Dear Attorney,

I hope this message finds you well. I have a question regarding the release of final pay in the Philippines. Could you advise on how many days it should take for an employer to release an employee's final pay after resignation or termination? I want to make sure my rights are upheld and that the law is followed in this regard.

Sincerely,
Concerned Employee

Insights

In the Philippines, the release of an employee’s final pay after resignation or termination is guided by both statutory laws and company policies. While no specific provision under the Labor Code mandates an exact number of days for releasing the final pay, the Department of Labor and Employment (DOLE) has provided guidelines that suggest final pay should be released within thirty (30) days from the date of separation from employment. This period covers various payments such as earned salaries, pro-rated 13th month pay, unused leave credits, and any other compensations due to the employee.

It is important for both employers and employees to observe the fair and timely release of final pay. Failure to do so may expose the employer to legal consequences such as complaints for money claims before DOLE or the National Labor Relations Commission (NLRC).

In practice, many companies include final pay release timelines in their employment contracts or company handbooks, which may stipulate shorter or specific periods. Regardless of internal policies, however, DOLE’s 30-day guideline remains a standard benchmark for what is considered reasonable.

If an employer delays the release of final pay beyond the 30-day period, the employee may file a complaint with DOLE or seek legal assistance to pursue their claims. Furthermore, final pay is considered a money claim, meaning employees can request compensation for the amount owed in case of non-payment.