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13th Entitlement for Resigned Employee

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1 13th Entitlement for Resigned Employee on Thu Oct 20, 2016 12:45 pm

EllieRecruiter


Arresto Menor
Dear PinoyLawyer,

I would like to seek legal advise regarding my situation. I am a regular employee in a private company and I am planning to tender my resignation (with 30 days notice) by October 31 that will end by November 30. My concern is that my current company will hold my 13th month pay? I know that by law companies must release the 13th month pay not later than December 25. The "back pay" (inclusive of tax computation, unused leaves, etc.) in our company take 2 months (60days) for them to "process". My main question is, can they hold my 13th month pay? If they do I would only be able to receive that by Feb 2017, which I believe would be very bery unfair on my part.

Please advise.

Thank you
More power.

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2 Re: 13th Entitlement for Resigned Employee on Thu Oct 20, 2016 1:43 pm

HrDude


Reclusion Perpetua
Companies can do that. They are not actually not doing anything illegal. All monetary payments due the employee can be held TEMPORARILY by the company and will form part of the backpay if the employee is separated from the company... and this includes the 13th mo pay.

You call this unfair but in truth it is legal. What would be really unfair is if you will not get your 13th mo pay at all.

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