WHAT ARE THE PROHIBITIONS OF THE LABOR CODE REGARDING WAGES IN THE PHILIPPINES?

Philippine Labor Code Prohibitions Regarding Wages



WHAT ARE THE PROHIBITIONS OF THE LABOR CODE

REGARDING WAGES IN THE PHILIPPINES?

Wages earned by an employee are given special protection under the Labor Code of the Philippines in recognition of its importance in the continued survival of both the employee and his or her family. In a country where majority of its citizens live in what can only be considered as “hand-to-mouth” existence, the Philippine Legislature has deemed it necessary to provide employees who earn barely enough adequate protection, by ensuring that their wages shall be received in full and free from any prohibited deductions.

The Labor Code begins by prohibiting an employer from limiting or otherwise interfering with the freedom of any employee to dispose of his wages. The employer 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. In fact, criminal liability may ensue since this act of the employer is punished under the Revised Penal Code.

Moreover, an employer is proscribed from making any deduction from the wages of his or her employees. He or she may only make deductions in cases where the worker is insured and the deduction made is to recompense the employer for the amount paid by him as premium on the insurance; or for union dues; or 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; or where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. This prohibition on deduction extends to the practice of making any deduction from the wages of an employee for the benefit of the employer or his representative as consideration of a promise of employment or retention in employment.

An employer is also prohibited from requiring his or her worker to make deposits from which deductions shall be made for the reimbursement of losses or damages to tools, materials, or equipment supplied by the employer, except when the employer is engaged in such trades, occupations or businesses where said practice is a recognized one; or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations. In such situations, the employee must first be accorded the right to be heard and his or her responsibility for the damage has been clearly shown before any deduction shall take effect.

It shall also 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. This prohibition applies not only to the employer but also against other persons.

Lastly, 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 or has testified or is about to testify in proceedings concerning violations of the prohibitions on wages.