Justice in Every Step: "Maaari bang hindi ibigay ang Last Pay ng Manggagawa?", Clearance Procedure
- Legis Lative
- Feb 25
- 2 min read

A standard procedure is to require the employee to return real or personal properties belonging to the company or employer before the employee leaves the company.
This is consistent with Article 116 of the Labor Code which provides:
ART. 116. Withholding of Wages and Kickbacks Prohibited. – It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the worker's consent.
As an exemption to this provision, the Supreme Court, in Milan vs. NLRC, ruled that:
An employer is allowed to withhold terminal pay and benefits pending the employee's return of its properties.
Sources:
Milan v. NLRC, G.R. No. 202961, 4 Feb.2015)
(Chan, 2019).
2024 UST Golden Notes Labor Law and Social Legislations
********************************************************************************
Email: balace.law@gmail.com
Balace Law is a full-service law office based in Quezon City headed by Atty. Arnulfo B. Balace.
Atty. Balace handles legal services which include:
Labor Law, Conciliation and Mediation (Department of Migrant Workers (DMW), National Labor Relations Commission (NLRC)- (Position paper, Reply, Rejoinder), Department of Labor and Employment (DOLE) Human Resources (HR) and Labor Compliance.
Litigation Practice (Labor Law, Criminal Law, Civil Law and Obligations, Administrative Law & Taxation.
Construction Industry Arbitration Commission (CIAC) Cases
Human Settlements Adjudication Commission (HSAC) Cases
Business Registration Services
Department of Trade and Industry (DTI)
Securities and Exchange Commission (SEC)
Professional Regulation Commission (PRC)
Ombudsman (OMB)
Serves as external counsel, under retainership agreement, to companies in the field of Business Processing Outsourcing (BPO), construction, fashion and textile, drugs and pharmaceutical, international manpower services, vehicle paint protection, security agency, and information technology (IT) by providing human resources (HR) assistance and government and legal compliance.



Comments