Certificate of COE Philippines

 A certificate of Employment (COE) is a formal document from an employer certifying an employee's tenure, position, and work status. It's a legal requirement in the Philippines for the employer to issue a COE, which may include the employee's salary details if requested by the employee.

A current or former employee can request a COE for many reasons, ranging from applying for a new job to a visa application. As per the Philippine labor laws and the DOLE labour advisory, employers must provide a COE upon request. Keep reading to know about the obligation of the issuer, requesting COE the right way, how to verify the individual's employment history, common challenges that employees face, and how to seek assistance.

What is a Certificate Of Employment COE? 

The employer (current or former) issues a certificate of Employment. Under Article 292(b) of the Philippine Labour Code (formerly Article 286) and DOLE Labour Advisory No. 06-20 (2020), employers must issue a COE within three calendar days of requesting it. Even though there could be a clearance process regarding returned company property, an employer cannot withhold a certificate of employment indefinitely. 

The following details are mandatory and must be present in the COE:

• Employer’s Name and Address – Identifies the issuer.

• Employee’s Full Name – Exactly as recorded.

• Dates of Employment – Start date and, if applicable, end date or “to present.” 

In addition to the basic 3 details, the certificate of employment may contain additional information such as salary, job position or description, or performance notes. While requesting a COE, employees may request these employment details and additional information in their request form. However, the employer is not obligated to include these additional details, such as employee clearances.

COE Vs. Clearance Form Vs. Certification of Service

Beyond the CEO, there are other types of employment documents: 

• Certificate of employment: Confirms employment period and role.

• Certificate of Service: For freelancers, contractors, or project-based workers. This may be useful for contract-based workers in establishing their employment history.

• Clearance Form: Focused on the return of company property and accountabilities, not employment verification. 

Cost of Getting a Certificate Of Employment

An employer is obligated to issue a COE with no fee. It's free under the labour code. Employers may issue a printed COE or offer it in digital format with an e-signature. The mandatory information, such as employee name, employment dates, job title/duties, and additional information, may also be included.

Issuance Timeline

When a current or former employee requests a certificate of employment, it must be issued within three calendar days. The employment status could be resignation, termination, or AWOL, but the mandatory timeline still applies.

Who can issue a Certificate of Employment?

The COE can be issued by

• Employer

• HR

• Authorised officer or signatory

When HR services are offered in contracting setups, the agency or vendor that offers these services is required to issue the COE and not the employer. 

Can an Employer Refuse to Issue a COE?

Employers in the Philippines are legally obligated to issue a Certificate of Employment upon receiving the request. Regardless of the employment status of the employee, it must be issued within 3 calendar days. If an employer refuses to issue a COE, the employee can register as compliant under Article 292 of the Philippine Labor Code and register a complaint with the DOLE labor advisory.

Penalties for Not Issuing a Certificate Of Employment 

Delaying the issuance of the COE beyond 3 calendar days can result in penalties and legal actions against the employer. The employee who didn't receive the COE within 3 calendar days can register a complaint with DOLE. Employers may be penalized and asked to pay fines based on the charges. Employees can file directly with the DOLE.

Why Does an Employee Request a Certificate Of Employment?

The employee may request a COE when they need verification of Employment. It's usually requested in the following scenarios:

• Job Applications: Future potential employers often require a COE to verify the work experience and tenure of the candidate.

• Loans and Credit Applications: Banks and financial institutions typically ask for a COE to confirm employment status and financial stability.

• Visa and Travel Requirements: Embassies use COEs as proof of Employment and intention to return. Including salary and position strengthens visa applications and can also help in financial transactions.

• Government Benefits and Transactions: Government agencies like SSS, Pag-IBIG, and PhilHealth may require COEs to validate employment records for claims or financial obligations.

• Rental Agreements and Background Checks: Landlords and background screening services often require COEs to confirm employment status and income.

• OFW Deployment and Verification: While the Overseas Filipino Worker (OFW) setup typically uses an Overseas Employment Certificate (OEC) for deployment, a COE may support background checks, bank accounts abroad, or embassy requirements.

While COE is proof of tenure or Employment, it's not meant to be a document for making legal claims around employment terms or benefits. By itself, COE isn't an employment relationship, but it's a document verifying it.

Employment Status: When Can an Employee Request a Certificate Of Employment?

An employee can request a COE in the following circumstances:

• During Employment ("to present"): During Employment, an employee can request a COE at any time. This is useful for loans or visa applications.

• Upon separation: After resignation, contract end, or termination, an employee may request immediately to ensure timely processing.

• After AWOL or termination: If an employee is terminated or goes AWOL, COE can still be requested.

Who can Request an Employment Certificate?

Eligible persons who can request for COE are:

• Employees of a company with employment status as current, resigned, terminated, or AWOL.

• Contractual employees

• Project-based workers

• Part-time employees

• Freelancers

• OFW workers

While anyone who works or has worked for an employer is legally allowed to request a COE, there are special situations involved:

AWOL Employees

Employees who are absent without leave are considered AWOL employees, and they are still entitled to receive COE within 3 days. The previous employers can't refuse COE, but they may note that the employee stopped working due to unauthorized absence.

Freelancers/ Independent Contractors 

While they are not strictly employees, freelancers and contract-based workers can request attestation from the client. It's generally called a Certificate of Service (COS), and it's not a COE. The HR department can issue a COS for contractual employees.

Overseas Filipino Workers (OFWs)

Filipino employees working abroad can get a COE from their foreign employer or agency. Philippine Overseas Employment Administration (POEA) and the Department of Migrant Workers (DMW) accept COEs from foreign employers. OFWs must try to get a COE from the employer instead of a recruitment agency to ensure credibility. If the employer doesn't supply a COE, a COS may be requested. Some financial institutions may require notarization or apostille authentication (legalization process to authenticate certificates for countries that are part of the Hague Apostille Convention) for certificates from foreign employers. 

How to Request a Certificate Of Employment for Employment Verification? 

Applying for COE involves a few simple steps:

Contact the HR Department

Reach out to the HR department, immediate supervisor, or administrative officer of the employer. These personnel are legally responsible for processing COE requests.

Request Certificate Of Employment 

Employees can request a COE via email or send a printed letter to their employer. The subject and content should clearly request COE, and if additional details are required, they must be mentioned as well. Maintaining a paper trail is crucial to ensure smooth processing and also to raise disputes if necessary.

While the written request is highly recommended, employees can also verbally request a COE. These are less formal, and employers may overlook verbal requests. Also, when an employee needs to escalate the issue, if the employer refuses or delays issuing the COE, a written request is necessary to file a DOLE complaint.

Clarify Requirements in Certificate Of Employment

The COE must clearly mention the requirements:

• Purpose: Why COE is requested

• Specific Information: What details are required in the COE apart from the mandatory details?

• Deadline: When is the document needed?

• Contact Details: Latest contact information of the employee

Sample COE email:

Track the Processing

Employees must receive a COE from HR or their employer within three calendar days. Tracking and monitoring help identify unnecessary delays. Employees can send a reminder mentioning the legal deadline if it's delayed in larger organizations.

Review the COE

Once the COE is received, reviewing it immediately can help correct mistakes, if any. For errors or misrepresentations, employees can contact HR or the employer once again to correct the errors. Employees may also ask for duplicates, and there is no processing fee involved for the COE. 

Delays or Refusals and How to Handle Them

While employers are legally obligated to issue a certificate of employment, the process may not be smooth for everyone. Here are some common challenges that employees encounter when they ask the COE:

Often, employees who are not currently employed with the employer may face delays in COE issuance. Some employers may connect it with final pay or maliciously refuse after resignation or disciplinary action is taken against the employee. A clear follow-up email can be sent restating the request and mentioning the legal issuance window.

If the employer doesn't respond to the follow-up email and continues to refuse, an employee may have the following options:

• Single Entry Approach (SEnA) through DOLE: File a Request for Assistance (RFA) at your nearest DOLE Field Office either in person or online. This mediation is quick and free, with most cases resolved amicably.

• Labor Complaint via NLRC: Unresolved disputes can be escalated to the National Labor Relations Commission (NLRC). The claim may include an order to issue the COE, lawyer’s fees, moral or exemplary damages, and administrative fines.

• Administrative Sanctions: DOLE labor inspectors can cite non-compliance with advisories, impose sanctions, and require corrective action

• Privacy-Related Claims: If COE is withheld or contains false or defamatory statements about the employee, they may file a complaint with the National Privacy Commission or seek damages via civil court

Takeaway

Getting a Certificate of Employment is a legal right for all employees. Regardless of the employment status, when the employer receives a COE request, they must process it within 3 calendar days. While an employee can verbally make a request for COE, a written request through a printed letter or email is useful to maintain a paper trail. Employers can't refuse to give a COE, and if that happens, employees can escalate the issue to DOLE or NRLC with a written letter.