Resigned employee’s last salary must be given within reasonable time

Dear PAO,

I resigned as a regular employee in April 2010. I already made the necessary turnover of company properties before my last day of work. I have left no debt or liability with the company. Since my resignation, I have not received my last pay although the company has already issued the necessary clearance.
Is it true that I will receive my last pay on the next payroll after I am cleared in the company? I was expecting for the release of my salary on the 30th of last month, but the company did not give my salary. Is the company justified in withholding my last pay? What would be my next step in order to get my last pay?

DAC, Jr.

Dear DAC, Jr.,

Resignation is defined as “the voluntary act of an employee who finds himself in a situation where he believes that personal reasons cannot be sacrificed in favor of the exigency of the service, then he has no other choice but to disassociate himself from his employment.” In the context of Section II, Rule XIV, Book V of the Revised Rules Implementing the Labor Code, resignation is a formal pronouncement or relinquishment of an office. It must be made with the intention of relinquishing the office accompanied by an act of relinquishment (Molave Tours Corp. v NLRC, G.R. No. 112909 November 24, 1995).

It is a usual practice in a company to hold the last salary owing to a resigned employee until he has made the proper endorsement of his duties, turnover of company properties issued to him and payment of liabilities. This practice is not categorically mentioned in the Labor Code or existing labor laws. However, we see it as a method of the company to protect itself from irresponsible employees who would run from their obligations or liabilities. The company sees no other recourse except to withhold the last salary as guarantee that said resigned employee would make good his liability.

After clearance, we do not see any reason for the company to further withhold the last salary of a resigned employee. Again, our Labor Code is silent as to the period of payment of the last salary after clearance is made. Since there is no specific provision of law that covers this, we opine that it must be given within a reasonable time. In the absence of any provision in the contract, the last salary may be included in the computation for the next payroll.

If despite demand, your former company has not given your salary, you may file a formal complaint at the Department of Labor and Employment or the National Labor Relations Commission having jurisdiction over the place where the company is located. Under the 2005 Revised Rules of Procedure of the National Labor Relations Commission, a complaint to be filed with the NLRC is a pleading alleging the cause or causes of action of the complainant. Here, the name of the complainant and the respondent is stated therein. The complaint must be signed under oath by the complainant with declaration of nonforum shopping (Section 1, Rule 3, 2005 Revised Rules of Procedure of the National Labor Relations). –PERSIDA ACOSTA, Manila Times

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it or via text message (key in: Times dearpao <YOUR QUESTIONS> and send to 2299).