NON-INTERFERENCE IN THE DISPOSAL OF WAGES
ART. 112. Non-interference in disposal of wages. - No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his
wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from any other person, or otherwise make use of any store or services of such employer or any other person.
Art. 288 (RPC). Other similar coercions; (Compulsory purchase of merchandise and payment of wages by means of tokens.) —XXX force or compel,
directly or indirectly, or shall knowingly permit any laborer or employee employed by him or by such firm or corporation to be forced or compelled, to purchase merchandise or commodities of any kind.
WAGE DEDUCTION
Article 113. Wage deduction. No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees,
except:
(a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;
(b) For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. GR: No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees Except:
1. In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;
2. For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and
3. In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment.
DEDUCTIONS AUTHORIZED BY LAW: 4. Deduction for value of meals and other facilities;
5. In cases where the employee is insured with his consent by the employer, deductions for the amount paid by said employer as premiums on the insurance.
6. In cases where the right of the employees or his union to checkoff has been recognized by the employer or authorized in writing by the individual employee concerned.
7. In cases where the employee is indebted to the employer, where such indebtedness has become due and demandable. (A1706NCC)
8. In court awards, wages may be the subject of execution or attachment, but only for debts incurred for food, shelter, clothing and medical attendance. (A1708NCC)
9. Withholding tax.
10. Salary deductions of a member of a legally established cooperative. 11. SSS, medicare and Pag-ibig contributions.
DEPOSITS FOR LOSS/DAMAGE
ART. 114. Deposits for loss or damage. - No employer shall require his worker to make deposits from which deductions shall be made for
the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer, except when the employer is engaged in such trades, occupations or business where the practice of making deductions or requiring deposits is a recognized one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations.
GR: No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made. EXCEPT: The employee has been heard thereon, and his responsibility has been clearly shown.
Article 115. Limitations. No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless
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Article 116. Withholding of wages and kickbacks prohibited. – It shall be unlawful for any person, directly or indirectly, to withhold any
amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the worker’s consent.
NOTES: An employer cannot simply refuse to pay the wages or benefits of its employee because he has either defaulted in paying a loan guaranteed by his employer; or violated their memorandum of agreement; or failed to render an accounting of his employer’s property.
DEDUCTION TO ENSURE EMPLOYMENT
Article 117. Deduction to ensure employment. – It shall be unlawful to make any deduction from the wages of any employee for the
benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in employment.
NOTES: The practice of a security agency of deducting 25% from the salary of its security guards as the agency’s share in procuring job replacement for the guards is a violation of this provision. Even though the guards agreed to the arrangement, it cannot be given any effect because it is contrary to law and public policy.
RETALIATORY MEASURES
Article 118. Retaliatory measures. – It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge or in
any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings.
Read Azucena p. 382 for more comments FALSE REPORTING
Article 119. False reporting. – It shall be unlawful for any person to make any statement, report, or record filed or kept pursuant to the
provisions of this Code knowing such statement, report or record to be false in any material respect.
WITHOLDING OF WAGES (FROM THE CIVIL CODE) Art. 1705. The laborer's wages shall be paid in legal currency.
Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the employer. (also known as compensation under civil law) Art. 1707. The laborer’s wages shall be a lien on the goods manufactured or the work done.
Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance.
Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging to the laborer.
PRINCIPLE OF ‘NON-DIMINUTION OF BENEFITS
ART. 100. Prohibition against elimination or diminution of benefits. - Nothing in this Book shall be construed to eliminate or in any way
diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
it essentially means that benefits being given to employees cannot be taken back or reduced unilaterally by the em¬ployer because the benefit has become part of the employment con¬tract, written or unwritten.
THE RULE AGAINST DIMINUTION OF SUPPLEMENTS OR BENEFITS IS APPLICABLE IF IT IS SHOWN THAT:
The grant of the benefit is based on an express policy or has ripened into a practice over a long period of time; The practice is consistent and deliberate.
The practice is not due to error in the construction or application of a doubtful or difficult question of law. The diminution or discontinuance isdone unilaterally by the employer.
ART. 127. Non-diminution of benefits. - No wage order issued by any regional board shall provide for wage rates lower than the statutory
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