Tag - Final Pay

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 all [...]

Release, Waiver and Quitclaim: How to Grant the Final Pay of Deceased Employee

Release, Waiver and Quitclaim is an important document to establish the relinquishment by the claimant of the right against the company. In the case of employer-employee relationship, the right mentioned refers to the benefits to which the employee is entitled to. The rights of the employee accrue in accordance with law. Thus, even if the employee dies, the benefits that have already accrued in his favor may be claimed by his heirs. The employer is under obligation to release the final [...]

Final Pay and Certificate of Employment Guidelines Per Labor Advisory 06, Series of 2020 PDF File

Final pay refers to the sum  or totality of all the wages or monetary benefits due the employee regardless of the cause of the termination of employment, including but not limited to: Unpaid earned salary of the employee; Cash conversion of unused Service Incentive Leave (SIL) pursuant to Article 95 of the Labor Code; Cash conversion of remaining unused vacation, sick or other leaves pursuant to a company policy, or individual or collective bargaining agreement, if applicable; Pro-rated 13th month pay pursuant to [...]

Final Pay Computation of Employee with Above Minimum Salary

Final pay is a general term used by most employers to refer to the last pay to be given to an employee who got separated from the company. Usually, separation is on account of employee’s resignation. Resignation should be voluntary otherwise it can be constructive dismissal at the very least. Separation may also be due to just cause or authorized cause under Articles 297 and 298 of the re-numbered Labor Code, as amended. An employee who separated from the company is [...]

Final Pay Sample Computation of Resigned Employee Based on NCR Minimum Wage NCR-22

Final pay is the last pay or salary given to employee after separation from service. One of those modes of cutting employment relationship is resignation. An employee who resigns is not entitled to separation pay. The latter benefit is given for employees who were declared redundant, retrenched, or terminated due to closure of business where the company is not suffering from serious financial reverses. So, what do employees who resigned get from the company? If the company has superior benefits than what [...]

Final Pay, Separation Pay, Back Pay, Backwages, Severance Pay, Separation Package, Retirement Pay, Terminal Pay, and Financial Assistance: What’s the Difference?

Final pay is often confused with separation pay. These two concepts are different. To clarify the pay given to employees at the end of employment, for whatever reason that he was separated, I will discuss the difference among these terms and many others that workers normally use when they end their employment. Final pay is a loose term used by companies, more particularly HR department, to refer to the salary and benefits to which the employee who was separated is entitled [...]

Resigned Employee: How to Compute Final Pay

Resigned employee: How to Compute Final Pay is a post about the figures surrounding the last pay of an employee who already resigned. The Labor Code provides the minimum requirements. Exceeding such requirements will not violate the law. Giving below the amount required is a violation. In this post we will tackle the benefits as mandated by law. Let us say Employee X, a daily paid worker in NCR, resigned effective October 15, 2017, following the 30-day prior notice rule in Article [...]

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