Companies risk damaging their reputation when departing employees encounter delays or confusion in receiving their final pay, according to an HR executive.

Subramanyam Sreenivasaiah, director and CEO of Ascent HR Inc. Philippines, said the employee experience does not end when a worker leaves a company, with offboarding potentially shaping how former employees view and talk about their employers.

In an editorial contribution, Sreenivasaiah cited data from the Department of Labor and Employment showing that it received more than 48,000 worker concerns through Hotline 1349 in the first quarter of 2026, with final pay noncompliance emerging as the top labor standards complaint.

He said delayed final clearance, back pay and poor communication can lead to negative employee reviews and affect an organization's ability to attract future talent.

Under DoLE Labor Advisory No. 06, Series of 2020, employers are generally expected to release final pay within 30 days after an employee's separation, unless a more favorable company policy applies. Sreenivasaiah said the agency recorded more than 3,000 final pay-related concerns during the first few months of 2026.

For departing workers, delays in receiving final pay can have immediate financial consequences, including difficulties covering everyday expenses, supporting families or transitioning to new employment, he said.

Sreenivasaiah noted that final clearance often involves several departments, including human resources, finance, information technology, department heads and payroll. When these functions operate independently, bottlenecks can arise and delay the separation process.

He said companies should treat offboarding as an integrated employee experience rather than simply an administrative process for processing final pay.

Automation can help connect departments, standardize approvals, provide visibility into outstanding requirements and support payroll calculations based on applicable local rules, according to Sreenivasaiah.

However, he stressed that technology should complement rather than replace communication and empathy from HR teams.

“When routine administrative work is streamlined, HR can focus on the human side of the transition: answering questions, setting expectations, and ensuring employees understand the next steps,” Sreenivasaiah said.

He also emphasized transparency, saying employees should be informed about the status of their clearance, remaining requirements and when they can reasonably expect to receive their final pay.

Providing such visibility can reduce uncertainty, strengthen trust and help prevent disputes from escalating, he said.

Sreenivasaiah added that how a company handles departing employees can also influence those who remain, as an efficient offboarding process demonstrates that an organization treats its people fairly throughout the employee lifecycle.