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Republic of the Philippines * DEPARTMENT OF LABOR AND EMPLOYMENT oe Intramuros, Manila Pore Thaw Jobs! LABOR ADvisoRY No. _“¥ Series of 2020 GUIDELINES ON THE PAYMENT OF FINAL PAY AND ISSUANCE OF CERTIFICATE OF EMPLOYMENT Pursuant to Articles 4, 103, 116, 118 of the Labor Code of the Philippines, as amended, and Section 10, Rule XIV, Book V of its Omnibus Implementing Rules and Regulations, this advisory is hereby issued as guidelines on the payment of Final Pay and Issuance of Certificate of Employment of an employee: I, DEFINITION OF TERMS 1. "Certificate of Employment’ refers to a certificate from the employer specifying the dates of an employee’s engagement and the termination of his/her employment and the type or types of work in which he/she is employed. For purposes of this advisory, an employee whose employment is not yet terminated may also ask for a Certificate of Employment. 2. "Final Pay”, "Last Pay’, or “Back 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: (a) Unpaid earned salary of the employee; (b) Cash conversion of unused Service Incentive Leave (SIL) pursuant to Article 95 of the Labor Code; (c) Cash conversions of remaining unused vacation, sick or other leaves pursuant to a company policy, or individual or collective agreement, if applicable; (d) Pro-rated 13" month pay pursuant to Presidential Decree No. 851 (PD 851); (e) Separation pay pursuant to Articles 298-299 of the Labor Code, as renumbered, company policy, or individual or collective agreement, if applicable; (f) Retirement pay pursuant to Article 302 of the Labor Code, as renumbered, if applicable; (g) Income tax claim for the excess of taxes withheld, if applicable; (h) Other types of compensation stipulated in an individual or collective agreement, if any; and (i) Cash Bond/s or any kind of deposit/s due for return to the employee, if any.