Final Pay Out in 30 Days, COE Out in 3 Days

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.

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 component  (ex. billing cycle of post paid mobile, in-house credit facilities for retail companies) can be factored. 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
 

1. Abandon work
   • Who just stopped reporting for work without advice or notice
   • Who have a pending case but resigned immediately
2. Resigns but did not render 30 days.

 
At these situations. employer is at the disadvantaged because the civil liability is not a good deterrent. Employees do not mind the risk and 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 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 when employee is not cooperating in the clearance process.
 
 
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?

Sonnie

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.