Re: Deductions from Wages
It is clearly stated in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except in cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment, among others.
The Omnibus Rules Implementing the Labor Code, similarly, provides that deductions from the wages of the employees may be made by the employer when such deductions are authorized by law, or when the deductions are with the written authorization of the employees for payment to a third person. 27 Therefore, any 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, as well as the Omnibus Rules implementing it.
Further, Article 11628 of the Labor Code clearly provides that it is unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker without the worker's consent.
In the instant case, petitioners confirmed the alleged deductions but reasoned that the same were due to the penalties they imposed for deliveries outside the delivery hours, cell phone plans, bad orders and liquidation shortage. This act is a clear violation of the labor code since there was no written conformity coming from the respondents regarding the deduction. Hence, reimbursement of these illegal deductions should be returned to the respondents.
RATIONALE
In Niña Jewelry Manufacturing of Metal Arts, Inc. v. Montecillo,35 the Court ruled that:
[T]he petitioners should first establish that the making of deductions from the salaries is authorized by law, or regulations issued by the Secretary of Labor. Further, the posting of cash bonds should be proven as a recognized practice in the jewelry manufacturing business, or alternatively, the petitioners should seek for the determination by the Secretary of Labor through the issuance of appropriate rules and regulations that the policy the former seeks to implement is necessary or desirable in the conduct of business. The petitioners failed in this respect. It bears stressing that without proofs that requiring deposits and effecting deductions are recognized practices, or without securing the Secretary of Labor's determination of the necessity or desirability of the same, the imposition of new policies relative to deductions and deposits can be made subject to abuse by the employers. This is not what the law intends.*
RULING |
E PLOYEES are entitled to
reimbursements of deductions
⚖️ REYES, J. JR., J.
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RELATED |
FOOTNOTES
26 Article 113. Wage Deduction. — No employer, in his own behalf or in behalf of any person, shall make any deduction from 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
In cases where the employer is authorized by law or regulations issued by Secretary of Labor.
27 Rule VIII, Section 10. Deductions from the wages of the employees may be made by the employer in any of the following cases:
(a) When the deductions are authorized by law, including deductions for the insurance premiums advanced by the employer in behalf of the employee as well as union dues adhere the right to check-off has been recognized by the employer or authorized in writing by the individual employee himself;
(b) When the deductions are with the written authorization of the employees for payment to a third person and the employer agrees to do so, provided that the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction.
28 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.
*Citing in the case of BLUER THAN BLUE JOINT VENTURES COMPANY/MARY ANN DELA VEGA, Petitioners, G.R. No. 192582 April 7, 2014
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