
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. 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.
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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.
“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.
Creating more jobs
Aside from protecting workers’ rights, the group also called on the government to create more job opportunities in the country, so that Filipinos would no longer resort to traveling abroad just to find work.
“The continued increase in remittances is a testament to the hard work and sacrifices of our fellow Filipinos working abroad. However, we must address the root causes of this migration trend. Our goal is to create more high-paying jobs here at home, ensuring that our workers will no longer need to leave their families to earn a living,” Espiritu said.
“We need to move away from the notion that working abroad is the only way to ensure a good life. By improving wages and offering competitive benefits here in the Philippines, we can retain our talents and help reduce the country’s reliance on remittances,” he added.
According to the group, if it wins a seat during the 2025 midterm polls, they will push for reforms to generate more stable and higher-paying employment opportunities within the country.
“We value the contributions of OFWs to our economy, but we must not forget about those who choose to remain and build their futures here. By ensuring better local opportunities we are strengthening the foundation of our country’s economic growth and providing a more secure future for Filipino families,” Espiritu noted.