Letter to Attorney

Dear Attorney,

I hope this message finds you well. I am writing to seek your guidance on several concerns regarding my impending resignation. After serving my company for 15 years, I am set to resign at the end of December.

Final Pay Withholding Policy:
I was informed by our HR manager that my salary for December and my thirteenth-month pay would be withheld and released one month after I complete my clearance. My manager also mentioned that I could do an early clearance on December 23 so my last pay could be released on January 23. I would like to know whether this practice aligns with labor laws and whether I have the right to request earlier release.
Retention of Company-Issued Phone Number:
I have been using a company-issued phone number for years, which has become integral to my personal transactions such as banking and financial services. I intend to purchase the company-issued phone upon resignation but am unsure of the legal recourse if the company refuses to allow me to retain the phone number. Could you advise me on my rights and any legal avenues to retain this phone number?

Thank you in advance for your assistance. Your guidance on these matters would be greatly appreciated.

Sincerely,
A Concerned Employee

Legal Insights on Resignation, Final Pay, and Retention of a Company-Issued Phone Number

1. Final Pay Withholding: Legal Framework under Philippine Law

Under the Labor Code of the Philippines and related regulations, the release of final pay and benefits upon an employee's resignation is a critical matter governed by labor standards. Below are essential points related to this issue:

a. Timeliness of Final Pay Release

The Department of Labor and Employment (DOLE) issued Labor Advisory No. 6, Series of 2020, which emphasizes that final pay should be released within 30 days from the date of separation, unless a shorter period is stipulated in the company policy or employment contract. Final pay includes the following:

Unpaid salaries and wages
Cash equivalent of unused service incentive leaves
Pro-rated thirteenth-month pay
Other monetary benefits, if applicable

The company’s policy of releasing final pay a month after clearance aligns with DOLE’s 30-day guideline. However, if this timeline causes undue hardship, you may negotiate with your employer for earlier release, particularly since you are willing to complete the clearance process early.

b. Clearance as a Condition for Final Pay Release

While clearance is often required to process final pay, it must not be used as a means to unjustly delay salary release. If you complete clearance on December 23, the company’s proposal to release your final pay on January 23 appears reasonable and compliant with DOLE guidelines.

c. Thirteenth-Month Pay

Under Presidential Decree No. 851, thirteenth-month pay is a mandatory benefit, prorated for resigned employees. This pay must typically be given by December 24 of the calendar year but can be withheld and included in the final pay package if the resignation occurs near year-end.

Legal Remedies if Final Pay is Unduly Delayed

If the company unreasonably delays or withholds your final pay beyond the 30-day period, you may file a complaint with the DOLE Regional Office. This may lead to mediation or arbitration to address the matter.

2. Retention of Company-Issued Phone Number

The company-issued phone number, while used for personal purposes, remains the intellectual property of the employer unless explicitly transferred to you. The following considerations apply:

a. Ownership of Phone Numbers

Under Philippine law, mobile phone numbers are not owned by individuals or companies but are assigned by telecommunications providers. As such, your company likely has contractual rights to the number assigned to its account.

b. Transfer of Ownership: Negotiation is Key

While there is no statutory right to demand transfer of the phone number, you can explore these options:

Negotiate Transfer: Propose to the company to transfer ownership of the number to you as part of your clearance settlement. This can involve a formal agreement with the telecommunications provider.
Pay for the Number: Offer to shoulder any costs associated with transferring the account or number ownership.

c. Telecommunications Regulations

Under National Telecommunications Commission (NTC) Memorandum Circulars, mobile number portability (MNP) allows subscribers to retain their numbers when switching providers. However, MNP typically applies only to individual accounts, not corporate numbers.

d. If the Company Refuses

If the company declines your request, you may need to update your personal transactions linked to the phone number. Unfortunately, Philippine law does not mandate employers to relinquish company-issued phone numbers upon employee resignation.

3. Recommendations for Action

To address your concerns, here are practical steps to consider:

Regarding Final Pay:

Complete your clearance as early as possible to avoid delays.
Request a written acknowledgment from HR detailing the final pay breakdown and release date.
Negotiate for earlier payment, citing any urgent financial needs.

Regarding the Phone Number:

Engage in a professional discussion with your employer, emphasizing the importance of the number to your personal affairs.
Offer to reimburse any costs associated with transferring the number.
If refused, prepare for the transition by updating your records and notifying contacts.

4. Conclusion

Both concerns involve legal rights and practical negotiations. Philippine labor law protects your entitlement to timely final pay, while the issue of retaining the company-issued phone number is less straightforward and relies heavily on company policy and mutual agreement. Seeking legal counsel or mediation may help ensure a fair outcome in both matters.

I hope this guidance clarifies your concerns. Should you require further legal assistance, do not hesitate to consult an attorney for personalized advice.