Final pay cut

Dear Atty. Kathy,

I recently resigned from Company A abroad. After completing the clearance requirements, I questioned the computation of my final pay, because it did not include the benefits stated in my employment contract, such as cash conversion of unused leave credits and pro-rated 14th month pay. Company A said that these benefits were already included in my payroll every month. However, when I checked the payslips they give me and also the transaction history of my payroll bank account, I did not see any amounts credited for my unused leave credits and 14th month pay. How can I prove that Company A paid me said benefits? Also, I am having a hard time contacting Company A for my pending final pay. Can I go after the recruitment agency who placed me in Company A?

Claire

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Dear Claire,

Based solely on your narration, the benefits in your employment contract with Company A includes cash conversion of unused leave credits and pro-rated 14th month pay.

To check if Company A complied with its contractual obligations in your employment contract, we have to rely on Company A’s own records. As ruled by the Supreme Court, in cases that involve the alleged underpayment of wages and other legally or contractually mandated benefits, the burden to prove payment rests on the employer because all pertinent personnel files, payrolls, records, remittances and other similar documents are in the custody and control of the employer. This is consistent with the general rule that one who pleads payment has the burden of proving it. A party who alleges that an obligation has been extinguished must prove facts or acts giving rise to the extinction.

Thus, it is not you, but Company A, who should prove that it paid you the benefits. In the absence of evidence that Company A indeed paid you the benefits, you would be entitled to your claim for the cash conversion of your unused leave credits and prorated 14th month pay.

With regard to seeking remedy from the recruitment agency who placed you in Company A, Republic Act 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995, provides:

SEC. 10. Money Claims. — xxx

The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages. (Emphasis supplied)

Therefore, you may seek payment of money claims from the recruitment/placement agency and its officers, directors, and partners, as may be applicable, based on their joint and solidary liability with Company A, as principal/employer.

(Stephanie A. Maitim, et al., versus Teknika Skills and Trade Services Inc., et al., G.R. No. 240143, 15 January 2025)

Atty. Kathy Larios