Philippine Bar review · Question

Practice question: Clearance Procedures

Multiple Choice Medium

Practice question

An employee has returned all property, and the employer admits there are no outstanding accountabilities. HR nevertheless says final pay may be withheld indefinitely because its clearance form has not been signed by a manager on vacation. Which is best?
  1. A missing signature always defeats earned pay forever
  2. Milan authorizes delay for any administrative reason
  3. The worker must surrender all statutory claims to obtain a signature
  4. The employer may invent a new debt to extend processing
  5. A clearance label does not justify indefinite withholding without an actual accountability; the applicable final-pay release rule must be observed

Legal references

  • Labor Advisory06-2020, release period; Milan v.NLRC distinguished: https://dole.gov.ph/news/final-pay-coe-must-be-released-on-time-dole/
  • Milan v.NLRC GR202961 February4 2015: https://lawphil.net/judjuris/juri2015/feb2015/gr_202961_2015.html

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