What can I do if my final pay has not been released a year after resignation?

When an employee resigns from a company, they are legally entitled to receive their final pay, which typically includes any unpaid salaries, unused leave credits, and other benefits. In the Philippines, the Labor Code mandates that employers settle these dues promptly. If an employer fails to release the final pay within a reasonable period, the employee has several legal remedies to pursue.

Demand Letter: The first step in recovering unpaid final pay is to send a formal demand letter to the employer. This letter should detail the amount owed, the components of the final pay, and a request for immediate payment. It is advisable to keep records of all communications.
Filing a Complaint with the DOLE: If the employer does not respond to the demand letter or refuses to settle the amount, the employee may file a complaint with the Department of Labor and Employment (DOLE). The DOLE can mediate between the employer and the employee, and in many cases, this leads to a resolution without the need for litigation.
Small Claims Court: Should the DOLE mediation fail, the employee may opt to file a case in the Small Claims Court. This court handles cases involving monetary claims, and the process is designed to be simple, fast, and does not require legal representation. The employee must present evidence of the unpaid final pay and any attempts made to recover it.
Civil Action: If the amount involved is substantial or if the situation requires it, the employee may consider filing a civil action for the recovery of the unpaid wages. This process can be more complex and may require the assistance of a lawyer.
Other Remedies: In certain cases, the employee may also consider filing for constructive dismissal if the non-payment of final pay is part of a larger pattern of abusive behavior by the employer. However, this route should be taken cautiously and with legal advice.

Employees must act within the prescribed time limits to avoid the prescription of their claims. It is also essential to document all interactions with the employer, as this will strengthen the case if legal action becomes necessary.

Ultimately, the law protects employees' rights to their earnings, and there are multiple avenues to seek redress in cases of unpaid final pay.