Labor advisory urges employers to release back pay in 30 days

A LABOR advisory urges employers to release the final pay of their employees within 30 days from date of separation.

According to Department of Labor and Employment (Dole)-Central Luzon Director Ma. Zenaida Angara-Campita, with the issuance of Labor Advisory 6-20 or Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment, companies should follow the required period for the release of employees' last pay and certificate of employment.

"Here in Central Luzon, it is a common practice of employers to release the final pay of their employees 30 to 45 days after termination even after the employee has been cleared of his accountabilities. That is unfair on the part of the employee," Campita said.

She said that in 2019, the Regional Tripartite Industrial Peace Council of Central Luzon recommended to the National Tripartite Industrial Peace Council the issuance of a policy requiring employers to release the final claim of separated employees not more than 30 days after completion of clearance procedures.

"Dole-3 saw the need for this policy given the data from requests for assistance (RFAs) in our SEnA (Single Entry Approach) program. About 10 to 23 percent of all RFAs filed annually include issues on nonpayment of final pay," Campita said.

Final pay, last pay, or back pay refers to the sum of all the wages or monetary benefits due to the employee regardless of the cause of termination of employment.

Included in the labor advisory is the issuance of certificate of employment within three days upon the request of the employee.

"The advisory makes clearer the responsibility of the employers even after the last day of their employees," Campita said.


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