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Labor Lien Release Form

Labor Lien Release Form Template for Philippines

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Key Requirements PROMPT example:

Labor Lien Release Form

"Need a Labor Lien Release Form for our Manila construction project, releasing liens for 25 workers who completed their services in January 2025, with total claims amounting to ₱500,000, including provisions for partial payments over 3 months."

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Document background
The Labor Lien Release Form is a crucial document in Philippine employment and construction law, used when workers, contractors, or employees need to formally release their right to claim against property or assets after receiving payment for their services. This document becomes necessary when resolving labor disputes, completing construction projects, or finalizing employment settlements. The form must comply with the Labor Code of the Philippines and related DOLE regulations, particularly regarding wage claims and workers' rights. It serves as legal protection for both the employer/property owner and the worker, documenting that all obligations have been satisfied. The Labor Lien Release Form typically includes detailed information about the original claim, payment confirmation, and explicit release language, and must be properly notarized to be legally enforceable in Philippine courts.
Suggested Sections

1. Parties: Identification of the Lien Holder (worker/employee/contractor) and the Party Being Released (employer/property owner)

2. Background: Details of the original labor claim, including dates of employment, nature of work performed, and the amount of the original lien

3. Definitions: Key terms used in the document including 'Lien', 'Labor Claim', 'Released Party', and 'Subject Property'

4. Release Declaration: Express statement of release of all claims and liens related to the specified labor or services

5. Consideration: Statement of the payment or other consideration received in exchange for the release

6. Acknowledgment of Payment: Formal acknowledgment that payment has been received and accepted as full satisfaction

7. Warranty: Worker's warranty that they have not assigned or transferred the lien rights to any other party

8. Execution: Signature block with notarization requirements and date of execution

Optional Sections

1. Property Description: Detailed description of the property where work was performed - required only for construction-related labor liens

2. Conditional Release Provisions: Used when the release is conditional upon receipt of payment rather than immediate

3. Partial Release Clause: Required when releasing only a portion of the total labor claim

4. Indemnification: Optional protection for the released party against future claims - commonly included in higher-value releases

5. Governing Law: While Philippine law is implied, this section may be included for additional clarity

6. Language Declaration: Required only if the form is bilingual or if the worker's primary language is not English or Filipino

Suggested Schedules

1. Schedule A - Payment Details: Itemized breakdown of payments made and remaining balance (if any)

2. Schedule B - Original Lien Documentation: Copies of the original lien filing or labor claim documents

3. Schedule C - Property Documents: Required for construction liens - contains property details and work location

4. Appendix 1 - Proof of Identity: Copies of valid government IDs of the signing parties

5. Appendix 2 - Authority Documents: Required if either party is signing through a representative

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Relevant Industries

Construction

Manufacturing

Real Estate Development

Infrastructure

Industrial Services

Mining

Shipping and Maritime

Agriculture

General Contracting

Facilities Management

Relevant Teams

Human Resources

Legal

Finance

Payroll

Operations

Compliance

Risk Management

Project Management

Construction Management

Labor Relations

Relevant Roles

Human Resources Manager

Legal Counsel

Payroll Manager

Construction Project Manager

Site Supervisor

Labor Relations Officer

Compliance Officer

Contract Administrator

Finance Director

Property Manager

General Contractor

Employment Law Attorney

Risk Management Officer

Claims Administrator

Operations Manager

Industries
Labor Code of the Philippines (Presidential Decree No. 442): Primary legislation governing employment relationships, workers' rights, wages, and benefits in the Philippines. Particularly relevant for understanding the basis of labor claims and wage-related liens.
Civil Code of the Philippines (Republic Act No. 386): Provides the legal framework for contracts, obligations, and releases. Articles 1231-1236 specifically deal with the extinguishment of obligations, which is relevant for lien releases.
DOLE Department Order No. 174-17: Implements regulations regarding employment arrangements and contractual relationships, which may affect how liens are created and released.
Republic Act No. 6971 (Productivity Incentives Act): Relevant for understanding potential additional compensation claims that might be subject to liens and subsequent releases.
Construction Industry Resolution No. 4, Series of 2020: Provides specific guidelines for construction-related labor claims and liens, including the process for releasing such liens.
Rules of Procedure of the National Labor Relations Commission: Outlines the procedures for filing and resolving labor disputes, including the process for recording and releasing labor liens.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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