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Businesses across the country should release the final pay of separated or terminated employees on time as stated by the law, an aspiring party-list group said on Wednesday, April 2, 2025. INQUIRER.net stock image MANILA, Philippines — Businesses across the country should release on time the final pay of separated or terminated employees in compliance with labor payment rules, an aspiring party-list group said on Wednesday.
In a statement, the Trabaho Party list said that businesses should comply with the law on the timely release of employees’ final pay, as stated under the Department of Labor and Employment (DOLE) advisory in 2020. According to the DOLE Labor Advisory No. 06, Series of 2020, the computation and payment of final pay should be released, as much as possible, within 30 days after the employee officially leaves the company.
“Under Philippine labor law, employers are mandated to release the final pay within 30 days after the employee’s last day of work. This pay should include all outstanding salaries, unused leave credits, 13th-month pay, and other benefits entitled to the worker,” Trabaho party-list spokesperson and lawyer Mitchell-David Espiritu said. “Failure to comply not only deprives workers of their hard-earned money but can also expose companies to legal repercussions,” he added.
It is important to give these final salaries on time, Espiritu said, as failure to do so would have a detrimental effect on the finances of a worker. “Delayed final pay can lead to financial distress for employees, especially those who rely on their final paycheck to cover immediate expenses. Furthermore, it negatively impacts the broader workforce by creating a culture of non-compliance that undermines workers’ rights,” he noted.
In February 2020, the DOLE in Central Visayas already reminded companies to comply with the regulations regarding the release of final pay of terminated or separated workers. Then DOLE Central Visayas regional director Salome Siaton said that separated workers, regardless of the cause of their termination, should be given their final pay within 30 days from the date of separation or termination of employment. “We repeatedly heard workers saying that their former companies would only release their last pay after two to three months.
Some would even last longer than three months ever after workers have been already issued with company clearance,” Siaton said in an emailed statement. “Once and for all, we have now an advisory that will serve as a guide for all employers as well as for all workers insofar as their rights are concerned. Klaro na ‘yan.
(That’s very clear) Within 30 days from the date of the workers’ separation from employment, companies must also be able to release their last or final pay,” she added. READ: DOLE urges employers to release final pay of separated, terminated workers in 30 days According to the Trabaho party-list, the group called for better enforcement of labor laws, aside from the imposition of “stricter penalties for businesses that consistently fail to meet their obligations to workers.” “Employers should establish clear guidelines for the release of final pay, while employees should be proactive in seeking clarity about the settlement process and ensuring timely resolution,” Espiritu said.
Subscribe to our daily newsletter By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . “With the growing awareness around workers’ rights and the importance of adhering to labor laws, TRABAHO Partylist remains committed to championing the cause of Filipino workers, urging the public to support the timely and fair treatment of all employees in the workplace,” he added.
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