Requisites of Check-Off; Payment of Special Assessment | Rights and Conditions of Membership | LABOR RELATIONS

Comprehensive Discussion on Requisites of Check-Off and Payment of Special Assessment Under Philippine Labor Law

I. Legal Framework and Governing Provisions
In the Philippine labor law context, particularly under Book V of the Labor Code and its Implementing Rules, the matter of union dues, special assessments, and the mechanism of check-off is strictly regulated to protect the rights and interests of union members. These provisions are rooted in ensuring democratic governance within labor unions, transparency in their financial dealings, and the protection of individual workers from unauthorized or arbitrary deductions from their wages.

Key legal references include:

• Labor Code of the Philippines (Presidential Decree No. 442, as amended), specifically the provisions formerly found in Article 241 (now renumbered under the Revised Labor Code) dealing with the rights and conditions of union membership.
• Implementing Rules and Regulations of the Labor Code, particularly those issued by the Department of Labor and Employment (DOLE).
• Jurisprudence of the Supreme Court of the Philippines, which has elaborated on the stringent requirements for valid union check-offs and special assessments.

II. Definition of Terms

1. Check-Off: Check-off refers to the method by which an employer, upon proper authority, deducts union dues or assessments from the wages of employees who are union members and remits these directly to the union. This is essentially a payroll deduction scheme that streamlines collection of union funds.

2. Special Assessment: A special assessment is an amount levied by a union on its members that is distinct from and usually in addition to the regular membership dues. Special assessments are often imposed for a particular and exceptional purpose—for example, raising funds for a strike, acquiring union property, or financing union-sponsored activities or services.

III. Purpose of Check-Off and Special Assessments
The rationale behind allowing check-offs and special assessments is multifaceted:

1. Union Security and Financial Stability: Regular dues and special assessments help maintain the union’s financial capability to serve its members effectively, support collective bargaining activities, and finance programs that benefit the membership.
2. Administrative Efficiency: Check-off arrangements simplify the process of dues collection, providing a stable and predictable funding mechanism for the union.

IV. Requisites for a Valid Check-Off
Under Philippine law, especially as elucidated by jurisprudence (e.g., Angat Labor Union vs. Court of Industrial Relations, and similar cases), the validity of a check-off for union dues and assessments hinges on strict compliance with several substantive and procedural requirements. These requirements arise primarily from the constitutional principle that wages are personal entitlements of workers and cannot be diminished or disposed of without their informed and voluntary consent.

1. Written Authorization by the Employee:

   • Each individual member must voluntarily sign a written authorization specifying the amount to be deducted and the purpose of the deduction.
   • The authorization must be clear, unequivocal, and not merely a blanket or vague consent. It must explicitly state that the member agrees to the deduction of union dues and/or special assessments from their wages.

2. Purpose Must be Lawful and Clearly Explained:

   • The union must ensure that the intended use of the funds collected through check-off is legitimate, germane to the union’s activities, and in accordance with its constitution and by-laws.
   • The employee, when signing the authorization, must be informed of the specific reason or project for which the special assessment is imposed.

3. Compliance with the Union’s Constitution and By-Laws:

   • The manner of imposing and collecting union dues or special assessments must be in strict conformity with the union’s own governing rules. Typically, the union’s constitution or by-laws will detail how much can be collected, the intervals of collection, and the internal procedures required to authorize such collections.

4. Procedural Regularity:

   • Before a check-off of a special assessment can be validly enforced, the union must comply with the procedural requirements set forth by law. This includes conducting a general membership meeting with proper notice and quorum, and securing the required vote or resolution to impose the assessment.

V. Additional Requisites for the Payment of Special Assessment
Apart from the general conditions governing check-offs, special assessments are subject to even more stringent procedural requirements. This is because special assessments are extraordinary impositions over and above regular dues.

1. Approval by a Majority of the Union Members in a Meeting Duly Called for the Purpose:

   • The Labor Code emphasizes democratic self-governance within unions. Thus, any special assessment must be ratified through a general membership meeting called specifically to discuss and approve such an assessment.
   • There must be adequate and timely notice to all members regarding the scheduled meeting, clearly stating the agenda and the proposed assessment.

2. Secret Ballot Requirement:

   • Philippine jurisprudence has consistently affirmed the requirement of a secret ballot to ensure that the decision-making process is free, democratic, and devoid of intimidation.
   • The result of the voting must show that a majority of all the members in good standing are in favor of the special assessment.

3. Detailed Notice to Members:

   • Union members must be adequately informed in writing not only of the time and place of the meeting but also of the nature, amount, and purpose of the proposed special assessment.
   • Proper minutes of the meeting must be recorded, and these minutes should reflect compliance with all legal requirements, including the number of attendees, the voting process, and the results.

4. Strict Interpretation in Favor of Labor Rights:

   • In case of doubt, the courts have consistently ruled that the union’s compliance with the prerequisites for a special assessment must be strictly interpreted. Any ambiguity or deficiency in the procedural or substantive requirements will generally result in the invalidation of the assessment and the check-off.

VI. Limitations and Prohibitions

1. No Automatic Deduction Without Compliance:

   • Even if a union’s collective bargaining agreement (CBA) contains a union security clause or a provision allowing deductions, special assessments cannot be automatically imposed. The procedural safeguards detailed above must still be strictly followed.

2. No Coercion or Undue Pressure:

   • Union officials cannot use intimidation, coercion, or any form of undue influence to secure members’ consent to the special assessment.
   • If a member withdraws authorization or disputes the validity of the check-off due to lack of compliance with legal requisites, the union cannot continue to enforce the deduction without risking legal liability.

3. Constitutional and Statutory Constraints:

   • The right to wages is constitutionally protected, and any deduction from wages without proper authorization or compliance with legal requirements may be considered illegal and actionable.

VII. Jurisprudential Guidance
Philippine Supreme Court decisions have served as consistent reminders to unions and employers that compliance with the legal requisites is mandatory. For example, the Supreme Court has invalidated special assessments where the union failed to present proof of proper notice, an approved resolution from a majority of union members via secret ballot, or individual written authorizations for deductions. The Court insists that these requisites safeguard the workers’ constitutional rights and the principle of voluntary unionism.

VIII. Practical Implications
For unions, careful adherence to the statutory and internal requirements for check-offs and special assessments is non-negotiable. Unions must:

• Document every step of the authorization process.
• Maintain a clear record of notices, meeting attendance sheets, minutes of the meeting, voting results, and individual written authorizations.
• Ensure that the purpose of the assessment is justified, lawful, and well-communicated.

For employers, compliance involves verifying that the union has met all legal requirements before implementing deductions. Should the employer deduct union dues or special assessments without proper proof of compliance, the employer may be held jointly liable for illegal deductions, giving rise to potential administrative or civil liabilities.

IX. Conclusion
The requisites for check-off and payment of special assessments under Philippine labor law are deliberately stringent to protect workers’ rights, ensure democratic processes within unions, and maintain financial transparency and accountability. The primary principle is that no deduction from wages can occur without the worker’s clear, informed, and voluntary consent, reinforced by proper union procedures, majority approval, secret balloting for special assessments, and compliance with statutory and internal regulatory frameworks.

When faithfully observed, these requirements support the union’s legitimate financial needs and the members’ rights, striking a balance between empowering unions to achieve their collective bargaining objectives and safeguarding the fundamental rights of individual workers to the fruit of their labor.