Security Guard Unpaid Wages: Agency and Client Liability (PH)

If your security agency underpaid you or stopped paying you, the client company where you are posted can be made to pay those wages too. The Labor Code treats the client as an indirect employer. It is jointly and severally liable with the agency for unpaid wages and wage-related benefits, for the period you guarded its premises.^[1][5]

The usual story: a “package rate” for 12-hour duty, no overtime, holiday duty paid as an ordinary day, a cash bond never returned, and late sahod. The agency blames the client’s late billing; the client says it already paid the agency. This guide shows who owes you, what to claim, where to file, and the post records that prove it.

Direct Answer

A security guard with unpaid wages or benefits can claim from both the security agency and the client where he or she was posted. Under Articles 106, 107 and 109 of the Labor Code, the client is solidarily liable with the agency for wages and wage-related benefits, limited to the period the guard served that client.^[1][5] The guard may collect from either one.^[8] File a SEnA request at DOLE naming both, within three years of each unpaid payday.^[1][2]

Key Takeaways

• The agency is your direct employer, but the client is jointly and severally liable for your unpaid wages and wage-related benefits.^[1][6]
• The client’s liability covers only the period you were posted at its premises. Name every client you guarded during the unpaid period.^[5]
• The client cannot escape by saying it already paid the agency. Its remedy is reimbursement under the service contract, not refusal.^[9]
• Wage-order increases are ultimately borne by the client, but you may still collect from either party.^[6][7][8]
• Backwages and separation pay from a dismissal are generally the agency’s burden, unless the client took part in the dismissal.^[5]
• Start with SEnA. Claims above ₱5,000 per guard, or with a dismissal, go to the NLRC Labor Arbiter if not settled.^[1][2]
• Money claims prescribe three years from each unpaid payday.^[1]

Legal Basis

Authority	Classification	Rule Supported	Effect
Labor Code Arts. 106, 107 and 109	Statute	The principal is jointly and severally liable with its contractor for unpaid wages, to the extent of the work performed under the contract; a party contracting out work is an indirect employer	Lets you collect from the client, not only the agency
Labor Code Arts. 103, 113 and 114	Statute	Wages paid at least once every two weeks or twice a month at intervals not exceeding 16 days; only authorized deductions; deposits for losses are limited	Late pay and unlawful deductions become claims
Labor Code Arts. 128, 129, 224 [217] and 306 [291]	Statute	DOLE inspection; Regional Director for claims of ₱5,000 or less without reinstatement; Labor Arbiter for larger claims and dismissal; three-year prescription	Tells you where and when to file
RA 10396	Statute	Mandatory conciliation-mediation of labor and employment issues	SEnA is the first stop
RA 11917, Secs. 8, 9 and 16	Statute	Agency bond answers valid claims of employees; administrative fee of at least 20% of the total contract cost; license may be suspended or cancelled for Labor Code violations	Adds a bond and license pressure to your claim
DOLE D.O. No. 150-16	Department Order	Guards, including relievers, are entitled to labor standards such as overtime, premium pay and service incentive leave; regulates service agreements, deductions and cash bonds	Industry rules for security agencies and clients
Rosewood (1998); Alpha Investigation (1997); Lapanday (2000); Eparwa (2006); GSIS v. NLRC (2007)	Supreme Court decisions	Client solidarily liable for guards’ wage claims during its contract; ultimate liability for wage-order increases rests with the client; paying the agency is no defense	Defines how far the client is liable

Agency or Client: Who Pays a Security Guard’s Unpaid Wages

Your security agency hired you, pays you and disciplines you. It is your direct employer. The mall, bank, school or condo you guard is the client, or principal. Article 106 makes the principal jointly and severally liable with its contractor if the contractor fails to pay wages, and Article 107 extends the same rule to any person who contracts out work without being the direct employer.^[1]

The client is liable only for its own posting period

In Rosewood Processing v. NLRC, guards of Veterans Philippine Scout Security Agency sued the company they guarded. The Supreme Court held the client solidarily liable for wage differentials, but only for the period each guard worked at its premises.^[5] So if you were rotated across three posts in a year, list every client and the dates you served each one.

Paying the agency is not a defense

In GSIS v. NLRC, guards of Lanting Security and Watchman Agency were underpaid while posted at GSIS properties. GSIS argued it had already paid the agency and would be paying twice. The Court rejected this and held GSIS jointly and solidarily liable for the salary differentials, 13th month pay and service incentive leave pay, with a right to seek reimbursement from the agency.^[9] Joint liability exists to assure workers of immediate and sufficient payment.^[9]

Wage-order increases: the client bears them in the end

When a regional wage order raises the minimum wage mid-contract, the agency cannot simply keep paying the old rate. In Alpha Investigation and Security Agency v. NLRC, the Court held the agency jointly and severally liable with the client university for the wage increases, and said that ultimate liability for the increases rests with the principal.^[6] In Eparwa Security v. Liceo de Cagayan University, the Court added that guards may collect from any one of the solidary debtors, and the agency that pays may claim reimbursement from the client.^[8] Lapanday v. Court of Appeals clarifies that the client’s duty to reimburse the agency arises only after the agency actually pays the guards.^[7]

If the agency is only a labor supplier

If the client’s own officers run your post and the agency is a shell, the setup may be labor-only contracting under Articles 106 to 109, making the client your direct employer for all purposes.^[1]

What You Can Claim, With a Peso Example

Wage-related claims against the agency and client include unpaid basic pay, underpayment below the regional minimum, overtime beyond eight hours, night shift differential, holiday and rest-day premiums, service incentive leave conversion and 13th month pay.^[1][9] D.O. 150-16 confirms that guards, including relievers and those on weekend or temporary duty, are entitled to these labor standards.^[4] Article 111 allows attorney’s fees of up to 10% of wages recovered when wages are unlawfully withheld.^[1]

Worked peso example: the 12-hour “package rate”

Assume a guard on a 12-hour day post, 26 duty days a month, paid a flat ₱700 per duty. Assume the applicable regional minimum is ₱650 a day (an illustrative rate; check your region’s current wage order).

Item	Computation	Amount
Hourly rate	₱650 ÷ 8	₱81.25
Overtime per duty	₱81.25 × 125% × 4 hours	₱406.25
Amount due per duty	₱650 + ₱406.25	₱1,056.25
Shortfall per duty	₱1,056.25 − ₱700	₱356.25
Shortfall per month	₱356.25 × 26	₱9,262.50
Six months at one client	₱9,262.50 × 6	₱55,575.00
Attorney’s fees (if awarded)	10% of wages recovered	₱5,557.50

This excludes holiday duty, rest-day work and the 13th month adjustment, which add more. If you work a night post, add the 10% differential for hours between 10:00 PM and 6:00 AM; see our night shift differential guide. For holiday and rest-day stacking on long shifts, use the 12-hour shift overtime and holiday pay guide for guards. The minimum-wage underpayment calculator handles the basic differential.

Cash Bonds, Deductions and Late Sahod

Many guard claims come from what the agency takes out.

• Cash bond or “deposit.” Article 114 bars employers from requiring deposits for loss or damage to tools and equipment, except in trades where the practice is recognized or allowed by the Secretary of Labor.^[1] D.O. 150-16 sets the industry rules on cash bonds.^[4] Ask for a written accounting and the refund when you resign or are relieved.
• Uniform, firearm or license deductions. Article 113 allows only deductions authorized by law or by the worker in writing, among a few others.^[1] Read our guide on unauthorized salary deductions.
• Late pay. Wages must be paid at least once every two weeks or twice a month, at intervals not exceeding 16 days.^[1] “Wala pang bayad ang client” is not a lawful reason to delay sahod.
• Unpaid floating status. If you are pulled out and not reposted, your pay during a bona fide off-detail period follows the six-month floating status rule. Beyond that, the issue becomes a dismissal claim against the agency.^[1]

RA 11917 also helps. The agency must post a bond that answers valid claims of its employees, and its license may be suspended or cancelled for violating the Labor Code.^[3] The law sets the agency’s administrative fee at not less than 20% of the total contract cost, separate from guards’ pay.^[3]

Post Records That Prove Your Claim

Guards often lack proper payslips. Your case is built on post records that show where you stood, when, and for how long.

Evidence	Where to Get It	What It Proves
Duty Detail Order (DDO)	Your copy from the agency; photograph it	Assigned client, post and shift hours
Post logbook and time-in/time-out entries	Guard house; photograph your own entries, ask DOLE to require production	Actual 12-hour duties, holidays and rest days worked
Payslips, ATM credit history or payroll envelopes	Bank app, envelopes, payroll signatures	Rate actually paid and missing paydays
Security license and agency ID	Your wallet	Your employment with the agency
Client ID, gate pass or visitor badge	Issued by the client	Which client you served and when
Group chats with detachment commander or inspector	Viber or Messenger screenshots with dates	Shift orders, promises to pay, admissions of delay
Cash bond receipts and deduction notes	Payslips, signed forms	Amounts withheld and owed back

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

Step-by-Step: Filing Your Claim

1. List every post and period. Write each client, address, dates served, shift length and daily rate.
2. Compute the shortfall per client. Separate basic underpayment, overtime, night differential, holiday pay, SIL and 13th month, because each client answers only for its own period.^[5]
3. Demand payment in writing. Send a short letter or message to the agency’s operations manager. Keep proof of sending.
4. File a SEnA Request for Assistance. Name the agency and each client as respondents.^[2] Our SEnA filing guide explains the form. Guards of the same detachment may file together.
5. Attend the conference. Bring your computation. Read any settlement amount before signing.
6. Escalate if unresolved. Claims of ₱5,000 or less without reinstatement may go to the DOLE Regional Director; larger claims or dismissal cases go to the Labor Arbiter.^[1] Compare routes in DOLE or NLRC: where to file, and see what happens when SEnA fails.
7. Watch the three-year clock. Each unpaid payday prescribes separately.^[1] See labor money claims and prescription periods.

Common Mistakes

• Suing only the agency. Small agencies close or change names. Including the client gives you a solvent co-debtor for wage claims.^[8][9]
• Naming only your current client. Each client answers only for its posting period.^[5] Name past clients for older unpaid months.
• Asking the client for backwages. Backwages and separation pay are generally the agency’s liability unless the client participated in the dismissal.^[5] Keep those claims aimed at the agency.
• Accepting the package rate as lawful. A flat rate for 12 hours that falls below minimum wage plus four hours of overtime is underpayment. Check the underpayment of wages definition.
• Signing a quitclaim at relief. A quitclaim for a fraction of the amount due can be questioned, but it complicates your case. Read our guide on release, waiver and quitclaim first.

Frequently Asked Questions

Can a security guard file a complaint against the client company, not just the agency?

Yes. Articles 106, 107 and 109 of the Labor Code make the client an indirect employer that is jointly and severally liable with the security agency for unpaid wages and wage-related benefits. You do not need to prove the client hired you. You need to prove you were posted there and were not paid correctly for that period.

The client says it already paid the agency. Do I lose my claim against the client?

No. In GSIS v. NLRC, the Supreme Court held the client solidarily liable for guards’ salary differentials even though it argued it had already paid the agency. The client’s remedy is to seek reimbursement from the agency under their service contract. That dispute does not reduce what you can collect.

Can I claim from a client I guarded two years ago?

Yes, if the claim is filed within three years of each unpaid payday under Article 306 [291]. The client is liable only for wages earned while you were posted at its premises, as held in Rosewood Processing v. NLRC. Paydays older than three years are generally barred, so file as soon as possible.

Is the client liable if the agency dismissed me illegally?

Generally not for backwages or separation pay. In Rosewood, the Court held that these awards could not be charged to the client without proof that it took part in the illegal dismissal. The client remains solidarily liable for unpaid wage-related claims during your posting. Pursue the dismissal claim against the agency before the Labor Arbiter.

Who pays when a new wage order raises the minimum wage?

The agency must pay you the new rate from the effectivity date. Between agency and client, the Supreme Court in Alpha Investigation and Eparwa held that ultimate liability for wage-order increases rests with the client. For your claim, it does not matter which of them bears the final cost. You may collect the increase from either one.

Can the agency refuse to return my cash bond?

Not without a lawful basis. Article 114 restricts deposits for loss or damage, and D.O. 150-16 regulates cash bonds in the security industry. If the agency kept your bond without proof that you caused a specific loss and without due process, include the refund in your SEnA request with your other money claims.

What to Do Next

1. Today: photograph your DDO, agency ID, client gate pass and any payslips or ATM credit history.
2. This week: list every post, client and date range, then compute the shortfall per client.
3. File: lodge a SEnA Request for Assistance naming the agency and each client. If you are threatened with relief or a far-off post after filing, read employer retaliation after a complaint.

If you are the client

Ask the agency for proof of payroll and remittances before releasing monthly billings, and keep copies. Make sure the contract price covers the current wage order and the administrative fee of at least 20% required by RA 11917.^[3] These steps do not remove your solidary liability, but they protect your reimbursement right.^[9]

Before you file: if you were also relieved and not reposted, use the free Illegal Dismissal Remedy Estimator to see what a dismissal claim against the agency may involve, on top of your wage claims. Then check your oldest unpaid paydays with the Labor Claim Filing-Deadline Calculator so you file well within the three-year period.

Related Guides for Security Guards

• Security Guard 12-Hour Shift Overtime and Holiday Pay (PH)
• Security Guard Sleeping on Duty: Termination Rules (PH)
• Security Guard Abandonment of Post: Dismissal Rules (PH)
• Construction Worker Unpaid Wages From a Subcontractor: Who Pays? (PH)
• Can a Kasambahay File a Complaint for Illegal Dismissal? (PH Guide)
• Delivery Rider Deactivated? Illegal Dismissal Rights and How to File
• Can a BPO Agent Sue for Constructive Dismissal Over a Transfer? (PH)
• Labor-Only Contracting in the Philippines: Articles 106 to 109 and Who Becomes Liable
• Money Claim Meaning in Philippine Labor Law

Sources and Legal Citations

Labor Code and Implementing Rules

[1] Presidential Decree No. 442, Labor Code of the Philippines, Articles 103, 106 to 109, 111, 113, 114, 128, 129, 217 (renumbered Article 224), 286 (renumbered Article 301) and 291 (renumbered Article 306), Lawphil. Supports: solidary liability of principal and contractor; indirect employer; frequency of wage payment; deductions and deposits; attorney’s fees; DOLE and Labor Arbiter jurisdiction; bona fide suspension of work; three-year prescription.

[2] Republic Act No. 10396, Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases (March 14, 2013), Lawphil. Supports: mandatory conciliation-mediation through SEnA.

[3] Republic Act No. 11917, The Private Security Services Industry Act (lapsed into law July 30, 2022), Sections 8, 9 and 16, Supreme Court E-Library. Supports: agency bond answering valid employee claims; minimum administrative fee of 20% of total contract cost; license sanctions for Labor Code violations.

[4] DOLE Department Order No. 150, Series of 2016, Revised Guidelines Governing the Employment and Working Conditions of Security Guards and Other Private Security Personnel in the Private Security Industry (February 9, 2016), Department of Labor and Employment. Supports: labor standards entitlements of guards including relievers; rules on service agreements, deductions and cash bonds.

Supreme Court Decisions

[5] Rosewood Processing, Inc. v. National Labor Relations Commission, G.R. Nos. 116476-84, May 21, 1998, Supreme Court E-Library. Supports: client solidarily liable with the security agency for wage differentials only for the period the guards served it; not liable for backwages or separation pay absent participation in the dismissal.

[6] Alpha Investigation and Security Agency, Inc. v. National Labor Relations Commission, G.R. No. 111722, May 27, 1997, Supreme Court E-Library. Supports: agency and client jointly and severally liable for guards’ wage increases; ultimate liability rests with the principal.

[7] Lapanday Agricultural Development Corporation v. Court of Appeals, G.R. No. 112139, January 31, 2000, Supreme Court E-Library. Supports: principal is the indirect employer of the agency’s guards; principal’s duty to reimburse wage increases arises only after the agency actually pays the guards.

[8] Eparwa Security and Janitorial Services, Inc. v. Liceo de Cagayan University, G.R. No. 150402, November 28, 2006, Lawphil. Supports: security guards may collect from any one of the solidary debtors; agency may seek reimbursement from the client for wage differentials paid.

[9] Government Service Insurance System v. National Labor Relations Commission, G.R. No. 157647, October 15, 2007, Supreme Court E-Library. Supports: client solidarily liable with the security agency for guards’ salary differentials despite having paid the agency; joint liability assures immediate payment; reimbursement under the service contract.

Sources rechecked as of: November 7, 2026