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Question
Daniela Cortez resigns from Orion Textiles, Inc. after 8 years. The company has a clearance policy requiring the employee to obtain clearance from HR, Security, and Finance before the release of terminal pay (final wages, 13th month pay, and separation benefits). Daniela returns all company property and has no outstanding loans. The firm withholds clearance and thus the terminal pay, citing an ongoing payroll audit from one year ago that allegedly involved Daniela, though the prior audit found no fault on her part. The company keeps Daniela’s terminal pay for 40 days pending clearance. Daniela files a complaint with the NLRC alleging unlawful withholding of wages and unlawful practice in relation to the clearance policy. (a) Identify the central doctrine governing the use of clearance in this scenario. (b) Distinguish when a clearance-based withholding of wages is lawful versus unlawful, applying to Daniela’s facts. (c) What is the likely outcome and remedy under Philippine law?