Tag - clearance

Delayed Release of Final Pay may Result in Criminal Liability

Final pay, last pay, or back pay, means the same under Labor Advisory 6, Series of 2020 issued by the Department of Labor and Employment (DOLE). To grasp the concept of the rules governing final pay, it is important to understand the rules, doctrines, and principles that interplay on this matter. Considering that this may relate to the policies and rules of employer, the principle on construction in favor of labor applies. Art. 4, of the Labor Code provides that [...]

Employers can Withhold Last Pay for Debt Due; Clearance Procedure

Clearance Procedure Requiring clearance before the release of last payments to the employee is a standard procedure among employers, whether public or private. Clearance procedures are instituted to ensure that the properties, real or personal, belonging to the employer but are in the possession of the separated employee, are returned to the employer before the employee’s departure. Withholding of wages prior to clerance As a general rule, employers are prohibited from withholding wages from employees. However, law supports the employers’ institution of clearance [...]

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