Unpaid Wages in the Philippines: How to File a DOLE Complaint and Recover Salary

Unpaid Wages in the Philippines: How to File a DOLE Complaint and Recover Salary

Philippine legal guide for employees and HR. This is practical information, not a substitute for advice from your own lawyer.


TL;DR

If your employer hasn’t paid your salary or benefits, you can (1) gather proof, (2) try a short written demand, then (3) file a Request for Assistance (RFA) under DOLE’s Single Entry Approach (SEnA) for free, 30-day conciliation. If that fails, you may proceed with either (A) DOLE enforcement (labor standards/inspection route) or (B) a formal case before the NLRC Labor Arbiter (especially for claims above ₱5,000 per worker or when illegal dismissal is involved). Money claims generally prescribe after 3 years from when they became due; illegal dismissal actions are typically 4 years.


What “unpaid wages” covers

“Unpaid wages” can mean any legally due pay or benefit not fully paid on time, including:

  • Basic salary (including final pay upon separation)
  • Overtime (OT) (beyond 8 hours/day: +25% of hourly rate; if on rest day/holiday: higher premiums)
  • Night shift differential (work between 10:00 p.m. and 6:00 a.m.: +10%)
  • Holiday pay (regular/special days; rates vary)
  • Rest-day premium pay
  • Service Incentive Leave (SIL) conversion (generally 5 days/year if unused and applicable)
  • 13th-month pay (pro-rated; due not later than Dec 24 each year)
  • Minimum wage differentials (if paid below wage orders)
  • Allowances and benefits that have ripened into a company practice or are promised by contract/CBAs
  • Separation pay (when legally required—e.g., certain authorized causes)
  • Withheld last pay beyond reasonable processing

Note: Government employees follow Civil Service/COA processes, not DOLE/NLRC. Seafarers and OFWs have special rules—see “Special situations” below.


Core legal bases (plain-English map)

  • Labor Code of the Philippines (as amended): wage rules, benefits, enforcement, and remedies.
  • Wage Orders by each Regional Tripartite Wages and Productivity Board (RTWPB): set regional minimum wages.
  • PD 851 (13th-Month Pay) and its rules.
  • RA 8188 (Double Indemnity): underpayment of minimum wage can lead to double the deficiency plus penalties.
  • DOLE IRR (Implementing Rules): details on deductions, SIL, OT, holiday/rest day pay, etc.
  • RA 10361 (Batas Kasambahay): domestic workers’ rights.
  • RA 7730: bolsters DOLE’s visitorial/enforcement power (compliance orders) beyond the old ₱5,000 limit when claims arise from inspection findings.

Before you file: quick self-check

  1. Deadline (Prescription):

    • Money claims from employment: 3 years from when each claim fell due.
    • Illegal dismissal: generally 4 years to sue for reinstatement/backwages.
  2. Evidence you can readily gather:

    • Employment contract/offer/handbook, IDs
    • Payslips, payroll screenshots, bank statements
    • Time records (DTR/biometrics), schedules, OT approvals
    • Chats/emails about pay/benefits, resignation letters, clearance steps
    • Company policies on pay cycles and final pay
  3. Check deductions: employer can only deduct if allowed by law (e.g., tax, SSS/PhilHealth/Pag-IBIG) or with your written consent, or to recover proven losses after due process and not exceeding 20% of wages per payday.


Step 1 — Try a short written demand (optional but helpful)

Many cases settle fast if you send a polite demand letter enclosing proof and giving a clear deadline (e.g., 5–10 days). Keep it factual; ask for a written response. See template at the end.


Step 2 — File a DOLE SEnA RFA (the fast, free conciliation route)

SEnA (Single Entry Approach) is an accessible 30-calendar-day conciliation-mediation program:

  • Where: Any DOLE Regional/Provincial/Field Office; file a Request for Assistance (RFA).

  • Cost: Free. Lawyers are optional.

  • What happens: A SEnA Officer schedules a conference, mediates, and tries to help you and the employer reach a settlement (e.g., release of wages, payment plan).

  • Outcome:

    • Amicable settlement (you’ll sign; ensure terms and dates are specific).
    • Referral to the proper forum if unresolved (NLRC or a DOLE unit, depending on the issue).
  • Tip: Bring copies of your evidence and a simple computation of what you’re owed.

Quitclaims/waivers: Valid if voluntary and reasonable; courts may set aside those signed under duress, for unconscionably low amounts, or with deception.


If SEnA fails: choosing the right path

A) DOLE enforcement/inspection path (labor standards compliance)

  • Good for non-payment or underpayment of wages/benefits affecting you (and often co-workers).
  • You can request inspection or raise the issue during SEnA.
  • DOLE may inspect, then issue a Notice of Result and, if warranted, a Compliance Order compelling the employer to pay.
  • Under visitorial/enforcement power, DOLE can order payment regardless of amount when the case stems from inspection findings (thanks to RA 7730).
  • Employers can appeal a compliance order to the DOLE Secretary (generally within 10 days), typically with a bond when monetary awards are involved.

B) NLRC (Labor Arbiter) case (adjudication/litigation)

  • File here if you need a formal decision on:

    • Money claims (especially above ₱5,000 per worker outside inspection cases),
    • Illegal dismissal (reinstatement/backwages),
    • Claims involving damages or issues beyond pure wage computation.
  • Process snapshot:

    • File a Complaint (can be pro se).
    • Mandatory conferences for mediation/issue-framing.
    • Submit position papers with evidence.
    • Decision by Labor Arbiter.
    • Appeal to the NLRC Commission within 10 calendar days from receipt.
    • Employer appeals with monetary award require a bond equal to the award (cash or surety from a reputable company).
    • After finality, a writ of execution may be issued; sheriffs can garnish bank accounts/receivables or levy property.

Small money claims before DOLE Regional Directors (classic Art. 129) still exist for simple wage claims not exceeding ₱5,000 per employee (no reinstatement). Above that—and for complex disputes—NLRC is the usual track unless DOLE proceeds via inspection/enforcement.


Computing what you’re owed (practical formulas)

Use your basic daily/hourly rate shown in payslips or contract. When records are missing, credible estimates and sworn statements help; employers are legally required to keep time and payroll records, and gaps are taken against them.

  • Hourly rate (HR): HR = (Monthly basic pay × 12) ÷ (52 weeks × 40 or 48 hours) (Use your company’s standard hours; many calculate based on 313 or 261 working days—stay consistent.)

  • Overtime (OT):

    • Regular day OT: OT pay = OT hours × HR × 1.25
    • Rest day/Special day OT: commonly × 1.30 (plus OT premium if beyond 8 hours)
    • Regular holiday (no work): usually 100% of daily rate; if worked: typically 200%; OT on top if >8h.
  • Night Shift Differential: NSD = hours worked (10pm–6am) × HR × 0.10

  • Rest-day premium (if worked): Hours within 8h × HR × 1.30 (company/CBAs may be higher)

  • Service Incentive Leave (SIL) cash conversion: Unused SIL days × daily rate (generally 5 days/year if applicable)

  • 13th-Month Pay: (Total basic salary earned in the calendar year ÷ 12) (Pro-rated if you resigned/terminated mid-year.)

  • Minimum wage differentials: (Regional minimum − your basic rate) × days actually worked (If paid below wage order, double indemnity may apply.)

Taxes/SSS/PhilHealth/Pag-IBIG: Lawful withholding may still apply on payouts.


Evidence & burden of proof

  • Employer records rule: Employers must keep and present payroll, time, and wage documents. If they can’t, reasonable employee estimates often prevail.
  • What to attach: Payslips, bank statements, DTR/biometrics, schedules, OT approvals, chats/emails, IDs, contract/handbook, resignation/clearance papers.
  • Witness statements: Co-worker affidavits help, especially in pattern underpayments.

Timing, fees, and costs

  • Prescription:

    • 3 years for money claims (wages, benefits, differentials).
    • 4 years for illegal dismissal.
  • SEnA: Free.

  • NLRC filing: Employees typically pay no filing fee at the start; appeals have fees and, for employer appeals with awards, a bond equal to the monetary award is mandatory.

  • Lawyers: Optional. Non-lawyer reps (e.g., union officers) may appear with authority. Settlements often happen at conference stage.


How enforcement works (after a win)

  • NLRC Decision: After finality, a writ of execution issues. Sheriffs can garnish bank accounts/receivables, levy movable/immovable property, and conduct auction as needed.
  • DOLE Compliance Order: Employer must pay or appeal (with bond when monetary awards are involved). Non-compliance can lead to further sanctions and closure orders in serious cases.
  • Double indemnity (minimum wage cases): Underpayment can be doubled.
  • Solidary liability: If you were deployed via a labor-only contractor, the principal and contractor can be held jointly and solidarily liable for unpaid wage claims.

Special situations

  • Illegal dismissal + unpaid wages: File at NLRC to seek reinstatement and full backwages (from dismissal date to actual reinstatement or finality of judgment), plus wage/benefit differentials if any.
  • Contracting/outsourcing: If contractor is labor-only, the principal is solidarily liable for labor standards violations.
  • Company closure/insolvency: Workers’ monetary claims enjoy preference over other creditors as provided by law; coordinate with DOLE and, where applicable, insolvency courts.
  • Domestic workers (Kasambahay): Protected by RA 10361 (written contract, minimum wage by area, SSS/PhilHealth/Pag-IBIG, days off). You may report to DOLE and also seek barangay assistance for household employment disputes.
  • OFWs/Seafarers: Money claims and illegal dismissal cases are filed with NLRC Labor Arbiters; the recruitment agency and foreign principal can be solidarily liable under standard contracts and law. DMW/POEA rules also apply.
  • Government employees: Generally outside DOLE/NLRC jurisdiction—follow CSC/COA processes.

Practical FAQs

Can my employer delay final pay until clearance? They may process clearances, but final pay should be released within a reasonable period (commonly referenced as within 30 days by DOLE issuances), unless a shorter period is set by company policy/CBA.

Can my employer deduct for uniforms, shortages, or losses? Only with due process and if you are clearly responsible; deductions must be fair, not exceed actual loss, and usually capped at 20% of wages per payday.

Do I need a lawyer? Not required. SEnA is mediation-focused. At NLRC, many workers appear pro se; a lawyer can help with strategy, evidence, and appeals.

Can I settle and still complain later? A reasonable, voluntary settlement with a valid quitclaim may bar later claims. If the amount is shockingly low, or consent was coerced, you may challenge it.

What if my employer refuses to attend SEnA? SEnA can end in non-settlement; you’ll receive a referral to NLRC or the proper DOLE unit, and you can proceed with a formal case or inspection request.


Step-by-step checklists

Documents to bring

  • Valid ID
  • Contract/offer/handbook/company memos
  • Payslips, payroll screenshots, bank statements
  • DTR/biometrics, OT approvals, schedules
  • Chat/email proof, demand letter (if any)
  • Your computation (see formulas above)

At SEnA (RFA)

  1. Fill out the RFA (your details, employer details, issues, amount claimed).
  2. Attend the conciliation conference(s).
  3. If settlement: read the terms carefully and confirm dates/amounts.
  4. If no settlement: request referral (NLRC or DOLE compliance path).

If filing at NLRC

  1. Prepare a Complaint stating parties, facts, causes of action, clear prayer (what you want), and your computation.
  2. Attend conferences; submit position paper with evidence.
  3. Track deadlines (appeal is 10 calendar days from receipt of decision).
  4. If you win and the employer doesn’t pay, move for execution.

Simple templates (copy-paste and customize)

A. Short demand letter (pre-SEnA)

Subject: Demand for payment of unpaid wages/benefits

Dear $HR/Owner$, I am $name$, employed as $position$ from $start date$ to $present/end date$. As of today, the following remain unpaid: $describe items and amounts; attach computation and proof$.

Kindly release payment within $5–10$ days from receipt of this letter. If unresolved, I will seek assistance from DOLE/NLRC.

Thank you. $signature, contact info$

B. SEnA — Request for Assistance (points to include)

  • Parties’ names/addresses/contact details
  • Nature of complaint: non-payment/underpayment of wages/benefits
  • Period covered and amount claimed (attach computation)
  • Relief sought: immediate payment of salary/benefits and compliance with wage laws
  • Availability for conferences; preferred contact method

C. NLRC complaint — key headings

  • Parties (your name/address; employer’s legal name/address)
  • Allegations of fact (employment, pay cycle, what was unpaid, attempts to settle)
  • Causes of action (e.g., non-payment of wages, OT, 13th-month, wage order violations; illegal dismissal if applicable)
  • Prayer (specific amounts; interest; attorney’s fees if warranted; reinstatement/backwages if dismissed)
  • Attachments (ID, contract, payslips, DTR, bank statements, chats, computation, demand letter, SEnA referral)

Common employer defenses & how to respond

  • “No work, no pay.” True for absences/suspensions—but work actually rendered must be paid; wage law benefits (e.g., holiday pay) apply under their rules even without work on some days.

  • “You’re exempt from OT.” Only certain bona fide managerial or field personnel are OT-exempt. Job title alone isn’t decisive; actual duties matter.

  • “You consented to deductions.” Consent must be written and informed; deductions for losses require proof of employee fault and due process; 20% cap generally applies.

  • “We’ll pay once clearance finishes.” Final pay should be released within a reasonable period (commonly treated as within 30 days by DOLE guidance) unless a shorter period applies by policy/CBA.


Strategy tips

  • Be organized: A neat timeline and computation sheet often wins the day.
  • Think group filing: If many are affected, DOLE inspection/enforcement can be efficient.
  • Calculate interest: Decisions often include legal interest on monetary awards (rate varies by period per Supreme Court rules).
  • Appeals: For employers, appeal bonds are serious—lack of a proper bond can doom an appeal. For workers, consider the time-value and certainty of a fair settlement.

Quick decision tree

  • Still employed and simply unpaid/underpaid? Start with SEnA; consider DOLE inspection/enforcement.
  • Underpayment below ₱5,000 per worker and simple? DOLE RD small money claims may be available.
  • Illegal dismissal or complex/large claims? NLRC case.
  • OFW/Seafarer? NLRC jurisdiction; check standard contracts.
  • Domestic worker? Batas Kasambahay + DOLE + barangay assistance.

If you want, I can turn your facts and payslips into a clean computation sheet and a ready-to-file RFA/Complaint draft—just share the numbers (no need for real names yet).

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.