Dear Attorney,
I am seeking advice regarding an issue with my employer and the processing of my final pay. Recently, I was forced to resign by my agency because the production department no longer wanted to accept me, citing my absences due to sickness and hospitalization. I had a total of 20 days of absence this year, for which I provided proper documentation. Given this situation, I decided to submit my resignation as I no longer felt welcome at work.
I cleared my account with the company on August 22. I was informed that I would receive my last pay and 13th-month pay by November 22, but they said the processing could be expedited by two weeks. They also mentioned that my 13th-month pay would be processed on September 17, and both my final pay and 13th-month pay would be released through an e-wallet service.
I am concerned about whether this timeline is compliant with labor laws. Is it reasonable for them to take this long to process my final pay and 13th-month pay, or should I expect it sooner? I would appreciate your guidance on this matter.
Sincerely,
A Concerned Employee
Insights:
In the Philippines, the Labor Code provides clear guidance on resignation, final pay, and the 13th-month pay. When an employee resigns, the employer is obligated to process the employee’s final pay within a reasonable time frame. The final pay typically includes unpaid salary, unused leave credits, and other benefits owed. There is no specific rule under the law about the exact number of days, but the general practice is to release the final pay within 30 days of clearance. If the timeline exceeds this period without valid reason, it may constitute undue delay.
As for the 13th-month pay, Presidential Decree No. 851 requires employers to give this benefit to all rank-and-file employees who have worked for at least one month during the calendar year. This pay must be released on or before December 24 of each year, although companies often choose to provide it earlier. In your case, the employer's decision to process the 13th-month pay on September 17 and set the release date for November may still comply with the law, as long as it’s disbursed before the end of the year. However, considering the delay in your final pay, it’s reasonable to inquire if these processes can be expedited.
You may contact the Department of Labor and Employment (DOLE) to seek further clarification or assistance in ensuring your employer adheres to the appropriate timeline. If your rights are violated, you may file a complaint for non-payment or delayed payment of wages and benefits. While the employer can reasonably take some time for administrative processing, excessive delays should be addressed, as timely payment is a legal and moral obligation.