remit the employee’s share but showing deductions on payslips constitutes estafa under the penal clauses of the respective laws.
Data privacy & payslip disclosure: Employers must furnish detailed payslips (Data Privacy Act does not bar it).

11. Sample “Just-Cause Resignation” template

Subject: Immediate Resignation under Art. 300 (Non-Payment of Wages)

Dear [HR/Manager],

Over the past [two] months the company has paid only a portion of my earned wages despite my repeated written demands. This constitutes a serious violation of Articles 102, 103 and 116 of the Labor Code.

Pursuant to Article 300 [285] of the Labor Code, I hereby terminate my employment effective immediately for just cause. Kindly release within thirty (30) days my unpaid salaries, pro-rated 13th-month pay, SIL conversions, and other benefits, plus my Certificate of Employment and BIR Form 2316.

Sincerely, [Name / signature]

12. Practical tips for HR & management

Cash-flow crisis? Negotiate a mutually-accepted temporary wage deferment scheme, filed with DOLE and agreed to by 100 % of affected employees, to avoid criminal liability.
Document payments: Always secure acknowledgment receipts when issuing partial releases.
Set a compliance calendar (15th & 30th, 26 Dec for 13th month, 30 days final pay) with payroll alerts.
Train front-line supervisors: They become “officers” under Art. 288 once they decide on wage disbursement.

13. Emerging issues (2025 outlook)

Digital wage disbursement: BSP Circular 1160 (2023) promotes e-money payroll; employers must still ensure no fees or hidden deductions shift to workers.
Hybrid & gig arrangements: Even independent contractors may retroactively be deemed employees (see DO 174-17) and then claim unpaid “wages.”
Inflation indexation: Regional Wage Boards continue to grant emergency COLA; underpayment of the COLA component equally triggers liability.

14. Take-aways

Paying less than 100 % of a worker’s wages is never a mere “cash-flow hiccup.” It is a statutory breach that can justify instant resignation, trigger constructive dismissal, and expose corporate decision-makers to solidary civil liability and even prison terms. Workers have clear, staged remedies—from DOLE SENA all the way to criminal prosecution—while employers have every incentive to settle fast, document properly, and treat wages as the first, not last, cost of doing business.

Disclaimer: This article is for general information only and does not constitute legal advice. For case-specific guidance, consult a Philippine labour law practitioner or the DOLE regional office.