Construction Worker Unpaid Wages From a Subcontractor: Who Pays? (PH)

If your subcontractor stopped paying you, the general contractor and the project owner can be made to pay your wages too. Philippine law does not let the companies above your foreman hide behind the subcontract. Under Articles 106 to 109 of the Labor Code, the principal is jointly and severally liable with the contractor or subcontractor for unpaid wages, to the extent of the work you performed under the contract.^[1]

This is the usual story on a construction site: the “pakyaw” subcontractor or labor supplier collects from the general contractor, then disappears or says “wala pang bayad ang main contractor.” Meanwhile you have weeks of unpaid sahod. This guide shows who you can claim from, what you can recover, where to file, and the site evidence that wins these cases.

Direct Answer

A construction worker unpaid by a subcontractor can claim the wages from the subcontractor, the general contractor and the project owner together. Article 106 of the Labor Code makes the principal jointly and severally liable for unpaid wages to the extent of the work performed, and Article 109 makes every employer or indirect employer responsible with its contractor.^[1] Start with a SEnA request at DOLE, name all three parties, and file within three years of each unpaid payday.^[1][2]

Key Takeaways

• You do not have to chase only the subcontractor. The general contractor and the project owner are solidarily liable for your unpaid wages.^[1]
• The principal cannot refuse because it “already paid the subcontractor.” The Supreme Court rejected that defense.^[5]
• If the subcontractor is a labor-only contractor, the principal is treated as your direct employer for all purposes, not only wages.^[1][8]
• If the subcontractor is legitimate, the principal answers only for wage-related claims, not for backwages from a dismissal.^[4]
• Start with SEnA. Claims of ₱5,000 or less per worker without reinstatement may be decided by the DOLE Regional Director; bigger claims or dismissal cases go to the NLRC Labor Arbiter.^[1][2]
• Money claims prescribe three years from the time each claim accrued.^[1]
• Your strongest evidence is from the site itself: gate logbook, site ID, payroll sheets, photos and group-chat messages with the foreman.

Legal Basis

Authority	Classification	Rule Supported	Effect
Labor Code Art. 106	Statute	If a contractor or subcontractor fails to pay wages, the employer is jointly and severally liable to the workers to the extent of the work performed under the contract; in labor-only contracting, the principal is treated as the direct employer	Lets you collect from the general contractor or project owner
Labor Code Arts. 107 and 109	Statute	A party that is not an employer but contracts out work is an indirect employer; every employer or indirect employer is responsible with its contractor for Labor Code violations	Brings the project owner into the claim
Labor Code Art. 108	Statute	The principal may require the contractor to post a bond to answer for wages	A bond may be a source of payment
Labor Code Arts. 128, 129, 224 [217] and 306 [291]	Statute	DOLE inspection and compliance orders; Regional Director for claims up to ₱5,000 without reinstatement; Labor Arbiter for other money claims and dismissal cases; three-year prescription	Tells you where and when to file
RA 10396	Statute	All labor and employment issues go through mandatory conciliation-mediation first	SEnA is your first stop
DOLE D.O. 19-93	Department Order	Construction workers of a permissible subcontractor are generally its employees; the construction company and general contractor must exercise sound judgment in contracting out to ensure labor standards compliance	Sets construction-specific duties on the general contractor
New Golden City Builders v. CA (2003); Mariveles Shipyard v. CA (2003); Diamond Farms v. SPFL (2016)	Supreme Court decisions	Principal liable for wages even with a legitimate subcontractor; paying the contractor is no defense; a contractor is presumed labor-only unless it proves otherwise	Defines how far each party is liable

Who Owes Your Wages on a Construction Site

Most sites have three layers. The project owner hires a general contractor. The general contractor subcontracts formwork, rebar, masonry or finishing to a subcontractor. The subcontractor, or a foreman working for it, hires you. Each layer can be liable, but not always to the same extent.

If the subcontractor is a legitimate job contractor

D.O. 19-93 recognizes that where contracting is permissible, construction workers are generally the employees of the contractor or subcontractor.^[3] Your subcontractor remains your employer. But Article 106 still makes the general contractor jointly and severally liable for unpaid wages, to the extent of the work you performed under the subcontract.^[1]

In New Golden City Builders v. Court of Appeals, a construction company building a 17-storey condominium subcontracted concrete, formwork and rebar work. The Supreme Court found the subcontractor legitimate, yet kept the construction company jointly and severally liable with it for the workers’ 13th month pay and service incentive leave pay.^[4] The Court also held that in legitimate job contracting the principal is liable only for wages, not for other claims such as backwages from dismissal.^[4]

If the subcontractor is only a labor supplier

Many site “subcontractors” are a foreman with a list of names, no equipment and no capital. Article 106 treats labor-only contracting as the principal hiring you directly: the contractor is merely its agent, and the principal is responsible to you as if it employed you itself.^[1] In Diamond Farms v. Southern Philippines Federation of Labor, the Court said a contractor is generally presumed to be labor-only unless it proves it has substantial capital or investment.^[8]

Signs to look for on your site: you used the general contractor’s scaffolding, mixer and tools; its project engineer gave you daily instructions; you wore its site ID or vest; and your work, such as concreting, is part of what the general contractor was hired to build. If that sounds familiar, read our guide to labor-only contracting and who becomes liable under Articles 106 to 109.

The project owner as indirect employer

Article 107 applies the same rules to anyone who, not being your employer, contracts with a contractor for work.^[1] A developer, a company building a warehouse, or a corporation renovating its office can therefore be named as indirect employer. Article 109 makes every employer or indirect employer responsible with its contractor or subcontractor for Labor Code violations.^[1]

What You Can Claim, With a Peso Example

Your claim covers wages and wage-related amounts you earned but were not paid: basic daily wage, overtime, holiday and rest-day premiums, wage differentials if you were paid below the regional minimum, 13th month pay and service incentive leave.^[1][4] Article 111 also allows attorney’s fees of up to 10% of the wages recovered when wages are unlawfully withheld.^[1] If overtime is part of your claim, compute it first with our construction worker overtime pay guide.

Worked peso example

Assume a mason earning ₱700 a day (an illustrative rate; check your region’s current wage order). The subcontractor did not pay the last three weekly payrolls of six working days each, plus 10 hours of overtime.

Item	Computation	Amount
Unpaid basic wages	18 days × ₱700	₱12,600.00
Unpaid overtime	₱700 ÷ 8 = ₱87.50 × 125% × 10 hours	₱1,093.75
Total unpaid wages	Unpaid basic wages plus unpaid overtime	₱13,693.75
Attorney’s fees (if awarded)	10% of wages recovered	₱1,369.38

This crew member’s claim is above ₱5,000, so a Regional Director cannot decide it under Article 129 as a stand-alone claim.^[1] Expect the case to go to the Labor Arbiter if SEnA fails, unless a DOLE inspection catches it while you are still working on site. Use the minimum-wage and underpayment calculator if your daily rate was also below the minimum.

What the general contractor may refuse

If the subcontractor is legitimate and also dismissed you, backwages and separation pay are claims against the subcontractor, not the principal.^[4] If the subcontractor is labor-only, the general contractor is your real employer and those claims run against it too.^[1][8] This is why the labor-only question matters most when you were also sent home.

Where to File: SEnA, DOLE or NLRC

RA 10396 makes conciliation-mediation mandatory for all labor and employment issues.^[2] In practice, you file a Request for Assistance under SEnA at the DOLE field or regional office covering the site. See our SEnA filing guide for what to bring.

• Still working on the site: DOLE may inspect and issue compliance orders under Article 128, even where individual claims exceed ₱5,000, as long as the employer-employee relationship still exists.^[1] A whole-crew complaint often triggers this.
• Small claim, no reinstatement: claims of ₱5,000 or less per worker may be heard by the DOLE Regional Director under Article 129.^[1]
• Larger claims or dismissal: the Labor Arbiter of the NLRC under Article 224 [217].^[1] Compare the routes in DOLE or NLRC: where to file.

If the SEnA conference ends without settlement, you get a referral to the proper office. Our guide on what happens when SEnA fails explains the next filing.

Site Evidence That Proves Your Claim

Construction workers rarely have payslips. You win on site records that tie you to the project and the general contractor.

Evidence	Where to Get It	What It Proves
Site ID, vest or hard hat with company name	Your own gear; take photos	Who controlled the site and admitted you
Gate logbook or biometric entries	Guard post; ask DOLE to require production	Your dates of work
Payroll sheets or envelopes (“payroll ng pakyaw”)	Old envelopes, photos of signed payroll	Your daily rate and the unpaid weeks
Project signboard	Photo of the sign at the gate	Names of the project owner and contractor
Group chats with foreman or engineer	Messenger or Viber screenshots with dates	Instructions, promises to pay, admissions of non-payment
Photos of you working	Your phone, with date stamps	Presence on site and type of work
Co-workers’ statements	Your crew	Common pattern of non-payment

The documents checklist for a DOLE labor complaint lists the identity papers you will also need.

Step-by-Step: Recovering Your Unpaid Wages

1. List the unpaid paydays. Write each week, days worked, daily rate and overtime hours.
2. Identify all three parties. Get the exact names of the subcontractor, the general contractor and the project owner from the signboard, your ID and the gate pass.
3. Demand payment in writing. Send a short text or letter to the subcontractor and the general contractor’s project engineer. Keep the screenshots.
4. File a SEnA Request for Assistance. Name all three parties as respondents.^[2] File as a group if your crew has the same claim.
5. Attend the conference. Bring your computation and evidence. A settlement signed before the desk officer can end the dispute, so read the amount before signing.
6. Escalate if unresolved. File with the DOLE Regional Office or the NLRC Labor Arbiter, depending on amount and whether you were dismissed.^[1]
7. Watch the deadline. Money claims prescribe three years from accrual.^[1] See labor money claims and prescription periods.

Common Mistakes

• Naming only the subcontractor. If it has vanished, a win against it alone is hard to collect. Always include the general contractor and project owner.^[6][7]
• Accepting “bayad na kami sa subcon.” Payment to the contractor does not release the principal.^[5]
• Waiting for the project to end. DOLE’s inspection power under Article 128 applies while the employment relationship still exists.^[1] Filing while still on site keeps more options open.
• Signing a quitclaim for a fraction. Read our money claim basics before signing anything at the site office.
• Leaving no paper trail. Cash payouts with no envelope or signature are hard to prove. Photograph every payroll you sign.
• Confusing project status with no rights. Being a project employee does not reduce your right to be paid for work done.

Frequently Asked Questions

Can I file against the general contractor even if it did not hire me?

Yes. Article 106 makes the employer that contracts out work jointly and severally liable with its contractor or subcontractor for unpaid wages, to the extent of the work you performed under the contract. You do not need to prove the general contractor hired you. You need to prove you worked on its project and were not paid.

The general contractor says it already paid the subcontractor in full. Is that a defense?

No. In Mariveles Shipyard v. Court of Appeals, the Supreme Court held that a principal cannot evade liability by claiming it religiously paid its contractor, and that employers cannot hide behind their contracts. The principal may pay you and then seek reimbursement from the subcontractor. That dispute is between them, not you.

Can I also go after the owner of the building?

Often, yes. Article 107 extends the contractor rules to any person or company that, not being your employer, contracts with a contractor for work, and Article 109 makes every indirect employer responsible with its contractor. Name the project owner shown on the project signboard as a respondent along with the contractors.

How much of my claim can the principal be made to pay?

For a legitimate subcontractor, the principal answers for unpaid wages and wage-related benefits to the extent of the work performed under the contract, but not backwages from a dismissal. If the subcontractor turns out to be labor-only, the principal is treated as your direct employer and answers for all your claims.

Is there a deadline to file for unpaid wages?

Yes. Money claims arising from employment must be filed within three years from the time the cause of action accrued, under Article 306 [291] of the Labor Code. Each unpaid payday starts its own three-year clock, so older weeks expire first. File the SEnA request as soon as payment stops.

Can the whole crew file one complaint?

Yes. Workers with the same employer and the same unpaid paydays commonly file together at SEnA and later before DOLE or the NLRC. A group filing also helps prove the pattern of non-payment. Each worker should still prepare an individual computation of days, rates and overtime.

What to Do Next

1. Today: photograph your site ID, the project signboard and any payroll you still have.
2. This week: send a written demand to the subcontractor and the general contractor’s project engineer.
3. Compute: total your unpaid wages, overtime and 13th month share; read the labor-only contracting definition to check whether the principal is your real employer.
4. File: lodge a SEnA Request for Assistance naming all three parties. If you face threats after filing, read employer retaliation after a complaint.

If you are the general contractor

D.O. 19-93 requires you to exercise sound judgment in contracting out so labor standards are met.^[3] Require a bond under Article 108, ask for proof of payroll before releasing progress billings, and keep copies of your subcontractors’ payrolls.^[1] These steps do not remove your liability, but they protect your right to recover what you pay.^[5]

Before you file: use the free Illegal Dismissal Remedy Estimator if you were also sent home from the site, so you can see what a dismissal claim against the subcontractor or a labor-only principal may involve. Then check your timing with the Labor Claim Filing-Deadline Calculator so your oldest unpaid paydays are filed well within the three-year period.

Related Guides for Construction Workers

• Construction Worker Overtime Pay Computation: Rates and Examples (PH)
• Terminate Project Employee Before Project Completion: PH Rules
• Construction Worker Refused to Wear PPE: Dismissal Rules (PH)
• Construction Worker Drunk on Site: Termination Rules (PH)
• Construction Worker Rights in the Philippines: Wages, Safety and Project Employment
• Labor-Only Contracting in the Philippines: Articles 106 to 109 and Who Becomes Liable
• Underpayment of Wages Meaning in Philippine Labor Law
• Security Guard 12-Hour Shift Overtime and Holiday Pay (PH)
• Can a Kasambahay File a Complaint for Illegal Dismissal? (PH Guide)
• Can a BPO Agent Sue for Constructive Dismissal Over a Transfer? (PH)
• Warehouse Employee Positive Drug Test: Termination Rules (PH)
• Factory Worker Theft of Company Property: Termination Rules (PH)
• Factory Worker Fighting at Work: Dismissal Rules (PH)
• Kasambahay 13th Month Pay Computation: Rules and Examples (PH)
• Kasambahay Left Without Notice: Employer Rights and Rules (PH)
• Security Guard Sleeping on Duty: Termination Rules (PH)
• Terminate a Sales Representative for Underperformance or PIP (PH)
• How to Terminate a BPO Agent for Chronic Tardiness in the Philippines
• BPO Agent No Call, No Show (AWOL): Employer Rules in the Philippines
• BPO Agent Data Privacy Breach: Termination Rules for Employers (PH)
• BPO Campaign Pull-Out: Redundancy vs Floating Status Rules (PH)
• BPO Night Differential Computation: Rates and Examples (PH)

Sources and Legal Citations

Labor Code and Implementing Rules

[1] Presidential Decree No. 442, Labor Code of the Philippines, Articles 106 to 109, 111, 128 (as amended by RA 7730), 129, 217 (renumbered Article 224) and 291 (renumbered Article 306), Lawphil. Supports: solidary liability of principal and contractor; indirect employer; bond; attorney’s fees; DOLE visitorial and enforcement power; Regional Director and Labor Arbiter jurisdiction; three-year prescription of money claims.

[2] Republic Act No. 10396, Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases (approved March 14, 2013), amending Labor Code Article 228, Lawphil. Supports: mandatory conciliation-mediation of all labor and employment issues.

[3] DOLE Department Order No. 19, Series of 1993, Guidelines Governing the Employment of Workers in the Construction Industry (April 1, 1993), Sections 2.5, 6.1 and 6.3, Supreme Court E-Library. Supports: status of subcontractors’ workers; duty of the construction company and general contractor to ensure labor standards compliance; wage increases borne by principals.

Supreme Court Decisions

[4] New Golden City Builders & Development Corporation v. Court of Appeals, G.R. No. 154715, December 11, 2003, Supreme Court E-Library. Supports: a construction company is jointly and severally liable with a legitimate subcontractor for workers’ wages, 13th month pay and service incentive leave, but not for backwages.

[5] Mariveles Shipyard Corp. v. Court of Appeals, G.R. No. 144134, November 11, 2003, Supreme Court E-Library. Supports: the principal cannot evade liability by claiming it paid the contractor; the principal may seek reimbursement from the contractor.

[6] Eparwa Security and Janitorial Services, Inc. v. Liceo de Cagayan University, G.R. No. 150402, November 28, 2006, Lawphil. Supports: workers may collect from any one of the solidary debtors; joint liability exists to assure workers are paid.

[7] Government Service Insurance System v. National Labor Relations Commission, G.R. No. 157647, October 15, 2007, Supreme Court E-Library. Supports: joint and solidary liability is meant to assure aggrieved workers of immediate and sufficient payment of what is due them.

[8] Diamond Farms, Inc. v. Southern Philippines Federation of Labor (SPFL)-Workers Solidarity of DARBMUPCO/Diamond-SPFL, G.R. Nos. 173254-55 and 173263, January 13, 2016, Lawphil. Supports: a contractor is presumed labor-only unless it proves substantial capital or investment; in labor-only contracting the principal is the employer and solidarily liable for the workers’ claims.

Sources rechecked as of: October 21, 2026