How to File a Complaint Against an Employer for Delayed Final Pay

Dear Attorney,

I hope you can guide me on this matter. It has been 51 days since I left my job, but I still haven't received my final pay. I have followed up with the HR department multiple times, but they keep telling me that the processing is still ongoing. What can I do to ensure that I receive my final pay?

Sincerely,
A Concerned Employee

Insights

In the Philippines, the timely release of an employee’s final pay is a right protected by labor laws. The final pay typically includes the remaining salary, prorated 13th-month pay, unused service incentive leaves, and any other remaining benefits. The Department of Labor and Employment (DOLE) mandates that employers should release the final pay within 30 days after an employee’s resignation, termination, or end of the contract unless there is a valid reason for delay.

Given that it has been 51 days since your last day of employment, you have already exceeded the standard period during which final pay should have been released. Here are the steps you can take:

1. Send a Formal Demand Letter: Start by sending a formal demand letter to your employer, specifically to the HR department or the company’s management. In this letter, clearly state that you are requesting the immediate release of your final pay and any other due benefits. Mention that it has been beyond the acceptable period for releasing such payments. Provide a deadline by which you expect the payment to be made, usually within 7 to 10 days from the receipt of the letter.

2. File a Complaint with DOLE: If the employer fails to act on your formal demand, the next step is to file a complaint with the nearest DOLE office. You can file a complaint under the Labor Standards Enforcement Division. DOLE will then summon the employer and conduct a mediation conference to resolve the issue. In many cases, DOLE’s intervention leads to the prompt release of final pay.

3. Small Claims Court: Should the amount owed be considerable, and if DOLE’s mediation fails, you may opt to file a case in the Small Claims Court. The Small Claims Court provides a quicker resolution process for claims involving money disputes. The court proceedings are simplified and do not require legal representation.

4. Keep Documentation: Ensure you keep all documentation related to your employment, such as your resignation letter, pay slips, the demand letter, and any correspondence with your employer regarding the final pay. These will be crucial if you proceed to file a formal complaint or a case.

5. Legal Consultation: If you are unsure about the legal steps or if the situation becomes complex, consulting a labor lawyer can provide you with more tailored advice. They can help you assess the merits of your case and provide additional legal avenues for recourse.

It’s important to know that as an employee, you have rights, and the law protects these rights. Employers are obliged to fulfill their financial obligations to you promptly. If they fail to do so, the legal system offers mechanisms to enforce compliance.

By following these steps, you should be able to resolve the issue and receive the compensation you are owed.