Employers in the Philippines must issue a terminated employee’s final pay and employment certificate within prescribed time periods, under guidelines published by the Department of Labor and Employment. Under the old rules, no time periods applied.

Highlights

Timing of final pay. Employers must give final pay — also termed back pay or last pay — to a former employee within 30 days of termination or separation, or any earlier period required by company policy or collective agreement. Final pay comprises unpaid salary; prorated 13th month of pay; unused service incentive leave; cash equivalent for unused vacation and other leave entitlements; other types of pay or compensation included in collective agreements or required by company policy; and retirement pay.

Timing of employment certificate. Employers must issue the employment certificate within three days of an employee’s request. The certificate sets out the employee’s dates of employment and termination, and the type of work done. Employees who aren’t terminated also may ask for a certificate.

Remedies. The local labor office for conciliation and enforcement will handle claims under these guidelines.

Related resource

• Labor Advisory No. 06-20, Guidelines on payment of final pay and issuance of certificate of employment (Department of Labor and Employment, 31 Jan 2020)