Query: When does the 30-day period for the release of final pay and Certificate of Employment (COE) start after an employee's resignation?

In the Philippine labor setting, the timing for the release of final pay and Certificate of Employment (COE) is a frequent topic of inquiry among employees. Understanding this timing is crucial for both employees and employers to ensure compliance with labor laws and regulations.

Legal Guidelines:

30-Day Period: According to the Department of Labor and Employment (DOLE), the final pay, often referred to as "back pay," should ideally be released within 30 days from the date of separation or resignation. However, this is not a strict deadline imposed by law but a guideline that serves as a best practice.
Start of the Counting Period: The counting of the 30 days generally begins the day after the employee's last day of work. This is based on the assumption that the employment relationship ends on the last working day.
Certificate of Employment (COE): Similarly, the COE, which documents the nature and duration of employment, should be issued promptly upon request, typically at the same time as the final pay or shortly after the employee's last working day.

Practical Application:

Calculation of Final Pay: The final pay includes all the wages due up to the last working day, plus other benefits like unused leave conversions, if applicable under company policy.
Delays and Disputes: Delays in the processing can occur due to final clearances, return of company properties, and completion of exit interviews. In cases where there is a dispute or claim against the employee (e.g., property not returned), the release might be delayed, which should be communicated clearly by the employer.
Employer Compliance: Employers are encouraged to streamline their processes to ensure that these payments and documents are prepared ahead of the employee's last day where possible.

Conclusion: While the 30-day guideline for the release of final pay and COE is not mandated by Philippine law, it is a standard practice expected by the DOLE. Employers should aim to meet this timeline to avoid potential complaints and ensure smooth transitions for departing employees. It is advisable for both parties to maintain open communication throughout the resignation process to clarify the timing and requirements for the release of final settlements and employment documents.