DOLE’s Labor Advisory 06 s. of 2020 mandate private companies to release the final pay of separated employees, whether resigned or terminated, in 30 days. In the same advisory, DOLE advised companies to release employees’ certificate of employment, 3 days after receiving the request.
Gaano katagal niyong nakukuha ang jnyo g certificate of employment? Ayon sa Labor Advisory No. 06, "The employer shall…
Posted by National Wages and Productivity Commission on Monday, February 3, 2020
Finally!
The Direct Manager and the Accounting and/or Payroll will no longer have an excuse to delay the process of the clearance and final pay of separated employees. Likewise, weaponizing the Certificate of Employment (COE) will be reduced if not eliminated.
Before this advisory. R/F employees who are expecting roughly P 3,000 to 6,000 worth of final pay will have to wait 60 to 90 days just to get their final pay. Employees, likewise, are being threatened not to be given COEs if they will AWOL or not agree to the extension of employment until a replacement is found.
These injustice are commonly experienced by R/F employees after they are resigned, terminated or contract is ended.
However
The timeline given by DOLE may be too tight for employees who have greater responsibilities. Those occupying positions of trust and confidence, or those whose accountabilities observe cycles and cut-offs. It may take 30 days before all accountabilities with monetary components (ex. billing cycle of post-paid mobile, in-house credit facilities for retail companies) can be factored in. A 45 to 60 days timeline is more realistic.
Likewise
Appropriate attention (and action) needs to be given to employees who left the company in bad faith. These employees are those who
In these situations. the employer have the right to withhold the financial equivalent of employees accountability
G.R. No. 202961 February 4, 2015
“The Civil Code provides that the employer is authorized to withhold wages for debts due:
Article 1706. Withholding of the wages, except for a debt due, shall not be made by the employer.
“Debt” in this case refers to any obligation due from the employee to the employer. It includes any accountability that the employee may have to the employer. There is no reason to limit its scope to uniforms and equipment, as petitioners would argue.”
But employer might be at the disadvantage because civil liability is not a good deterrent to some ex-employees who do not mind the risk. The corresponding consequence to them is bearable.
And…
Some HR professionals are expecting difficulty in the implementation of this advisory because it failed to factor in the processing of clearance. Could have been better, they said, ‘if 30 days will start after the completion of clearance’.
My take on this is for companies to conceptualize or adopt a policy that will ensure clearance, computation, and payout will be completed in 30 days.
It may also help if the policy can clarify when a clearance should be processed (during rendering or after separation) and by whom (concerned employee, hr, or accounting/payroll). What to do in situations when an employee is not cooperating in the clearance process. And the steps required by law to proceed deducting from the employee’s final pay the monetary equivalent of the uncleared accountabilities.
You can download your copy of LA 06 s.2020 at DOLE website.
What is your take in this advisory, do you think the 30 days timeline is doable?
Founder of LODI Inc. (Learning and Organization Development Institute, Inc.) and Co-Founder of Blogwatch. Mentor and Dad of 2 Gen Z Professionals.
Advocate of #HRinHR (Human Rights in Human Resources) and #DigitalCitizenship
Strategist for Talent, Culture & Content Development, and Cyber Wellness Initiatives
Keynoter and Facilitator of Workplace and Life Learning
Blogging since 2004.
Hi pwede po bang tumagal ng almost 6 months ang final pay sa call center?
dapat hindi
wala po ba akong magagawa kundi maghintay nlng sa kanila? Meron po ba silang nilalabag na batas? Salamat po.
1st reach out to them and get an update and/or seek clarification for the delay baka naman kasi may di ka pa nagawa sa clearance mo. If the response is not acceptable to you, go file a complaint at DOLE for non payment and violation of LA 09-2020
For the releasing of Certificate of Employment, I would like to confirm, does “terminated employee” includes AWOL employees? If not, does DOLE have guidelines on releasing of COE for AWOL employees? thank you!
AWOL is not a termination per se but abandonment of work. but to answer your Q, terminated employees are also entitled to COE, including abandonment of work.
Hello po. Question lng po may earned leaves from 2020 po ako tpos ginamit ko po siya this year then ngresign po ako nung feb 2021 nung nirelease po nila ang last pay ko di nila binayaran yung mga leaves ko plus binawas pa nila yung mga binayran nilang leaves ko ng 2021. tama po ba yun
bale binawas nila sa last pay ko yung amount nung mga leaves ko na gnmit
saan binawas sa salary mo or sa conversion ng leaves?
Medyo sintunado
bale may 15 days leave po na vl and sl na bngay sa akin after ko po maka two years na tenure ka sa company. this january po may available po ako na 15 days vl and sl ginamit ko po yung ibang sl and vl ko nung janaury and february ngresign po ako ng february. tpos po nung nagcompute po ng last pay binawas po ni company yung mga ginamit ko na leaves ksi prorated dw po. tama po bang ibawas nila skin un thank you po