PROHIBITIONS REGARDING WAGES

Chapter IV

ARTICLE 112.
NON INTERFERENCE IN DISPOSAL OF WAGES
(right of an employee to freely dispose of his wages)

1.) No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages.

2.) He shall not in any manner FOC his employees to: (PM) a. Purchase merchandise, commodities, or other properties from the employer or from any other person; b. Make use of any store or services of such employer or any person.

Article 113.
WAGE DEDUCTIONS

GENERAL RULE: No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees.

Purpose:
to protect the employee from unwarranted practices that diminish his compensation without his KC

LAWFUL DEDUCTIONS

2. Union dues 3. Agency Fees 4. Special assessments or extra ordinary fees

(check off recognized or written authorization) (does not require a check-off authorization) (requisites: WMI)

5. Fair and reasonable value of the facilities 6. Obligations of an employee to a third person 7. Cost of lost or damaged TEM
(furnished and voluntarily accepted) Executes written authorization and employer agrees) recognized)

(practice

8. Due and demandable debt of the employee to his employer

9. Deductions made in compliance with writs of execution or attachment

Employees share in the premium contributions to the SSS

Employees share in the premium contributions to the National Health Insurance Program

Employees contribution to the Home Development Mutual Fund

DEDUCTIONS FOR ABSENCES OR TARDINESS

No work, no pay.

DEDUCTIONS FOR COSTS OF UNIFORMS

If required to wear, not proper to deduct the cost, even if employee executes a written authorization.

 REDUCTION OF WORKDAYS  REDUCTION of Wage/ ALLOWANCES

(in the absence of an agreement)

CHECK OFF OF UNION DUES (co-terminus)

May be enforced: (CA) 1. With the consent of the employer; 2. By authority in writing by the individual employees.

REQUISITES OF A VALID SPECIAL ASSESSMENTS OR OTHER EXTRAORDINARY EXPENSES: (WMI)

1. Written resolution 2. Minutes of the meeting; 3. Individual written check off authorization.

(by the majority of all the members

(recorded and attested)

Strict compliance with the aforesaid requirements is necessary because these will diminish the compensation of the union members.

Palacol v. Ferrer-Calleja 182 SCRA 710

Even assuming that the special assessment was validly levied, a withdrawal of individual authorization is equivalent to no authorization at all.

CHECK OFF OF ATTORNEY S FEES OR NEGOTIATION FEES

BPI EMPLOYEES UNION ALU V. NLRC 171 SCRA 556

Check-off of Attorney s fees or negotiation fees is prohibited only when it is effected through forced contributions from the workers from their own funds.

ARTICLE 114.
DEPOSITS FOR LOSS OR DAMAGE

GENERAL RULE:
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.

EXCEPTIONS:
1. When the employer is engaged in such TOB or where the practice of making deductions or requiring deposits is a recognized one; or 1. When it is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations.

ARTICLE 115.
LIMITATIONS

CONDITIONS FOR EFFECTING DEDUCTIONS FROM THE DEPOSITS (ROF20)

1. That the employee is clearly shown to be responsible for the loss and damages. 1. Given the reasonable opportunity to show cause why deduction should not be made.

3. Fair and reasonable and shall not exceed the actual loss or damage. 4. Does not exceed 20% of the employees wages in a week.

ARTICLE 116.
WITHHOLDING OF WAGES AND KICKBACKS PROHIBITED (Directly or indirectly)

ACTS PROHIBITED BY THIS PROVISION

1. Withholding any amount from the wages of a worker. 2. Inducing an employee to give up any part of his wages by FITS or by any other means without the workers consent.

LAWFUL WITHHOLDING
1. To set-off an employees due and demandable debt to the employer, 2. To comply with writs of execution or attachment against the employee for debts incurred for food, shelter, clothing and medical attendance.

ARTICLE 117.
DEDUCTION TO ENSURE EMPLOYMENT

SCOPE OF THE PROHIBITION

This article prohibits deduction from the wages of an employee as consideration for: Promise of employment; Retention of employment.

ARTICLE 118.
RETALIATORY MEASURES

It shall be unlawful for an employer to (R2D2)

1. 2. 3. 4. Refuse to pay; or Reduce the wages and benefits; or Discharge, or Discriminate (in any manner) against the employee who has (FITa) filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings.

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.

RECORDS WHICH AN EMPLOYER IS REQUIRED TO KEEP:

1. Payrolls (LARAoDA)
Length of time to be paid Amount due for regular work Rate of pay per month, week, day, or hours, piece, etc. Amount due for over time work Deductions made from the wages Amount actually paid

2. Time Records
a. b. c. d.

(bearing signature/thumbmark)

Bundy clock Time keeper Individual daily time record bio

(log the arrrival and departure)

3. Record of attendance

executive s

daily

4. Records of Workers Paid by Results

 the employer shall keep and maintain their production records showing their daily output, gross earning and the actual number of working hours.

Where Should the Records be Kept?

- In or about the premises of the work place.
*Records should be preserved for at least 3 years from the date of the last entry.