Dear Attorney,
I would like to seek your advice regarding a situation with my former employer. Recently, I was forced to resign from my job due to attendance issues, even though my absences were caused by illness and hospitalization. I had provided documentation to my employer, but they still did not accept me back to work. I submitted my resignation letter after realizing I could no longer continue working in the production department.
I completed the clearance process on August 22, and I was informed that my last pay and 13th-month pay would be processed on September 17, with a release date of November 22. However, the company stated that these payments might be expedited by two weeks. Additionally, I was told that my final pay would be disbursed via GCash.
I am concerned about the lengthy processing time for my final pay and 13th-month pay. Is this delay normal or legally justified? I want to ensure that my rights as an employee are being respected, and I am unsure if the timeline provided is in line with labor laws. Any guidance you could provide would be greatly appreciated.
Sincerely, [Concerned Worker]
Insights
In the Philippines, an employer is generally obligated to release an employee’s final pay within a reasonable time after resignation, termination, or completion of clearance. According to the Department of Labor and Employment (DOLE), final pay should typically be processed and released within 30 days from the date of clearance, unless otherwise stated in company policy or a collective bargaining agreement.
The final pay may include unpaid wages, unused service incentive leaves, pro-rated 13th-month pay, and other monetary benefits due to the employee. However, the actual release date can be influenced by internal company processes, particularly if there is a backlog or internal audit, which could explain the delay you are experiencing.
As for the 13th-month pay, the law mandates that employers must provide it on or before December 24 of each year, but companies often align its release with an employee’s final pay. Since your resignation and clearance took place earlier in the year, the company’s decision to process the 13th-month pay in September might be based on their payroll system or policy. However, delaying the release until November could be seen as a prolonged wait unless properly justified.
If you feel that the process is being unnecessarily delayed or if there are signs that your employer is failing to meet its obligations, you may file a complaint with the DOLE. They can investigate whether the company is complying with the Labor Code, especially regarding the timely release of final pay and 13th-month pay.
As for the payment via GCash, this is a permissible method as long as you are informed and agree to it, since the law does not mandate a specific payment mode, provided it is accessible and convenient for the employee.
In summary, while the timeline you described seems longer than usual, there may be valid reasons. If you suspect any violations, particularly regarding the final pay timeline, seeking assistance from DOLE is advisable to ensure your rights are protected.