Below is a comprehensive discussion of the legal and practical considerations surrounding the issuance of a Certificate of Employment (COE) in the Philippines, particularly answering the question: “Can an employer refuse a Certificate of Employment request?” and covering everything an employee or employer should know.

1. What is a Certificate of Employment (COE)?

A Certificate of Employment (COE) is a document issued by an employer to an employee upon the latter’s separation from the company (or during employment, if needed) that typically contains:

The employee’s full name
The position(s) held
The dates of employment (date hired and date of separation, if applicable)
A brief statement of the employee’s work performance or conduct (in some cases)

The COE serves as a form of proof or record of one’s employment history. Prospective employers often require this document during the hiring process.

2. Philippine Legal Basis

2.1 Labor Advisory No. 06, Series of 2020

The most direct and relevant policy on COEs is the Department of Labor and Employment (DOLE) Labor Advisory No. 06, Series of 2020, also known as the “Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment,” issued on January 31, 2020. It sets forth:

Issuance of COE Upon Request
Employers are mandated to issue a Certificate of Employment upon request by a current or former employee.
Timeframe for Issuance
The COE must be issued within three (3) days from the date of the request.
Information Generally Included
- Full name of the employee
- Position or job title held
- Start and end date of employment
- A brief statement of the employee’s job description (optional or as relevant)

2.2 Labor Code and General Labor Policies

While the Labor Code of the Philippines itself does not explicitly provide a separate provision for “Certificate of Employment,” various issuances and labor advisories from DOLE over the years fill this gap. They consistently underscore the employee’s right to request and receive a COE.

Furthermore, the Constitutional policy to afford full protection to labor and the doctrine of social justice in Philippine labor laws support the principle that workers should not be unreasonably denied documentation of their prior employment.

3. Is an Employer Legally Allowed to Refuse Issuing a COE?

3.1 General Rule: Employers Cannot Refuse

Under Labor Advisory No. 06, Series of 2020, an employer cannot simply refuse to issue a COE when an employee or former employee requests it. The directive is unequivocal:

“A Certificate of Employment shall be issued by the employer upon request by the employee…”

3.2 Limited Situations or Misconceptions

Pending Clearance or Accountabilities
Some employers mistakenly believe they can withhold a COE until the employee settles all accountabilities or secures a formal clearance. However, the DOLE guidelines do not make the COE issuance conditional on the completion of clearance procedures. While final pay or other benefits may be subject to a clearance process, the COE is considered separate and should be issued upon request, regardless of any pending obligations.
Employee Discipline or Negative Record
Even if an employee has disciplinary issues or was terminated for cause, the employer is still required to issue a COE. Employers have the option to reflect truthful statements about the employee’s position, dates of engagement, and a neutral or brief mention of the employee’s reason for separation. However, refusing to issue any COE at all is generally not permissible.
Confidential Company Information
The COE does not require disclosure of any proprietary or highly confidential company information. It is a factual statement focusing on the employee’s service record, so concerns about sharing confidential data do not justify refusal.

4. Content and Format of the COE

While there is no single rigid format prescribed by law, the DOLE guidelines and standard HR practice generally include:

Employer’s Letterhead – This confirms authenticity and the identity of the issuing entity.
Employee’s Full Name – Must match government-issued IDs or official records.
Position or Job Title – Indicating the last position or positions held.
Inclusive Dates of Employment – Both start and end date (or “present” if still employed).
Reference to Good Standing or Reason for Separation (Optional) – Some employers opt to include a statement of good standing or reason for employment termination/resignation, but this is not strictly required.
Signature over Printed Name of Authorized Signatory – Usually an HR Manager, Personnel Officer, or other authorized representative.

The law remains flexible, so employers may add other pertinent employment details, but must include the basic information above.

5. Consequences of Refusal or Delay in Issuing a COE

5.1 Filing a Complaint with the Department of Labor and Employment (DOLE)

If an employer unreasonably refuses to provide or delays the issuance of a COE beyond the stipulated three-day timeframe, the employee may:

Approach the Regional or Field Office of DOLE – File a request for assistance (RFA) under the Single Entry Approach (SEnA).
Elevate the Complaint – If the employer continues to refuse or fails to comply, the matter can escalate into a labor complaint.

5.2 Possible Penalties or Sanctions

While the law does not specify a separate, dedicated penalty for failing to issue a COE, DOLE can compel compliance or impose sanctions under broader labor law provisions related to non-compliance with advisories. These can include:

Monetary fines (where applicable under DOLE’s enforcement powers).
Issuance of compliance orders.
Inclusion in DOLE watchlist for repeated or willful violations.

The reputational damage to an employer refusing to follow a clear mandate can also be significant.

6. Practical Tips for Employers and Employees

6.1 For Employers

Establish a Standard Template – Prepare a standard COE format to streamline issuance.
Train HR Staff – Ensure HR personnel understand that COE issuance is mandatory upon request.
Respect the 3-Day Period – Develop internal processes to issue the COE on time.
Clarify Content – Keep details factual; omit irrelevant or potentially defamatory remarks.

6.2 For Employees

Submit a Written Request – Even if verbally requested, provide a formal written or email request (date-stamped) for clarity.
Follow Up Politely – Keep records of communications. If the employer delays beyond three days, remind them of the DOLE advisory.
Escalate if Needed – If an employer refuses or repeatedly delays, consider seeking DOLE’s intervention through the Single Entry Approach (SEnA).

7. Frequently Asked Questions (FAQs)

1. Can an employer say “No” if I still have unpaid debts or unreturned company property?
No. The COE is independent of the clearance process. While final pay or release of other documents may be tied to clearance, the issuance of a COE cannot be withheld due to unresolved liabilities or accountabilities.

2. My former employer insists they do not provide COEs. Is that legal?
No. DOLE explicitly requires employers to issue a COE upon request. You can remind them of Labor Advisory No. 06, Series of 2020 or seek assistance from DOLE.

3. Do I need to wait until my last day before requesting a COE?
Not necessarily. An employee can request a COE at any time, including during employment (for example, if needed for visa applications or loan applications).

4. Can the COE state the reason for my termination?
Yes, it can. The employer must remain factual. However, even if the reason was dismissal for cause, the employer still cannot refuse to issue a COE. They may note “terminated for just cause” or a similar factual statement, but no extraneous commentary or defamatory statements should be included.

5. What if the COE contains incorrect details?
If the COE is inaccurate (e.g., incorrect dates or positions), the employee should request correction. Employers should promptly correct any errors, as providing inaccurate employment records can have legal repercussions and create additional labor conflicts.

8. Summary and Key Takeaways

Mandatory Issuance: Philippine labor regulations (specifically DOLE Labor Advisory No. 06, Series of 2020) mandate that an employer must issue a COE upon request from an employee or former employee.
Deadline: The law sets a firm three-day timeframe for issuance.
No Withholding: Employers cannot refuse to issue the COE on grounds of pending clearance, alleged misconduct, or unresolved accountabilities.
Consequences of Refusal: An employer who refuses or delays issuance may be reported to DOLE. Administrative sanctions and potential legal consequences can follow.
Practical Considerations: Both parties—employer and employee—should maintain a professional, factual approach in requesting and issuing the COE. Employers benefit from a streamlined process; employees benefit from receiving accurate documentation promptly.

In conclusion, an employer in the Philippines cannot lawfully refuse to provide a Certificate of Employment when requested. Should an employer fail or refuse to comply, employees have the right to seek assistance from the Department of Labor and Employment to enforce this entitlement.