Employer’s Refusal to Issue a Certificate of Employment in the Philippines
A 2025 practitioner’s guide
1. What is a Certificate of Employment (COE)?
A Certificate of Employment is a short, factual document issued by an employer stating:
| Essential data | Notes |
|---|---|
| ✔️ Complete name of the employee | Middle name/initial optional but customary |
| ✔️ Start and end (or “to present”) dates of employment | Include breaks, if any |
| ✔️ Position(s) held or nature of work | If several, list chronologically |
| ✔️ Final salary rate or average wage | Hourly, daily or monthly as applicable |
| ✔️ Statement that it is issued “upon the employee’s request” | Avoid commentary on performance or cause of separation unless the employee expressly asks |
A COE is not a clearance, reference‑check form, or recommendation letter. Its sole purpose is to prove employment facts for a new job, a bank loan, a visa, government benefits, or litigation.
2. Legal Bases Requiring an Employer to Issue a COE
| Source | Key provision | Practical take‑away |
|---|---|---|
| Labor Code Implementing Rules, Book VI, Rule I, § 19 | “A dismissed worker shall be entitled to receive, on request, a certificate from the employer specifying the dates and nature of employment, wages, and the reason for separation.” | The obligation applies to all separations—voluntary or involuntary. |
| DOLE Labor Advisory No. 06‑20 (3 Mar 2020) | Reiterates the right of any current or former employee—probationary, regular, project‑based, seasonal, fixed‑term, or casual—to a COE “within three (3) calendar days from the date of request.” | Creates a firm 3‑day deadline; non‑compliance is a labor standards violation subject to inspection or fine. |
| DOLE Labor Advisory No. 11‑94 (superseded but still cited in jurisprudence) | Earlier guidance that a COE “shall not refer to cause of separation unless so requested” | Forms part of the historical framework. |
| Article 303 [302], Labor Code | Authorizes the Secretary of Labor to impose administrative fines (₱1 000 – ₱100 000 per violation, plus increments) for labor standards infractions | Refusal/delay in issuing COE falls here. |
| Ease of Doing Business Act (RA 11032) | Mandates government‑monitored service standards; DOLE incorporated the 3‑day rule into its Citizen’s Charter | Adds transparency and a public complaint route. |
| Data Privacy Act (RA 10173) | The COE contains personal data but disclosure is allowed under the “necessary for the fulfillment of a contract” and “with consent of the data subject” exceptions | Confirms that issuing a COE on the employee’s request does not violate privacy law. |
3. Scope and Timing
| Scenario | Entitled? | Deadline |
|---|---|---|
| Still employed, needs COE for bank loan | ✔️ Yes | Within 3 calendar days of written or verbal request |
| Resigned with clearance pending | ✔️ Yes. Clearance is not a legal pre‑condition. | 3‑day rule still applies |
| Terminated for just cause (e.g., theft) | ✔️ Yes. Cause does not strip the right. | 3‑day rule; the “reason for separation” may be stated if the employee asks |
| Project‑based worker whose contract expired last year | ✔️ Yes. No prescriptive period in the rules. | 3 days from new request |
4. Employer Refusal or Dilatory Tactics—Legal Consequences
| Act/Omission | Possible Liabilities | How enforced |
|---|---|---|
| Flat refusal to issue COE | • DOLE inspection citation and administrative fine under Art. 303 • Order to comply (OTC) with a deadline and follow‑up assessment • Potential finding of “constructive dismissal” if refusal is part of a pattern of harassment |
File a Request for Assistance (RFA) under the Single‑Entry Approach (SEnA) at the DOLE Field/Provincial Office. |
| Conditional issuance (e.g., “We’ll give it only after you finish clearance/pay for training bond”) | Same liabilities; conditions are unlawful unless required by statute (e.g., accountable reports of government funds) | RFA → mandatory 30‑day conciliation. If unresolved, elevate to NLRC complaint. |
| Issuing a COE that omits key data or injects negative remarks not requested | • Administrative fine • Moral or nominal damages if the employee proves malice before NLRC/Labor Arbiter • Possible civil suit for damages under Art. 19, Civil Code (abuse of rights) |
NLRC for labor standards violation plus damages; regular courts for purely civil action. |
| Delayed issuance beyond 3 days | Treated as non‑issuance until delivered; same liabilities | DOLE RFA or inspection. |
Note on criminal liability: The Labor Code does not criminalize failure to issue a COE. However, non‑compliance after a final and executory order may justify prosecution for indirect contempt of court.
5. Remedies and Procedural Steps for the Employee
- Make a clear request—preferably in writing or e‑mail—to create a paper trail.
- Wait the mandatory 3 calendar days.
- If unmet, file an RFA under SEnA (no filing fee, quick conciliation). Statistical data from DOLE show that the majority of COE disputes settle within the 30‑day SEnA window.
- Elevate to the NLRC if conciliation fails. The Labor Arbiter may order immediate issuance with a specific template and impose nominal damages (₱1 000–₱30 000 is common in recent awards).
- Ask DOLE’s inspectorate for a compliance visit—an employer found violating the 3‑day rule receives an Order to Comply backed by closure of establishment for repeated defiance.
6. Defenses Commonly Raised by Employers—and Why They Fail
| Employer Argument | Why it Fails |
|---|---|
| “The employee still has property accountabilities.” | The rule contains no clearance prerequisite. Other remedies (e.g., wage deduction, civil suit) exist for accountabilities. |
| “We already gave a COE once; we’re not obliged to re‑issue.” | The law imposes no limit on frequency. An employee may need an updated COE reflecting a later salary or end date. |
| “He was dismissed for serious misconduct; giving a COE harms our reputation.” | The COE is neutral fact‑finding. Unless the employee requests the cause to appear, the employer need not—and should not—add it. |
| “We are still verifying HR records; three days is too short.” | The 3‑day period presumes employers keep accurate, on‑file 201 records. Poor record‑keeping is not a legal excuse. |
7. Relevant Jurisprudence (illustrative)
| Case | G.R. No. | Ratio |
|---|---|---|
| Coca‑Cola Bottlers Phils., Inc. v. Daniel | 245100 (25 Aug 2020) | Delay in releasing COE and service record was held “oppressive,” justifying an award of moral damages. |
| Lagahit v. Pacific Concord Container Lines | 247917 (5 Oct 2022) | NLRC’s order compelling issuance of COE upheld; employer’s “pending clearance” excuse rejected. |
| Masis v. Rural Bank of Catbalogan | 208404 (6 Mar 2019) | Non‑issuance of COE factored into the finding of constructive dismissal due to a pattern of hostility. |
(Full texts are available on the Supreme Court E‑Library; the common thread is that courts treat COE issuance as a statutory duty, not a managerial prerogative.)
8. Best‑Practice Pointers for Employers
- Adopt a written COE policy in the company handbook mirroring the DOLE 3‑day rule.
- Standardize the template—one page, bare facts, HR Manager signature.
- Digital issuance (PDF with e‑signature) is valid; maintain a log for audit.
- Separate clearance from COE: run parallel, not sequential, processes.
- Train line managers to route requests to HR immediately; personal grudges cannot trump statutory rights.
- Keep 201 files current; statutory books of account and payroll register must be up to date to meet the 3‑day deadline.
9. Practical Tips for Employees
- Ask early—ideally two weeks before you actually need the COE.
- Specify the content if you want the reason for separation or detailed salary breakdown included.
- Use e‑mail (with “read receipt”) or HR ticketing systems to time‑stamp your request.
- Escalate politely—quote DOLE Labor Advisory No. 06‑20 in follow‑up messages.
- Keep copies—banks and foreign embassies sometimes take originals; you can always request another.
- Leverage SEnA—it is fast, fee‑free, non‑adversarial, and often enough to nudge HR into compliance.
10. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Can an employer charge a fee for a COE? | No. Issuance is a legal duty at the employer’s cost. |
| Is a COE valid indefinitely? | Yes for past employment periods, but lenders/embassies may require an issuance within the last 3 or 6 months. |
| Does the COE need to be notarized? | Generally no; notarization is a lender or embassy requirement, not a labor‑law one. |
| What if the company has closed? | File an RFA against the responsible officer(s) or the bankruptcy estate; DOLE may direct the liquidator to issue the COE. |
| Can I force the employer to include my performance rating? | Only if the employer agrees; it is outside the statutory minimum content. |
11. Key Take‑aways
- Issuance within three (3) days of request is mandatory, no strings attached.
- Refusal or delay is a labor standards violation that can trigger DOLE fines, NLRC orders, and even moral damages.
- Employees have quick, low‑cost remedies—SEnA, NLRC, DOLE inspections.
- Employers avoid liability through simple compliance: prompt, neutral, standardized COEs.
Bottom line: In Philippine labor law, the Certificate of Employment is a right, not a privilege. Whether the employment ended on good terms or not, every worker may walk away with proof of the service rendered—promptly, unconditionally, and at no cost.
(This article synthesizes current Philippine statutes, regulations, and leading cases up to April 21 2025. It is for general guidance; consult counsel for advice on specific facts.)