Unpaid Salary and Cash Bond — How to Demand and Recover from an Employer (Philippines)

Philippine context. General information for workers and HR; not legal advice.

1) The basics

Wages must be paid in full and on time. Employers cannot delay, deduct, or withhold wages except in narrow, lawful cases.
“Cash bonds” (e.g., for uniforms, tools, accountability positions) are not earnings; they are trust funds held for a specific, lawful purpose and must be returned at separation unless a proven, due-process-tested liability exists.
Money claims arising from employer–employee relations (unpaid salary, overtime, holiday pay, 13th month, illegal deductions, unreleased cash bond) generally prescribe in 3 years from when each amount became due.
Legal interest (6% p.a.) commonly applies to sums wrongfully withheld, counted from your extrajudicial or judicial demand until full payment.

2) What employers may and may not do

Lawful wage deductions (examples)

Statutory: SSS/PhilHealth/Pag-IBIG, withholding tax.
Union dues/agency fees: with a valid CBA/authorization.
Employee-authorized deductions: clear, written, and for a lawful purpose (e.g., salary loans).
Court/administrative orders: garnishment, etc.

Unlawful or suspect practices (often struck down)

Withholding last pay until “clearance” without a specific, quantified lawful basis.
Forfeiting cash bonds without investigation, proof of loss/fault, and written policy.
Across-the-board “shortage” deductions without due process (especially for pilferage/breakages typical of business risk).
“Non-refundable” security deposits masquerading as cash bonds.
Charging business losses (e.g., shrinkage, bad debts) to rank-and-file without fault.

Due process for liability: (1) written notice of the charge, (2) opportunity to explain/defend, (3) written decision before any application of the bond or wage deduction.

3) Cash bonds: when allowed and how they must be handled

Must be for a legitimate, disclosed purpose (e.g., loss prevention for cash custodians; uniform issuance) stated in company policy/contract.
Must be receipted upon collection and segregated (treated as fiduciary). Employers should be able to account for it on demand.
Return in full when purpose ends (e.g., end of employment, return of items) unless a specific, proven loss is attributable to the worker after due process.
No blanket forfeiture. Any application must be only up to the proven loss, with documentation (e.g., audit, receipts of repair/replacement), and net of depreciation where applicable.
Interest: If held for long or wrongfully withheld, courts commonly award 6% legal interest on the refundable amount from demand.

(Security agencies, cash-handling posts, and similar sectors often have special rules requiring that bonds be deposited and that interest accrue to the worker; ask for the policy and bank proofs.)

4) What counts as unpaid salary (and related wage claims)

Basic pay for work rendered.
Overtime/night shift/holiday/rest day premiums when legally or contractually due.
Service incentive leave conversion (if not used and convertible under law/policy).
13th month pay (normally due by December each year; prorated upon separation).
Differentials (e.g., minimum wage increases, CBA adjustments).
Final pay upon separation (there is DOLE guidance to release within ~30 days absent a shorter company rule).

5) Evidence you should assemble

Employment contract/appointment letter and company handbook/policies.
Payslips, payroll records, bank credits, time sheets, overtime approvals.
Cash bond receipts, policy on bonds, any acknowledgments of receipt/return of items.
Emails/texts demanding payment or acknowledging unpaid amounts.
Clearance forms, separation notice, certificate of employment.
Your computation (see template below).

Burden of proof: You show entitlement and non-payment; the employer must prove full payment (with payroll/payslips) or a lawful basis for deductions/forfeiture.

6) Step-by-step recovery strategy

Step 1 — Formal demand

Send a written demand letter (email + hard copy if possible) that:

itemizes unpaid salary and benefits (by pay period),
identifies the cash bond and basis for refund,
gives a bank account for payment and a firm deadline (e.g., 10 banking days),
asks for payroll and bond accounting records,
states that 6% legal interest will run after your demand.

(Keep proof of sending/receipt.)

Step 2 — SEnA (conciliation–mediation at DOLE)

If the demand is ignored or disputed, file a Request for Assistance (RFA) under Single-Entry Approach (SEnA) at the DOLE Regional/Field Office where the employer is located.

A SEnA Desk Officer will call both sides for a free, speedy conciliation.
You can settle and have the employer pay on the spot or under a short schedule.

Step 3 — File a case if unresolved

NLRC (Labor Arbiter): File a money claims complaint (and illegal dismissal, if applicable).
- Reliefs: unpaid wages/benefits, refund of cash bond, damages/attorney’s fees in proper cases, plus 6% interest.
- No filing fees for workers at the outset; simplified pleadings are accepted.
DOLE money claims route may apply in specific, uncomplicated wage cases (practice varies); when in doubt, go NLRC.
OFWs: Contract money claims go through the NLRC (migrant workers jurisdiction), often with POEA/DMW contract standards.

(Barangay conciliation usually does not apply to labor disputes; SEnA is the correct front door.)

7) Computation templates

A) Unpaid salary & benefits

Net basic pay due (by cutoff) ……………………………………… ₱___
Overtime/night shift/holiday premiums …………………………… ₱___
13th month differential (prorated) ………………………………… ₱___
SIL conversion / other benefits …………………………………… ₱___ Subtotal …………………………………………………………… ₱___

B) Cash bond

Cash bond collected (attach receipts) ……………………………… ₱___
Less: proven loss/damage (attach documents) ………………… ₱___ Refundable bond …………………………………………………… ₱___

Grand total (A + B) ……………………………………………… ₱___ Add legal interest (6% p.a.) from [date of demand] until paid.

8) Quitclaims and waivers

A quitclaim does not automatically bar claims. Courts disregard or reduce quitclaims if:
- not voluntary,
- unclear or unconscionable consideration (too small), or
- employee did not fully understand rights waived.
If you signed one under pressure or for a token amount, you may still recover the difference between what you received and what is legally due.

9) Special issues & defenses (and how to respond)

“We’re withholding last pay pending clearance.” → Clearance is administrative; employer must release the undisputed portion. They need proof for any amount they’re netting against your claim.
“You caused a shortage; we’ll forfeit the bond.” → Demand investigation records, specific loss computation, and proof of fault. Business risk ≠ employee liability. Any deduction must follow due process, be proportionate, and documented.
“You resigned without notice.” → Lack of notice may justify limited damages if stipulated, not blanket forfeiture of wages/bond. Employers must still pay earned wages.
“You broke company property, so we’ll deduct the new price.” → Only actual, supported costs, typically net of depreciation, can be charged—after due process and, for wage deductions, written authorization.

10) Timelines, prescription, and interest

Demand quickly and document dates.
3-year prescription for money claims (each cutoff has its own clock).
6% legal interest accrues from your demand (if the amount is ascertainable) or from filing (if not) until full payment.

11) Remedies you can ask for (menu in a complaint)

Unpaid salaries and benefits (itemized).
Refund of cash bond (with accounting and interest).
Nominal/moral/exemplary damages (for bad faith or oppressive conduct).
Attorney’s fees (typically 10% in proper cases).
Certificate of employment (if being withheld).
Orders to release payroll/HR records relevant to your claim.

12) Practical pro-tips (for workers)

Keep personal copies of payslips, schedules, approvals, and bond receipts.
Communicate in writing; confirm verbal discussions by email.
In your demand, attach your computation and set a clear deadline.
Use SEnA—many cases settle there fast.
Don’t miss the 3-year window; file before it lapses.

13) Practical pro-tips (for HR/employers)

Put cash bond policies in writing; specify purpose, handling, and return.
Receipt and segregate bonds; account upon request.
Never forfeit without due process and proof; release the undisputed balance promptly.
Pay final wages within your stated policy (or ~30 days is widely observed).
Preserve payroll records (you bear the burden to prove payment).

14) One-page demand letter scaffold (fill-in-the-blanks)

Re: Demand for Unpaid Salary and Refund of Cash Bond Date: [●]

Dear [Employer/HR],

I write to demand payment of the following sums lawfully due to me:

Unpaid wages/benefits (itemized by period) totaling ₱[●]; and

Refund of cash bond of ₱[●], collected on [dates], less any lawful, proven charge supported by documents.

Please remit ₱[●] to [bank details] within 10 banking days of receipt. Failing that, I will seek relief through DOLE SEnA and, if needed, the NLRC, and I will pursue legal interest (6% p.a.) and fees.

Kindly provide, within 5 days, copies of: my payroll/payslips for [period], the bond ledger/accounting, and any documents you believe support deductions.

Sincerely, [Worker] / [Address/Contact]

15) Key takeaways

Wages are sacrosanct. Employers must pay what is earned and may deduct only on lawful grounds.
Cash bonds are trust funds, not profit. They must be returned unless there is a specific, proven loss after due process.
Use Demand → SEnA → NLRC. Keep within 3 years and compute 6% interest from demand.
Quitclaims are not bulletproof; courts protect workers from unconscionable waivers.

Need help turning your facts into a claim?

Share (1) your payslips and bond receipts, (2) the periods unpaid, and (3) any HR emails/policies. I can draft a filled-out demand letter and a SEnA/NLRC complaint outline with computations you can file right away.