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Employer has no right to withhold pay of employee



Dear PAO,
I tendered my resignation last June 06, 2012, the effectivity of which is July 31, 2012. However, my employer requested me to render three more days of work after the effectivity of my resignation to give my replacement more time to adjust to his work.

I complied with his request but I wasn’t able to report to work on the third day due to the heavy typhoon at that time. In fact, the company even declared a work suspension on that day. Can my employer lawfully withhold my wage because of my failure to report on my last day of work?
MM

Dear MM,
Wage is defined as the employee’s remuneration or earning paid by his employer for work done or to be done or for services rendered or to be rendered. It includes the fair and reasonable value, as determined by the Secretary of Labor, of board, lodging or other facilities customarily furnished by the employer to the employee (Article 97, Labor Code of the Philippines). Simply put, it is the consideration which the laborer should rightfully get for every second he spends at work, which should be paid to him in full and without delay.

While an employer has the right to regulate all aspects of employment, such as the freedom to prescribe work assignments, working methods, processes to be followed, regulation regarding transfer of employees, lay-off and discipline, he does not have the right to withhold the salary or wages of his employees without the latter’s consent (SHS Perforated Materials, Inc. vs. Manuel F. Diaz, GR No. 185814, October 13, 2010). To do so would be violative of Article 116 of the Labor Code of the Philippines, to wit:

“ART. 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.”

Furthermore, the Supreme Court has also held that the withholding of an employee’s wages by an employer may only be allowed in the form of wage deductions under the circumstances provided in Article 113 of the Labor Code: (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 (SHS Perforated Materials, Inc. vs. Manuel F. Diaz, GR No. 185814, October 13, 2010).

You did not commit any violation in not reporting for work especially when the company itself has ordered a work suspension on that day due to the heavy typhoon. Hence, in the absence of any of the exceptions stated in Article 113 of the Labor Code of the Philippines, your employer cannot lawfully withhold the wage due to you for the days that you suffered to work.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same.

Our opinion may vary when other facts are changed or elaborated.

Dear PAO

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