Salary Claims After “AWOL” Resignation in the Philippines

A comprehensive legal guide for employees, employers, and HR practitioners

1. What “AWOL” Means in Philippine Labor Law

Term	Practical Meaning	Legal Classification
AWOL (absence without official leave)	An employee suddenly stops reporting for work without any formal notice or permission.	Often treated by employers as abandonment of work, which is a just cause for dismissal under Article 297 [formerly 282] of the Labor Code.

Key point: Simply going AWOL is not an automatic resignation. To lawfully terminate the employment, the employer must still comply with two-notice and hearing requirements for abandonment-related dismissal.

2. Final Pay vs. Salary Claims

Item	Is the employee still entitled?	Notes
Accrued wages up to last day actually worked	Yes. Wages earned are property rights that cannot be forfeited.
Pro-rated 13th-month pay	Yes, for service actually rendered. (Presidential Decree 851; DOLE Handbook on Workers’ Statutory Monetary Benefits)
Service Incentive Leave (SIL) conversion	Yes, if company has ≥ 10 workers and SIL was not fully used.
Separation pay	No, when dismissal is for just cause (e.g., abandonment).
Retirement benefits	Only if the employee has met both the minimum service age and tenure under Art. 302 (formerly 287) or the CBA/plan. AWOL alone does not bar statutory retirement.
Unpaid bonuses / commissions	Yes, if they are non-discretionary or contractually promised and the performance metrics were met before AWOL.

3. Employer’s Right to Make Deductions or Set-Off

Article 113 allows wage deductions only when:

Authorized by law (e.g., taxes, SSS, Pag-IBIG, PhilHealth);
Authorized in writing by the employee for payment to a third party; or
Through a CBA or arbitration award.

Therefore: Unreturned laptop, uniforms, training costs, or bondable shortages cannot be unilaterally deducted from the last pay unless the employee previously executed a clear written authorization or a CBA clause covers it. Otherwise, the employer must first file a money claim or counter-claim before DOLE/NLRC.

4. Clearance and Release: Are They Mandatory?

Company clearance procedures are internal policies—they do not extinguish the statutory obligation to release final pay.
Under Labor Advisory 06-20 (Final Pay and COE), employers must release final pay within 30 calendar days from date of separation, “except for situations where the employee has monetary obligations to the employer.”
“Quitclaims” or “Release, Waiver & Quitclaim” forms are valid only if:
1. The waiver is voluntary and informed;
2. The consideration paid is reasonable; and
3. The waiver is not contrary to law, morals, public order, or public policy (per Eastern Shipping Lines v. Court of Appeals, G.R. No. 97412, July 12 1994).

An AWOL employee who signs a quitclaim under duress or for a nominal amount may still sue to recover the balance.

5. Filing the Money-Claim Case

Forum	When to Use	Jurisdictional Amount
DOLE-Regional Office (Single-Entry Assistance Desk – SEnA)	Pre-file conciliation mandatory for labor disputes except when urgent injunctive relief is needed.	—
DOLE Regional Director (Article 129)	Pure money claims ≤ ₱5,000 and no reinstatement sought.	≤ ₱5,000
NLRC – Arbitration Branch (Article 224)	Money claims > ₱5,000, or when reinstatement or damages are demanded, or when dismissal is contested.	No ceiling

Prescription: Money claims must be filed within three (3) years from the time the cause of action accrued (Art. 306).

Venue: The employee may choose the docket closest to (a) the place of work, (b) their residence, or (c) the employer’s principal office.

6. Practical Scenarios & How Courts Have Ruled

Scenario	Landmark Case	Result
Employee left for 6 months without notice but demanded unpaid salary	Magsalin v. National Organization of Working Men, G.R. No. 148492 (April 15 2005)	Abandonment existed, dismissal valid but wages earned before abandonment ordered paid.
AWOL due to fear of harassment; employer withheld 13th-month	Classic Roofing Corp. v. Urquiaga, G.R. No. 166836 (Dec 9 2015)	Employer liable for 13th-month; no separation pay.
Signed quitclaim for ₱1,000; later sued	Periquet v. NLRC, G.R. No. 91298 (June 22 1990)	Quitclaim set aside; real entitlements awarded.

7. Step-by-Step Guide for the AWOL Employee Seeking Unpaid Salaries

Gather Records: Time sheets, payroll slips, e-mails, and any document proving actual work and salary rate.
Send a Demand Letter: Even if relations are sour, a formal demand interrupts prescription and demonstrates good faith.
SEnA Request: File the “Request for Assistance” at the DOLE Satellite or Regional Office. Free of charge.
If Unsettled, File a Complaint: Complete the NLRC form stating nature of claim (e.g., “Non-payment of wages, 13th-month pay”). Attach the demand letter and evidence.
Prepare for Employer Counter-Claim: The employer may assert damages for abandonment. Be ready with justifications (medical certificates, security threats, etc.).
Attend Mandatory Conferences: Non-appearance can result in dismissal of the complaint.
Appeal Routes: Decision of the Labor Arbiter → NLRC Commission → Court of Appeals → Supreme Court (on questions of law).

8. Employer Compliance Checklist

Document the Abandonment
- Issue Return-to-Work Notice to the last known address or e-mail.
- After 5-10 days, issue a Notice of Termination citing abandonment.
Compute Final Pay
- Include: last salary, pro-rated 13th-month, SIL pay, unpaid OT/Night Diff/Holiday premiums.
- Exclude: separation pay (for just cause).
Apply Valid Deductions Only
- Secure written authorization if deducting accountabilities.
Release Pay & Certificate of Employment within 30 days.
Secure Quitclaim (Optional but Recommended)
- Explain contents; allow employee to consult counsel.
Keep Records for 3 years (Art. 308). Non-production of records shifts burden of proof to employer.

9. Frequently Asked Questions

Question	Short Answer
Can an employee “forfeit” wages by going AWOL?	No. Wages already earned are protected by Art. 102-103; forfeiture is unconstitutional.
Can the employer charge the cost of AWOL’s replacement?	Not against wages without authorization; may sue separately for damages.
Is clearance a legal prerequisite to pay release?	No, but a reasonable checking period (≤ 30 days per DOLE) is allowed.
Does the employee need to “clear” pending loans first?	Employer may offset only with written consent or court/arbiter order.
*Are statutory benefits prorated up to the date of termination notice* or last day worked?**	Up to the actual last day of work for wages; up to effectivity of dismissal for 13th-month and SIL.

10. Summary of Core Principles

Right to Wages Is Inviolable – AWOL does not erase salary already earned.
Just Cause Bars Separation Pay – Abandonment is dismissal for cause, but final pay still due.
Due Process Still Required – Two-notice rule protects both parties from future suits.
Deductions Need Consent – Employer’s unilateral set-off is strictly limited.
30-Day Release Rule – DOLE’s advisory emphasizes prompt payment; delays invite penalties.
Three-Year Prescription – Act quickly; money claims can die of old age.
Conciliation First – SEnA is the “front door” before NLRC litigation.

Author’s Note

This article is based on the Philippine Labor Code (as renumbered by R.A. 10151), DOLE issuances, and Supreme Court jurisprudence current up to May 25 2025. It is intended for general guidance and should not be considered a substitute for personalized legal advice. For complex or high-value claims, consult a Philippine labor-law practitioner.