Important laws on salaries and wages.ppt 1

Wages System in the Philippines superseded the Magna Carta of Labor of the Philippines expressly enumerates a number of conditions and limitations with respect to payment of wages in the Philippines.

A. Forms of PaymentB. Time of Payment C. Place of payment

Payment of wages by bank, check, postal checks or money orders is allowed where such manner of wage payment is customary on the date of effectivity of the labor code, where it is stipulated in a collective bargaining agreement, or where all the following conditions are met:

1. There is a bank or other facility for encashment within a radius of one kilometre from the workplace.

2. The employer, or any of his agents or representatives, does not receive any peculiarly benefit directly or indirectly from the arrangement.

3. The employees are given reasonable time during banking hours to withdraw their

wages from the bank which should be considered as compensable hours worked if done during working hours.

4. Payments by check is with the written consent of the employees concerned if there is a collective bargaining agreement authorizing the payment of wages by bank checks.

1. The payments are made at intervals not exceeding sixteen days. In proportion to the amount of work completed.

2. The final settlement is made upon completion of the work.

Note: No employer shall make payment with less frequency than once a month.

2. In cases of force majeure rendering such payments impossible or any other

circumstances to be determined by the Sec. of Labor and Employment in appropriate regulations, in which case the worker may be paid through another person under written authority given by the worker for the purpose .

1. When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment threat impossible.

2. When the employer provides free transportation to the employees back and forth

Note: Under analogous circumstances; provided that the time spent by the employees in collecting their wages shall be considered as compensable hours of worked.

3. No employer shall pay his employees in any bar, night or day club, drinking establishment, message clinic, dance hall or any other similar places where games are played with stakes of money or things representing money except in case of persons employed in said places.

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 the employer or from any other person or otherwise make use of any store or services of such employee or any person.

No employer, in his own behalf or in behalf of any person, shall make any deduction from the wage of his employees except;

1. In case where the worker is insured with his consent the employer, and the deduction is to recompense the employer for the amount paid by him as a premium on the insurance.

2. 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;

3. In cases where the employer is authorized by law or regulations by the Secretary of Labor and Employment.

Where the employer is engaged in a trade, occupation or business where the practice of making deductions or requiring deposits is recognized, to answer for the reimbursement of loss, or damage to tools, materials or equipment supplied by the employer to the employees, they employer may make wage deductions or require the employee to make deposits from which deductions shall be made.

Likewise, it is 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 dismissal or any other means whatsoever without the worker’s consent.

Every employer shall be jointly and severally liable with his contractor or subcontractor for the unpaid wages of the employees of the latter.

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 filled any complaint or instituted any proceedings under this title or has testified or is about to testify in such proceedings.