In the Philippine legal landscape, a Special Power of Attorney (SPA) is a crucial instrument that allows an individual (the Principal) to authorize another person (the Agent or Attorney-in-Fact) to perform specific acts on their behalf. When it involves claiming "Last Pay" or final settlement from an employer, the SPA must be drafted with precision to ensure it is honored by corporate HR and payroll departments.

Nature and Purpose

Under Article 1878 of the Civil Code of the Philippines, a Special Power of Attorney is required for specific acts of strict dominion or those that involve the creation or conveyance of real rights. While claiming a salary might seem like a simple act of administration, most Philippine companies require an SPA because:

Liability: It protects the employer from double-payment claims.
Clearance: The process often involves signing quitclaims, waivers, and release documents which legally extinguish the employer’s liability.
Check Encashment: Banks often require specific authorization to allow a third party to receive or deposit checks issued in another person's name.

Essential Elements of the SPA

To be legally sufficient and practically effective, the document should include the following details:

Parties Involved: Full names, citizenship, civil status, and addresses of both the Principal (the employee) and the Attorney-in-Fact.
The "Grant of Authority": This is the core of the document. It must explicitly state the power to:
Claim, receive, and collect the final pay, 13th-month pay, and other benefits.
Sign the Clearance Form, Quitclaim, and Certificate of Release.
Endorse or deposit checks (if applicable).
Identification: References to valid government-issued IDs for both parties.
The Substitution Clause: Whether or not the Attorney-in-Fact can delegate these powers to someone else (usually omitted for simplicity).

Components of "Last Pay" in the Philippines

Per the Department of Labor and Employment (DOLE) Circular No. 01, Series of 2024, final pay typically includes:

Unpaid earned salary.
Pro-rated 13th-month pay.
Cash conversion of unused Service Incentive Leaves (SIL).
Separation pay (if applicable, e.g., due to redundancy or retrenchment).
Refund of withheld taxes (if any).
Cash bonds or other deposits returnable to the employee.

The Requirement of Notarization

An SPA for claiming last pay must be notarized. Under Philippine law, notarization converts a private document into a public document. This makes it admissible in evidence without further proof of its authenticity and serves as a safeguard against fraud.

Note for Overseas Filipino Workers (OFWs): If the Principal is abroad, the SPA must be Consularized or Apostilled in the country where they are located to be recognized as valid by Philippine entities.

Common Reasons for Rejection

Even with a signed SPA, HR departments may reject the claim if:

Lack of Specificity: The SPA is "General" rather than "Special" and does not specifically mention the employer or the act of signing a quitclaim.
Expired IDs: The IDs presented by the Attorney-in-Fact or the photocopied IDs of the Principal are expired.
Signature Mismatch: The signature on the SPA does not match the signature on file with the company.
Missing Attachments: Failure to provide a photocopy of the Principal’s valid ID (usually two copies with three specimen signatures).

Legal Effects of Signing the Quitclaim

The Attorney-in-Fact must understand that by signing the quitclaim via the SPA, they are effectively declaring that the Principal has no further claims against the employer. In the Philippines, while quitclaims are often scrutinized for "vitiated consent," a quitclaim signed by an authorized representative via a valid SPA is generally binding and terminates the employer-employee relationship with finality.

Requirement	Description
Principal's ID	At least two valid government IDs with specimen signatures.
Agent's ID	Original and photocopy of a valid government ID.
Specific Wording	Must mention "Quitclaim," "Final Pay," and the specific "Employer Name."
Notarial Seal	Must be signed and sealed by a commissioned Notary Public.