Dear Attorney,

Greetings!

I am seeking your legal advice regarding the interplay between an affidavit of self-generated income and a certificate of employment. Specifically, I would like to understand whether a certificate of employment (COE) is still necessary if I already have an affidavit of self-generated income. Additionally, I wish to clarify the implications if the designation or position is included in the affidavit but not reflected in the COE. Your insights on this matter would be greatly appreciated.

Sincerely,
A Concerned Individual

Exploring the Legal Significance of a Certificate of Employment and Affidavit of Self-Generated Income

This legal article will delve into the concerns raised regarding the affidavit of self-generated income, its interplay with the certificate of employment (COE), and the issues surrounding the designation or position reflected in these documents.

1. Certificate of Employment (COE): Purpose and Legal Basis

A Certificate of Employment (COE) serves as a document that confirms an individual’s past or current employment relationship with an employer. In the Philippines, the issuance of a COE is governed by Article 285 of the Labor Code, as interpreted by Department of Labor and Employment (DOLE) regulations. The purpose of a COE is primarily to:

Verify Employment History: It provides proof that an employee worked for a specific employer within a specified period.
Outline the Nature of Work: It may include the position held and the general description of the employee’s responsibilities.
Support Applications: COEs are often required in applying for jobs, loans, or other financial transactions where employment verification is essential.

Legal Obligation to Issue a COE

The employer is obligated to issue a COE upon request of the employee, provided such request is made in good faith. According to DOLE’s Labor Advisory No. 06, Series of 2020, a COE must be issued immediately upon request and should include the following information:

Dates of employment
Position(s) held

Failure to comply with a legitimate request for a COE may result in penalties or labor complaints against the employer.

2. Affidavit of Self-Generated Income: Overview

An affidavit of self-generated income is a sworn document that declares an individual’s income from non-employment sources, such as freelancing, entrepreneurship, or other self-employment activities. It serves as evidence of financial capacity and is typically used in situations where proof of income is required, such as:

Loan applications
Visa applications
Compliance with tax requirements

Legal Requirements of an Affidavit

The affidavit must be:

Notarized: To give it the force of law.
Accurate: Contain truthful and verifiable statements regarding income and its sources.
Detailed: Include information on the type of work or business and estimated income.

Unlike a COE, an affidavit is a self-declared document and is not subject to verification by a third party unless corroborating evidence, such as bank statements or tax filings, is provided.

3. Interplay Between a COE and an Affidavit of Self-Generated Income

The necessity of a COE alongside an affidavit depends on the purpose for which the documents are being used. While both documents serve to prove income, they are not interchangeable:

COE as Proof of Employment: A COE is indispensable for verifying formal employment, particularly for employer-employee relationships.
Affidavit for Self-Employment or Supplemental Income: An affidavit is better suited for non-traditional or informal income sources.

In scenarios where employment and self-generated income overlap, both documents may complement each other to provide a comprehensive picture of an individual’s financial status.

4. Addressing the Designation or Position Discrepancy

A discrepancy in the designation or position reflected in the affidavit and COE can lead to complications, especially if these documents are used for employment verification or legal proceedings. The implications of such inconsistencies include:

Credibility Issues: Conflicting information may raise questions about the authenticity of the documents.
Legal Challenges: If used in judicial or administrative proceedings, discrepancies may weaken a party’s claims.

To avoid such complications:

Ensure Consistency: Align the details in both documents to reflect accurate and consistent information.
Clarify in the Affidavit: If the COE omits certain details, such as a designation, the affidavit may explicitly state and explain the same.

5. Applicability and Limitations

The validity and necessity of a COE alongside an affidavit depend on the following factors:

Purpose of the Documents: For loan applications, an affidavit may suffice; for employment verification, a COE is often mandatory.
Legal Context: Courts and agencies may require both documents for a more thorough examination of financial and employment status.
Employer’s Practices: Some employers may issue limited COEs that omit designations, leaving the affidavit as supplementary evidence.

6. Practical Steps for Compliance

For individuals facing such issues, the following steps are recommended:

Request a Comprehensive COE: Ensure that the COE reflects not only employment dates but also the designation and nature of work.
Draft a Detailed Affidavit: Clearly outline the scope of self-generated income and its sources, ensuring accuracy.
Provide Supporting Documents: Attach evidence such as tax returns, bank statements, or invoices to bolster the affidavit’s credibility.

7. Legal Recourse and Remedies

If an employer refuses to issue a COE or provides an incomplete one, the employee may:

File a complaint with DOLE for non-compliance with labor standards.
Seek assistance from legal professionals to enforce their right to a COE.

Conclusion

The affidavit of self-generated income and certificate of employment serve distinct yet potentially complementary roles in verifying financial and employment status. While the affidavit provides flexibility for non-traditional income, the COE remains crucial for verifying formal employment. Ensuring consistency between these documents and supporting their claims with corroborative evidence is key to avoiding legal and procedural hurdles.

For specific concerns or assistance, consulting a legal expert familiar with labor and income verification laws in the Philippines is essential.