Query: What is the process of getting back pay in the Philippines after separating from a company?

Back Pay Definition:
Back pay, or final pay, refers to the sum of all wages or monetary benefits due to an employee when their employment ends, either through resignation or termination. It typically includes:

Unpaid Salary: The compensation an employee has earned during their last few weeks of employment.
Prorated 13th Month Pay: The employee's share of the 13th-month pay based on the duration they worked in the year.
Leave Conversions: The cash equivalent of unused service incentive leaves and other types of leave.
Tax Refund: If excess tax was withheld from an employee’s salary, the surplus should be refunded.
Separation Pay: This is applicable if the employee qualifies under specific circumstances defined by the Labor Code【14†source】【15†source】.

Clearance Process:
To facilitate the processing of back pay, employees should follow company protocols, which typically involve:

Completing Clearance: This involves returning company assets and settling any liabilities.
Securing Clearance: Employees usually need to secure clearance from their manager, IT department, and other relevant departments【15†source】.

Timeframe for Back Pay Release:
According to the Department of Labor and Employment (DOLE), back pay should be released within 30 days from the last date of employment, unless a shorter time period is specified in company policy or an employment contract. This applies regardless of whether the employee resigned or was terminated【14†source】【17†source】【18†source】.

Deduction for SSS Sickness Claim:
If there are pending claims, such as SSS sickness claims, the employer may deduct relevant amounts from the back pay before releasing it. The employer must ensure that all mandatory contributions to government agencies, like SSS, Pag-IBIG, and PhilHealth, are up to date before releasing the final payment【14†source】.

Legal Advisory:
It is advisable for both employers and employees to understand their rights and obligations regarding back pay. Employers should establish clear processes for computing and releasing back pay, while employees should ensure they have completed necessary clearances and submitted required documents【17†source】.