Dear PAO,

Is it really necessary to have an extrajudicial settlement of estate before my father’s last pay can be released to us, his heirs? My father worked for a call center company, and he passed away because of an accident. We are left with debts from his hospitalization expenses, and his last pay from the company will really help us in settling some of these debts. However, the company has been giving us one excuse after another and now claims we must complete an extrajudicial settlement first. Is that correct?

Biancaxx

Dear Biancaxx,

Generally, the property, rights, and obligations of a deceased person are transmitted to his or her heirs, through his or her death, by virtue of a will or by operation of law, in line with Article 774 of the New Civil Code of the Philippines. One of the ways to proceed with such transmission is through the settlement of the estate of the decedent.

However, it is expressly provided under Article 105 of the Labor Code of the Philippines that the wages of a deceased employee may be paid to his or her heirs without the need to go through intestate proceedings; rather, upon submission of the appropriate affidavit. To be precise, the law states:

“ART. 105. Direct payment of wages. – Wages shall be paid directly to the workers to whom they are due, except:

“(a) x x x

“(b) Where the worker has died, in which case, the employer may pay the wages of the deceased worker to the heirs of the latter without the necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be executed on his behalf by his natural guardian or next-of-kin. The affidavit shall be presented to the employer who shall make payment through the Secretary of Labor and Employment or his representative. The representative of the Secretary of Labor and Employment shall act as referee in dividing the amount paid among the heirs. The payment of wages under this Article shall absolve the employer of any further liability with respect to the amount paid.” (Underlining supplied)

Accordingly, it is not necessary for you and your co-heirs to go through an extrajudicial settlement of estate if only to claim the salary of your late father from his former employer. What is essential, if you are all of legal age, is the execution of an affidavit attesting your relationship to your late father as well as the fact that you are his heirs, to the exclusion of all other persons, and submitting the same to said employer so that you can insist upon your claim for his last salary. If there is a minor heir among you, the affidavit must be executed on the minor’s behalf by his or her natural guardian or any of you who is his or her next-of-kin.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].