Labor Standards - 5th Session

8/3/2019 Labor Standards - 5th Session

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Forms of Payment

Article 102


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Art. 102. Forms of payment

General Rule

Wages shall be paid in legal tender.

No employer shall pay the wages of an employee by means ofpromissory notes, vouchers, coupons, tokens, tickets, chits, or anyobject other than legal tender, even when expressly requested by

the employee.


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Payment by check

Payment of wages by bank checks, postal checks or money orders isallowed where such manner of wage payment is

(1) customary on the date of the effectivity of the Code

(2) stipulated in a collective agreement,

(3) where all of the following conditions are met:


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Conditions

(a) There is a bank or other facility for encashment within a radius ofone (1) kilometer from the workplace;

(b) The employer or any of his agents or representatives does notreceive any pecuniary benefit directly or indirectly from thearrangement;

(c) The employees are given reasonable time during banking hours to

withdraw their wages from the bank which time shall be consideredas compensable hours worked if done during working hours; and

(d) The payment by check is with the written consent of theemployees concerned if there is no collective agreement authorizingthe payment of wages by bank checks.


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In case of payment of wages by results involving work which cannotbe finished in two (2) weeks, payment shall be made at intervals notexceeding sixteen days in proportion to the amount of workcompleted.

Final settlement shall be made immediately upon completion of thework.


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Omnibus Rules Implementing the Labor Code (Book 3, Rule8, Section 4)

SECTION 4. Place of payment. As a general rule, the place of paymentshall be at or near the place of undertaking. Payment in a place other thanthe work place shall be permissible only under the following circumstances:

(a) When payment cannot be effected at or near the place of work by reasonof the deterioration of peace and order conditions, or by reason of actual orimpending emergencies caused by fire, flood, epidemic or other calamity

rendering payment thereat impossible; (b) When the employer provides free transportation to the employees back

and forth; and

(c) Under any other analogous circumstances; Provided, That the time spentby the employees in collecting their wages shall be considered ascompensable hours worked;

(d) No employer shall pay his employees in any bar, night or day club,drinking establishment, massage clinic, dance hall, or other similar places orin places where games are played with stakes of money or thingsrepresenting money except in the case of persons employed in said places.


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Labor Advisory on Payment of Salaries throughAutomated Teller Machines (ATMs)

A. Payment through automated teller machine (ATM) of banks provided the followingconditions are met:

1. the ATM system of payment is with the written consent of the employees concerned;

2. The employees are given reasonable time to withdraw their wages from the bank facilitywhich time, if done during working hours, shall be considered compensable hours worked;

3. The system shall allow workers to receive their wages within the period or frequency andin the amount prescribed under the Labor Code, as amended; chanrobles virtual law library

4. There is a bank or ATM facility within a radius of one (1) kilometer to the place of work;

5. Upon request of the concerned employee/s, the employer shall issue a record of paymentof wages, benefits and deductions for a particular period;

6. There shall be n additional expenses and no diminution of benefits and privileges as a

result of the ATM system of payment;

7. The employer shall assume responsibility in case the wage protection provisions of lawand regulations are not complied with under the arrangement. (Explanatory Bulletin issuedby DOLE Secretary Leonardo Quisumbing dated November 25, 1996).


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R.A. 6727 (Section 19, Chapter 1)payment of wages through a bank

Upon written petition of the majority of theworkers and employees concerned, all privateestablishments, companies, businesses andother entities with at least twenty-five workersand located within one kilometer radius to acommercial, savings, or rural bank, shall pay thewages and other benefits of their workers throughany of said banks within the period and in the

manner and form prescribed under the LaborCode as amended.


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Unpaid Benefits

The prescribed wage rates which theemployer failed to pay upon the effectivity ofa wage order, exclusive of other wage-

related benefits.


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Section 12

RA 6727 RA 8188

As to whom the law

applies

any person, corporation,

trust, firm, partnership,association or entity whichrefuses or fails to pay anyof the prescribedincreases or adjustmentsin the wage rates

any person, corporation,

trust, firm, partnership,association or entity whichrefuses or fails to pay anyof the prescribedincreases or adjustmentsin the wage rates

As to the amount of fine not exceeding twenty fivethousand pesos(P25,000.00)

not less than Twenty-fivethousand pesos(P25,000) nor morethan One hundredthousand pesos

(P100,000)As to imprisonment not less than one (1) year not less than two (2)


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Section 12

RA 6727 RA 8188

As violation by an entity penalty of imprisonmentimposed on the entity'sresponsible officers,including, but not limitedto, the president, vice-president, chief executive

officer, general manager,managing director orpartner

penalty of imprisonmentimposed upon the entity'sresponsible officers,including, but not limitedto, the president, vice-president, chief executive

officer, general manager,managing director orpartner


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Direct Payment of Wages

Article 105


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Direct payment of Wages

Wages shall be paid directly to workers to whom they are

due, except:

a.In cases of force majeure rendering such payment

impossible or under other special circumstances to be

determined by the Secretary of Labor and Employment in

appropriate regulations

b.Where the worker has died


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Section 5. Direct payment of wagesImplementing Rules (Book III, Rule VII)

Payment of wages shall be made direct to the employee

entitled except in the following cases:

a.Where the employer is authorized in writing by the

employee to pay his wages to a member of a family

b.Where payment to another person is authorized by

existing law

c.In case ofdeath of employee


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Article 106

Paragraph 1: Mode of Payment

Whenever an employer enters into a contract with anotherperson for the performance of the formers work, the employees of the

contractor and of the latters subcontractor, if any, shall be paid inaccordance with the provisions of this Code.

Paragraph 2: Liabilities in case of Non-Payment

In the event that the contractor or subcontractor fails to pay the

wages of his employees in accordance with this Code, the employershall be jointly and severally liable with his contractor or subcontractorto such employees to the extent of the work performed under the

contract, in the same manner and extent that he is liable to employeesdirectly employed by him.


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Article 106

Paragraph 4: Labor-Only Contractors

There is labor-only contracting wherethe person supplying workers to an employerdoes not have substantial capital orinvestment in the form of tools, equipment,machineries, work premises, among others,and the workers recruited and placed bysuch person are performing activities which

are directly related to the principal business


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Article 111

Attorneys fees:

(a)In cases of unlawful withholding of wages,the culpable party may be assessedattorneys fees equivalent to ten percent of

the amount of wages recovered.

(b)It shall be unlawful for any person todemand or accept, in any judicial oradministrative proceedings for the recovery

of wages, attorneys fees which exceed ten


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Rule VIII, Section 11

Attorneys fees

Attorneys fees in any judicial oradministrative proceedings for the recoveryof wages shall not exceed 10 percent of theamount awarded. The fees may be deducted

from the total amount due the winning party.

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Labor Standards - 5th Session

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