Philippine Labor Law Glossary
Money Claim is a demand for wages, benefits, damages or another monetary amount arising from an employer-employee relationship, labor law, employment contract or related legal obligation.
Common Types of Money Claims
A labor money claim may involve unpaid salary, overtime pay, holiday pay, premium pay, night-shift differential, thirteenth-month pay, service incentive leave pay, commissions, final-pay components, unlawful deductions or damages arising from the employment relationship.
The legal forum depends on the nature and amount of the claim, whether reinstatement is requested, whether termination is disputed and whether another agency has special jurisdiction.
Jurisdiction
Labor Arbiters generally hear termination disputes and many claims arising from employer-employee relations, including claims exceeding the statutory small-claim threshold and claims connected with reinstatement. Certain simple money claims may fall within the authority of a DOLE Regional Director or hearing officer. The National Labor Relations Commission reviews Labor Arbiter decisions and exercises other jurisdiction assigned by law.
SEnA commonly provides a non-adjudicatory opportunity to seek settlement before formal litigation.
Prescription
Article 306 provides that money claims arising from employer-employee relations must generally be filed within three years from the time the cause of action accrued. Determining when a claim accrued may require a claim-specific analysis. Delay can permanently bar recovery even when the underlying benefit was originally due.
Legal Basis
| Authority | Rule supported | Official source |
|---|---|---|
| NLRC Mandate and Jurisdiction | Lists claims and disputes within Regional Arbitration Branch and Commission jurisdiction. | National Labor Relations Commission |
| NLRC Frequently Asked Questions | Explains Labor Arbiter and NLRC jurisdiction under the Labor Code and 2025 Rules. | National Labor Relations Commission |
| Labor Code, Article 306 | Provides the general three-year prescriptive period for labor money claims. | Supreme Court E-Library |
Evidence and Computation
| Record | Why it matters |
|---|---|
| Employment contract and policies | Identify agreed compensation and benefits. |
| Payslips, payroll and bank records | Show amounts earned and paid. |
| Attendance, time and schedule records | Support claims involving hours, overtime and premiums. |
| Leave and benefit ledgers | Support leave conversion and statutory benefits. |
| Demand letters and written requests | Document the claim and employer response. |
| Detailed computation | Shows the period, rate, formula and total requested. |
Burden of Proof
The party asserting a claim should identify its factual and legal basis. Employers often control payroll, attendance and payment records and may be required to prove payment once entitlement and nonpayment are properly put in issue. See Burden of Proof.
Practical Example
Hypothetical example: An employee claims unpaid overtime for two years. The employee presents schedules, messages and personal time records. The employer presents official timekeeping and payroll records. The proper forum must determine coverage, actual hours, the applicable rate, payment and whether each part of the claim was filed within three years.
Common Misunderstandings
Misunderstanding: Every unpaid amount must be filed directly with the NLRC.
Correct approach: Forum and procedure depend on the claim, amount, reinstatement request and governing law.
Misunderstanding: A valid claim can be filed at any time.
Correct approach: Article 306 generally imposes a three-year prescriptive period.
Sources and Legal Citations
- National Labor Relations Commission, Mandate and Jurisdiction.
- National Labor Relations Commission, Frequently Asked Questions.
- Labor Code, Article 306, as quoted in Supreme Court jurisprudence, Supreme Court E-Library.
Editorial Review and Legal-Review Status
Prepared by: LaborCode.ph Editorial Team
Editorial review: Reviewed under the LaborCode.ph Content Review Policy
Source verification: Official legal sources checked on August 2, 2026
Research coverage: This entry is based on a comprehensive and exhaustive review of relevant Philippine labor-law sources.
Editorial approach: The material is presented as a written digest prepared by labor-law researchers and experts, offering selective but broad insights for general educational use.
Disclaimer
This glossary entry is for general educational and legal-information purposes and is not legal advice. Jurisdiction, accrual, prescription and computation depend on the particular claim and evidence.