The company I previously worked with said that I should submit my notarized quitclaim document before they give me my final paycheck. I witnessed that they did this to the previous employees too. Is that right?

Hello:

What you are experiencing is a very common concern among employees in the Philippines. Under the Labor Code, your employer has the obligation to release your final pay which normally includes unpaid wages, pro-rated 13th month pay, and any unused leave conversions if applicable. The Department of Labor and Employment (DOLE) has issued Labor Advisory No. 6, Series of 2020, which requires employers to release final pay within thirty days from separation, regardless of the reason for separation.

A quitclaim, on the other hand, is a waiver that the employer usually asks employees to sign stating that they have received their final pay and have no further claims against the company. While quitclaims are not illegal, they must be voluntarily signed and cannot be used to deprive you of what is legally due. The Supreme Court has ruled many times that a quitclaim will not bar an employee from pursuing claims if it was signed under undue pressure or without full and correct payment.

In your situation, a.) you have the right to review your payslip or computation first to ensure correctness before signing any quitclaim, b.) the employer should release your final pay within the thirty-day period even if you have not yet signed, because that is a statutory right, and c.) if the company insists on withholding your final pay until you sign, you may file a complaint at the nearest DOLE office for illegal withholding of wages.

We at Recososa Law Firm handle labor and employment cases like this. We have offices in Luzon, Visayas and Mindanao. We can schedule an initial consultation via google meet or zoom call, or you may also visit us in our office. You may send us an email at recososalawfirm@gmail.com and please indicate that you are a client from LawZana, or call or text us at +639175046510.

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