How long is the prescriptive period for filing money claims arising from employer-employee relations?

All money claims that arise from an employer-employee relationship must be filed within a specific timeframe prescribed by law. If a worker has a claim for unpaid wages or benefits, they only have a maximum of three years to institute their claim. This three-year prescriptive period begins to run exactly from the time the cause of action accrued. If the employee fails to file the claim within this period, they shall be forever barred from recovering the amount. This prescriptive period is explicitly stated in Article 306 Labor Code of the Philippines. “ART. 306. Money Claims. – All money claims arising from employer-employee relations accruing during the effectivity of this Code shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred. All money claims accruing prior to the effectivity of this Code shall be filed with the appropriate entities established under this Code within one (1) year from the date of effectivity, and shall be processed or determined in accordance with the implementing rules and regulations of the Code; otherwise, they shall be forever barred.” 02-Jun-26

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