Your Last Pay and Proof of Work When You Leave a Job

What DOLE Says

DOLE sets deadlines for your last pay and your proof of work. Labor Advisory No. 06, Series of 2020 (Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment) says:

• Final pay must be released within 30 days from the date of separation (your last day) or termination, unless a better company policy, individual contract or Collective Bargaining Agreement (union contract) applies.
• A Certificate of Employment must be given within 3 days from the employee's request.

The rules apply however the job ended: resignation, end of contract, retrenchment (job cuts to save money), closure, or dismissal.

What Final Pay Includes

Final pay (sometimes called "back pay") is everything the employer still owes you. Depending on your situation it can include:

• unpaid salary for days you worked;
• pro-rated 13th month pay (a share for the months worked in the year);
• cash for unused service incentive leave (at least 5 days of paid leave a year after one year of work) and other leave that company policy lets you turn into cash;
• separation pay, if the reason you left calls for it (for example job cuts, your job no longer being needed (redundancy), or closure not due to serious losses);
• retirement pay, if you qualify;
• a refund of excess tax withheld, if any; and
• other amounts due under your contract, company policy or Collective Bargaining Agreement.

Separation pay is usually not due when you resign on your own, unless your contract or company policy grants it.

Ask your employer for a breakdown. Also ask for your BIR Form 2316 (Certificate of Compensation and Tax Withheld), which your next employer will need.

The Certificate of Employment

A Certificate of Employment (COE) confirms that you worked for the employer. It usually states:

• the date you started and the date you left; and
• the kind of work you did (your position).

Put your request in writing (an email is fine) and keep a copy, so the 3-day period is clear. A COE is not a clearance or a recommendation, and an employer should not refuse it because you have not finished clearance (the company's exit process). Employers can use our Certificate of Employment template.

Resigning the Right Way

Under Article 300 of the Labor Code (formerly Article 285), an employee may resign without a serious reason (a just cause) by giving the employer written notice at least one month in advance. The employer may agree to a shorter period. You can resign immediately, without notice, for causes such as serious insult, inhuman treatment, or a crime committed against you or your family by the employer.

Use our Resignation Letter template. Keep a copy signed as received, or send it by email.

Most companies have a clearance process for returning equipment and settling accounts. Do it promptly, since it helps the release of your final pay.

If the Employer Does Not Pay

1. Follow up in writing and ask for the breakdown and release date.
2. If nothing happens, file a request for assistance under DOLE's Single Entry Approach (SEnA), a free 30-day process where DOLE helps you and the employer settle (conciliation). Many final pay disputes end there.
3. If it is not settled, the case is sent to the DOLE regional office or the NLRC (National Labor Relations Commission).

Claims for unpaid money under the Labor Code must be filed within three years from when the money was due. See labor complaints.