Below is a comprehensive and detailed presentation of the legal framework and established jurisprudential principles governing prohibitions related to the payment and disposition of wages in the Philippines. This encompasses the pertinent provisions of the Labor Code of the Philippines, its Implementing Rules and Regulations (IRR), and special statutes including R.A. No. 6727 (Wage Rationalization Act), R.A. No. 9504, and R.A. No. 9178, as they all interface with labor standards concerning wages. The discussion is structured into categorical prohibitions, supported by legal bases and their practical implications.

1. Prohibition Against Paying Below the Minimum Wage

Legal Bases:

Labor Code: Primarily under Book III, Title II (Wages), which mandates employers to pay at least the statutory minimum wage prescribed by law or by wage orders issued by the Regional Tripartite Wages and Productivity Boards (RTWPBs).
R.A. No. 6727 (Wage Rationalization Act): Centralizes the determination of minimum wages at the regional level through RTWPBs. The law mandates strict compliance with minimum wage rates determined for each region.
R.A. No. 9178 (Barangay Micro Business Enterprises [BMBE] Act): While BMBEs are exempt from the minimum wage law, the statute does not permit paying below whatever lawful remuneration has been agreed upon in good faith, nor does it allow oppressive schemes. Standard prohibitions against illegal wage practices remain in effect.

What is Prohibited:

Any arrangement, contract, or company policy designed to pay below the minimum wage set by law or wage orders.
Collusive or deceptive acts intended to circumvent wage orders, such as misclassification of employees or concealing employment relationships.

2. Prohibition Against Wage Deduction Without Legal or Employee-Authorized Basis

Legal Basis:

Labor Code of the Philippines, Article 113: Deductions from wages are strictly regulated. No employer may deduct any amount from an employee’s wages unless:
(a) Required by law (e.g., withholding tax, SSS, PhilHealth, Pag-IBIG contributions).
(b) The deductions are with the written authorization of the employee and are clearly for the employee’s benefit, such as authorized loan repayments or insurance premiums.
(c) The deduction is allowed by a valid collective bargaining agreement (CBA), a company policy consistent with law, or a final judgment by a competent authority.

What is Prohibited:

Deducting amounts not explicitly allowed by law or without the employee’s prior written, informed, and voluntary consent.
Forcing employees to shoulder costs of business operations, damages to tools/machinery due to ordinary wear and tear, or other charges that are not legally justified.
Making deductions as a punitive measure or to penalize employees without lawful authority.

3. Prohibition Against Withholding or Delaying Payment of Wages

Legal Basis:

Labor Code, Article 103: Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.
Labor Code, Article 116: Withholding of wages is generally prohibited unless authorized by law, court order, or when the employer is permitted to do so under recognized exceptions (e.g., wage attachments by a court or deductions mandated by law).

What is Prohibited:

Arbitrarily delaying or refusing to pay wages for work already performed.
Imposing conditions that effectively withhold wages to ensure continued employment or to coerce employees into acceding to unfair practices.
Using promissory notes, I.O.U.s, or other non-cash instruments as a substitute for actual wage payment unless otherwise allowed by regulations (e.g., payment through ATM/bank deposits with employee consent).

4. Prohibition Against Payment of Wages in Forms Other than Legal Tender

Legal Basis:

Labor Code, Article 102: Wages shall be paid in legal tender of the Philippines and not by means of promissory notes, tokens, chits, or merchandise, except as otherwise provided by law or regulations issued by the Secretary of Labor and Employment.

What is Prohibited:

Compelling employees to accept wages in forms other than cash (or duly recognized equivalents such as checks or direct bank deposits with the employee’s consent).
Payment in goods, company scrip, or any other form intended to control where and how employees spend their earnings, unless expressly authorized and beneficial to the employee (e.g., payment-in-kind arrangements in some agricultural settings require strict compliance with DOLE rules).

5. Prohibition on Limiting the Freedom of Employees to Dispose of Their Wages

Legal Basis:

Labor Code, Articles 112 & 114: The Code ensures that employees must be free to use their wages as they see fit. Employers cannot require employees to patronize certain stores or pay back wages to the employer’s business interests.

What is Prohibited:

Requiring employees to purchase merchandise exclusively from the employer’s store (known historically as the “company store” practice) or from specific establishments designated by the employer.
Any act that directly or indirectly restrains the worker’s freedom to spend earned wages, such as compelling the employee to use wages for the employer’s benefit or forcing them into usurious loan arrangements.

6. Prohibition on Retaliatory Wage Reductions or Discrimination in Wage Fixing

Legal Basis:

Labor Code, Article 118: It is unlawful for an employer to reduce the wages of an employee to offset mandated increases under wage orders or laws. Once a wage increase is effective, it must not be negated by a corresponding wage cut.
Equal Pay and Non-Discrimination Principles: While not always stated as a “prohibition on wages” per se, wage determination must not be discriminatory on grounds of sex, age, race, religion, or other protected categories. Various related statutes (e.g., the Magna Carta of Women, R.A. 9710) reinforce the prohibition on discriminatory wage practices.

What is Prohibited:

Implementing wage cuts to counteract mandatory wage increases.
Offering different wages for the same work based on unlawful discrimination.
Any subterfuge aimed at diminishing benefits or circumventing legislated wage entitlements.

7. Prohibition on Circumventing Wage-Related Tax Provisions (R.A. No. 9504)

Legal Basis:

R.A. No. 9504: Grants income tax exemptions for minimum wage earners. Although this law primarily concerns taxation, it indirectly imposes limitations on employers who might attempt to reconfigure wage structures or misrepresent employment relationships to avoid compliance with tax and wage mandates.

What is Prohibited:

Manipulating wage structures or classifying employees as non-minimum wage earners to evade tax exemptions that rightfully accrue to employees.
Any scheme aimed at depriving employees of their legally mandated tax benefits tied to wage levels or minimum wage status.

8. Enforcement and Sanctions

Violations of these prohibitions may result in administrative, civil, or criminal liabilities, depending on the nature of the infraction:

Department of Labor and Employment (DOLE) Enforcement: Routine labor inspections and the filing of complaints by employees can lead to compliance orders, restitution of unpaid wages, and penalties.
Criminal Liability: Certain willful violations (such as using coercion, issuing false promissory notes in lieu of wages, or systematic withholding of wages) can expose the employer to criminal prosecution.
Civil Remedies: Employees can seek payment of unpaid or illegally deducted wages, including moral and exemplary damages in appropriate cases, as well as attorney’s fees.

Conclusion

The legal landscape on prohibitions regarding wages is grounded in the fundamental policy of the State to afford full protection to labor. The Labor Code, along with the IRR and supplemental statutes like R.A. No. 6727, R.A. No. 9504, and R.A. No. 9178, establishes a strict and comprehensive framework to ensure that wages are paid fully, regularly, and justly, free from illicit deductions, manipulations, or coercive conditions. Employers must adhere diligently to these prohibitions to avoid sanctions and to uphold the rights and dignities of their workers.