DOLE to employers: Release

worker’s last pay in 30 days

TAGBILARAN CITY, Bohol, Feb 7 (PIA)—Do you know that the employer is now forced to release the final pay of an employee within 30 days from the date of separation or termination of employment?

Through the Department of Labor and Employment (DOLE) Labor Advisory No. 6, series of 2020, the government has issued the guidelines in the payment of the final pay as well as the issuance of yet another contentious document which employers seldom use to hostage the claims of their former workers.

With the labor advisory on the release of the final pay is the policy on the issuance of Certificate of Employment of an employee, so the worker can reckon every benefit due him while in service.

According to DOLE Secretary Silvestre Bello III, the advisory is based on Articles 4, 103,116 and 118 of the Labor Code of the Philippines as amended, and section 10 Rule XIV, Book V of the Omnibus Implementing Rules and Regulations of the Labor Code.

To Secretary Bello, the advisory is set to effectively harmonize the management prerogative of the employer and the right of the employees.    

The DOLE said the final pay, which means unpaid earned salary of the employee, or any cash conversion of the unused Service Incentive Leave, pursuant to Article 95 of the Labor Code, shall be released within 30 days from the date of separation or termination of employment.

The Labor advisory however categorizes the release, which can also be based on a more favorable company policy, individual or collective bargaining agreement.

Also, the DOLE said those employees may still have to get their pro-rated 13^th month pay as per Presidential Decree 851, which can be computed as 1/12^th of the total basic salary earned by the employee within the calendar year.

Separation pay, pursuant to Articles 298-299 of the Labor Code as renumbered, or pursuant to existing and effective company policy, or based on the individual or collective agreement, when applicable, must also be released within the period specified by the order. 

Other than those, the retirement pay, pursuant to Articles 302 of the Labor Code, when applicable, forms part of the final pay, as well as excess collection of the withheld income tax can form part of the pay.

As to DOLE, final pay also includes other types of compensations as stipulated in the individual or collective bargaining agreement as cash bonds or any deposits due for return to the employee, if any, must be accordingly released.

And since most of these benefits can be reckoned on one’s employment record, the DOLE also ruled that upon request by the employee, an employer shall issue a certificate of employment within 3 days.

Failure to do so for the employer, DOLE through the advisory said, any issue or claim dispute arising out of, or relating to the payment of the final pay, or the issuance of Certificate of Employment, shall be filed before the nearest DOLE Regional, provincial or Field Office which has jurisdiction over the workplace.

This is for conciliation or actions subject to DOLE’s existing enforcement mechanisms. (rahchiu/PIA-7/Bohol)