Dear Attorney,
I would like to ask for your guidance regarding my situation. It has been over a month since I left my previous employer, but I have yet to receive my 13th-month pay and backpay. What legal steps can I take to claim what is rightfully mine under Philippine labor laws? Thank you.
Sincerely,
A Concerned Employee
Insights
The 13th-month pay is a mandatory benefit under Philippine law, specifically provided by Presidential Decree No. 851. It is equivalent to one-twelfth (1/12) of an employee's total basic salary within a calendar year and must be paid by the employer on or before December 24 of each year. All rank-and-file employees, regardless of their position, status, or method of payment, are entitled to this benefit as long as they have worked for at least one month during the calendar year.
Failure of an employer to release the 13th-month pay constitutes a violation of labor laws. Employees can file a complaint with the Department of Labor and Employment (DOLE) for non-compliance. DOLE may then intervene and require the employer to pay the amount due, along with any applicable penalties.
Backpay, also known as final pay, is the total amount owed to an employee after separation from employment. It typically includes unpaid salaries, prorated 13th-month pay, unused service incentive leave credits, and other lawful deductions. Philippine labor law mandates that backpay should be released within a reasonable time after the employee’s separation from the company. The Labor Code of the Philippines, under Article 283, provides guidelines for final pay after resignation or termination.
In cases where an employer fails to provide the backpay, the employee can file a complaint with DOLE or, if necessary, pursue legal action. DOLE's mediation process is typically the first step in attempting to resolve disputes regarding backpay or 13th-month pay.
Filing a labor complaint can also be done online through DOLE’s official website. If mediation fails, employees can bring the case to the National Labor Relations Commission (NLRC) for further adjudication.