Simplified query: How can an employee report a company for not paying backpay in the Philippines?

In the Philippines, employees have the right to receive their due wages, including backpay, under the Labor Code. If an employer fails to pay the agreed-upon wages, employees can take specific legal steps to address this issue. Here’s a detailed guide on how to proceed if an employer does not pay backpay.

Understanding Backpay

Backpay generally refers to the wages that an employee is entitled to receive from the employer for previous work done but not yet compensated. This can include unpaid salaries, overtime, bonuses, and other benefits.

Legal Steps to Claim Backpay

Internal Resolution: The first step is often to attempt to resolve the issue internally. The employee should formally raise the issue with the employer through a written complaint to the HR department or directly to the employer.
Department of Labor and Employment (DOLE): If internal resolution fails, the next step is to file a complaint with the Department of Labor and Employment. DOLE can assist in resolving labor disputes through their mediation and conciliation services.
- Filing a Complaint: The complaint should include all relevant details such as the amount of backpay owed, the period it covers, and any communication with the employer regarding the issue.
- DOLE Mediation: DOLE offers mediation services to resolve disputes without going to court. This process is faster and can result in a mutually agreeable solution.
National Labor Relations Commission (NLRC): If mediation does not resolve the issue, the employee can escalate the matter to the NLRC. Filing a claim with the NLRC allows for a formal hearing process, where both parties present their case, and a legally binding resolution is decided.

Necessary Documentation

Employment Contract: Demonstrates the terms of employment and pay agreed upon.
Payslips: Show the wages received and the periods they cover.
Time Records: Support claims for unpaid hours or overtime.
Correspondence: Any emails or letters exchanged with the employer about the issue.

Legal Considerations

Statute of Limitations: Claims for unpaid wages must be filed within three years from the date the wage was due.
Retaliation: The Labor Code protects employees from retaliation for asserting their rights, including filing a complaint for unpaid wages.

Conclusion

Employees in the Philippines have the right to receive their full wages, and there are robust legal avenues to pursue claims against employers who fail to pay backpay. By following these steps and seeking appropriate legal guidance, employees can ensure their rights are protected and upheld.