(MANILA BULLETIN)

Make sure the final pay of departing employees is released on time.

This was the appeal made by TRABAHO Party-list to businesses across the country, and it highlighted the importance of complying with the law to protect workers' rights.

Lawyer Mitchell-David Espiritu, spokesperson for TRABAHO Party-list, raised concerns over te reported delays in the issuance of final pay, a practice that remains common despite existing regulations set by the Department of Labor and Employment (DOLE). 

These regulations require companies to settle all financial obligations--including the final paycheck--within a specific timeframe following the resignation, termination, or completion of a contract by an employee.

According to Espiritu, the law provides for the timely release of final pay to departing employees who have completed clearance requirements.

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. 

Failure to comply not only deprives workers of their hard-earned money but can also expose companies to legal repercussions, said Espiritu.

The lawyer also stressed that 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 added.

The group called for better enforcement of labor laws, including stricter penalties for businesses that consistently fail to meet their obligations to workers. They also recommended that employees familiarize themselves with their rights to ensure they can demand proper compensation upon leaving a company.

To further improve compliance, TRABAHO Party-list encouraged both businesses and employees to engage in open communication. 

Employers, it said, 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.