here’s a practical, everything-you-need legal guide (Philippine context) to salary delay and non-payment remedies—what’s lawful, what isn’t, your options (employees) and obligations (employers), timelines, penalties, and ready-to-use templates.
1) Big picture
- Wages must be paid on time. The Labor Code requires payment at least twice a month at intervals not exceeding 16 days (unless you’re legitimately on a monthly payroll that still releases within that interval or via authorized exceptions).
- “Cash flow problems” aren’t a defense. Business hardship does not excuse late or non-payment.
- No work, no pay applies to hours not worked—but wages already earned (regular, overtime, night premium, holiday pay, 13th month, etc.) cannot be withheld.
- Non-payment or underpayment can trigger money claims, administrative orders to pay, double indemnity for minimum wage shortfalls, damages, legal interest, and in some cases criminal liability.
2) What must be paid—and when
Basic pay on the published payroll schedule (interval ≤ 16 days).
Wage-related premiums (if applicable):
- Overtime pay (beyond 8 hours)
- Night shift differential (10:00 p.m.–6:00 a.m.)
- Holiday pay / rest-day premium
13th month pay (private sector): on or before 24 December each year (pro-rated if less than a year).
Final pay (separation/quit/termination): best practice and DOLE guidance is within 30 calendar days from separation or earlier if company policy/CBA provides. Also release COE (within 3 days from request) and tax forms.
Service charges (if applicable): distributable to employees as required by law/policy.
Lawful allowances/benefits promised by contract, policy, CBA, or established practice (non-diminution rule).
3) What employers cannot do
- Delay payout beyond lawful intervals.
- Pay below the current regional minimum wage (subject to rare, specific exemptions).
- Make unauthorized deductions (e.g., penalties, “cash bond,” shortages) without legal basis and due process.
- Require deposits for loss or damage or charge losses without clear fault and investigation.
- Withhold wages as discipline (separate due process applies to infractions).
- Impose “pay-when-paid” clauses (subcontractors can’t wait for the client before paying workers).
4) Deductions: what’s allowed
- Statutory: Withholding tax; SSS, PhilHealth, Pag-IBIG contributions.
- Union dues/agency fees: with authorization or CBA.
- Company loans/advances: only with employee’s written consent and within lawful limits.
- Loss/damage: only after due process and clear proof of employee fault; amounts must be reasonable.
- Others: Must be voluntarily authorized in writing and primarily for the employee’s benefit.
5) Documentation you should keep (employees)
- Payslips or screenshots of payroll e-statements.
- Time records/biometrics, schedules, approvals for OT/holiday/rest-day work.
- Employment contract/offer, handbook/CBA pages on pay cycles and benefits.
- De-minimis/allowance policies, bonus letters, prior payroll proofs (to show practice).
- Any demands/complaints sent (emails, chat, letters) and employer responses.
6) Remedies—step by step (fastest path first)
A) Internal escalation (often fixes simple lapses)
- Write HR/Payroll: demand release; attach proofs; give a short, clear deadline (e.g., 5 calendar days).
- Ask for a computation: show gross, lawful deductions, cut-off, and reason for any hold.
B) SEnA (Single Entry Approach) with DOLE
- Mandatory first stop for most labor disputes: free conciliation-mediation at the DOLE Regional/Field Office.
- File a Request for Assistance (RFA) listing unpaid items and dates. Many cases settle within 30 days with a Settlement Agreement (binding; enforceable).
C) DOLE inspection/complaint route
- You may trigger an inspection when there’s systemic non-payment/minimum wage violations. DOLE can issue a Compliance Order directing the employer to pay wage deficiencies, 13th month, etc., often with penalties.
D) NLRC (Labor Arbiter) money claims / illegal deductions
- File a complaint (after SEnA referral). The Arbiter can award unpaid wages, wage differentials, premiums, 13th month, damages, attorney’s fees, plus legal interest.
- Prescription: Generally 3 years from when each wage/benefit became due (file sooner—don’t cut it close).
- Illegal dismissal + unpaid wages: you can combine claims; illegal dismissal actions have a different prescriptive period—consult counsel if both issues exist.
E) Criminal/penal exposure (employer-side)
- Kickbacks, unlawful withholding, or repeated non-payment/minimum-wage violations can give rise to criminal charges (separate from money claims). DOLE referrals are common in aggravated cases.
7) Interests, penalties, and special liabilities
- Legal interest (6% p.a.) on monetary awards typically runs from the date of demand or filing until full payment.
- Minimum wage underpayment can trigger double indemnity (pay the deficiency x2) plus fines.
- Joint and several liability: In labor-only contracting or certain contracting arrangements, the principal can be solidarily liable with the contractor for unpaid wages.
- Bankruptcy/closure: Workers’ wage claims enjoy preference in insolvency/liquidation; coordinate with DOLE and the liquidator/receiver.
8) Final pay & quitclaims
- Final pay should be released within 30 days (or earlier by policy).
- Quitclaims are not automatically valid—they must be voluntary, for a reasonable consideration, and with full understanding. Workers can still recover deficiencies and invalidate quitclaims obtained through fraud, coercion, or unconscionably low consideration.
9) Special sectors & situations
- Contractors/Subcons: Must pay on time regardless of when the client pays. The principal may share liability for unpaid wages.
- Kasambahay (household helpers): Paid at least monthly; entitled to 13th month, SSS/PhilHealth/Pag-IBIG (per thresholds), and other statutory protections.
- Commission-based or piece-rate: Still entitled to minimum wage equivalent for hours/days worked (unless valid exemption) and wage-related benefits where applicable.
- Work stoppage/temporary closure: Employer must promptly pay wages already earned; future pay follows rules on authorized causes (temporary suspension, retrenchment) with notice and pay requirements.
10) Employer playbook (compliance & risk control)
- Lock a predictable pay calendar (≤ 16-day intervals); announce changes in advance.
- Automate timekeeping–payroll integration; reconcile OT/premiums each cut-off.
- Payslips: itemize earnings and each deduction’s legal basis.
- Cash flow buffers for payroll; separate payroll account.
- Document any authorized deductions (written employee consent; investigation records for loss/damage).
- Train supervisors: no withholding of wages as discipline; use proper due process.
- Respond fast to SEnA; settle early to avoid interest/fees and inspections.
11) Employee playbook (quick actions)
- Write a dated demand (email/letter) asking for payment and a breakdown.
- Screenshot HR/payroll replies (or silence).
- File SEnA RFA at the DOLE Regional Office covering your job site.
- Compute conservatively: base pay + premiums + 13th month differentials; attach your math.
- Escalate to NLRC if unresolved; ask for interest, damages, and attorney’s fees where justified.
12) Ready-to-use templates
A. Employee Demand (to HR/Payroll)
Subject: Demand for Release of Unpaid Wages I worked from [dates] with cut-off [cut-offs] but have not received [items: basic pay/OT/holiday/13th month] totaling ₱[amount]. Please release payment within 5 calendar days and provide a payslip-level breakdown (gross, deductions, net). If unresolved, I will seek assistance from DOLE. Thank you.
B. SEnA – Request for Assistance (bullet points to include)
- Employer name, address, payroll cycle.
- Items unpaid and dates due; amount per item.
- Proofs (payslips/time records/contract).
- Relief sought: full payment + legal interest; release of COE/final pay (if separated).
C. Employer Notice of Final Pay Release
We confirm release of final pay for [Name] covering [period] in the amount of ₱[amount] with breakdown attached. COE is available upon request; BIR Form will be issued per schedule.
13) FAQs (quick hits)
- Can my employer pay once a month? Only if the schedule still complies with the Code’s interval rule or a specific lawful scheme applies. Standard private-sector practice is semi-monthly.
- Can they hold my pay for unreturned assets? They can charge proven losses after due process, but may not withhold all wages indefinitely. Setoff must be lawful and reasonable.
- I resigned. Can they delay final pay until clearance finishes? No beyond a reasonable period (commonly 30 days). Clearance shouldn’t be used to stall wages already earned.
- Is 13th month payable to probationary/contractual staff? Yes, for all rank-and-file who worked at least 1 month—pro-rated.
Bottom line
- On-time wage payment is mandatory. Delays and shortfalls are legally actionable.
- Start with a written demand, then move through SEnA → DOLE inspection/NLRC if needed.
- Expect interest, penalties, and potential criminal exposure for serious or repeated violations.
- Employers: build clean payroll processes and pay calendars; Employees: document everything and act quickly (3-year clock on money claims).
This is general information, not legal advice. For edge cases (e.g., complex contracting chains, insolvency, or mixed claims with dismissal), consult counsel or your DOLE Regional Office.