Dear Attorney,

I submitted my resignation letter in March, but until now, I have not received my last salary or my 13th-month pay. I would like to know what legal actions I can take to claim these benefits and what are my rights under Philippine labor laws regarding this situation.

Sincerely,
A Concerned Resigning Employee

Insights

Under Philippine labor laws, every employee who resigns is entitled to receive their final pay, which includes any unpaid salaries, accrued leave credits, and mandatory benefits such as the 13th-month pay. The law provides clear guidelines for employers on how to handle final pay after an employee's resignation.

Final Pay Requirements: When an employee resigns, the employer is obligated to release the final pay within a reasonable period. Although there is no fixed timeline under the law, the Department of Labor and Employment (DOLE) advises that the release should be within 30 days from the date of resignation unless there are specific reasons for the delay, such as pending clearance processes or other administrative concerns.
13th-Month Pay: The 13th-month pay is a mandatory benefit provided by Presidential Decree No. 851. All rank-and-file employees who have worked for at least one month during the calendar year are entitled to this benefit. It should be calculated based on the proportion of the employee’s actual service rendered during the year. In your case, even though you resigned in March, you are still entitled to a prorated amount for the months you worked.
Legal Remedies: If your employer refuses to release your last pay and 13th-month pay, you have the option to file a complaint with the DOLE. The DOLE provides a venue for employees to claim their unpaid wages and other benefits without the need to go through lengthy court proceedings. You may file a complaint through DOLE’s Single Entry Approach (SEnA), which encourages both parties to settle disputes through mediation. Should this fail, you may pursue further legal action by filing a formal labor case.
Employer Penalties: Failure to pay final wages and 13th-month pay can result in penalties for the employer. Under the Labor Code of the Philippines, non-payment of wages is considered a violation, and employers could be subjected to administrative fines, damages, or even criminal liability for willful non-compliance.
Documentation: It’s essential that you have all the necessary documents ready when pursuing a claim, such as a copy of your resignation letter, proof of employment, and any communication or correspondence with your employer regarding your unpaid wages and benefits.

By law, you are entitled to your final pay and prorated 13th-month pay. Your best course of action is to document your concerns in writing and formally raise the issue with your employer. If they continue to withhold payment, DOLE can assist you in recovering what is legally yours.