Addressing Illegal Deductions by an Employer in the Philippines

Simplified Query: Ano ang dapat gawin kung mayroong ilegal na kaltas sa iyong sahod mula sa iyong dating employer?

In the Philippines, employees are protected by various labor laws that ensure their rights and fair treatment in the workplace. One significant area of protection is against illegal deductions from wages. Employers must adhere to the rules set by the Labor Code of the Philippines regarding wage deductions.

Legal Framework on Wage Deductions

  1. Labor Code of the Philippines:

    • Article 113: Deductions from wages are prohibited unless they are:
      • Authorized by law.
      • With the written consent of the employee and for the benefit of the employee.
    • Article 114: Employers can make deductions for the following reasons:
      • Insurance premiums and union dues.
      • Withholding tax, social security contributions, and other deductions mandated by law.
  2. Department of Labor and Employment (DOLE) Regulations:

    • Department Order No. 209, Series of 2020: Reinforces the guidelines on proper wage deductions and ensures compliance with the Labor Code.

Steps to Address Illegal Deductions

  1. Review Your Payslips and Employment Contract:

    • Check for Unauthorized Deductions: Carefully examine your payslips and employment contract to identify any deductions that were not authorized or agreed upon.
    • Document the Deductions: Keep a record of all payslips and any communication with your employer regarding the deductions.
  2. Internal Resolution:

    • Discuss with Employer: Approach your employer or the HR department to discuss the unauthorized deductions. Provide them with the documentation and request an explanation or correction.
    • Written Complaint: If a verbal discussion does not resolve the issue, submit a written complaint to your employer detailing the unauthorized deductions and requesting reimbursement.
  3. File a Complaint with the DOLE:

    • Prepare Your Documents: Gather all relevant documents, including payslips, employment contracts, and written complaints submitted to your employer.
    • Submit a Complaint: File a formal complaint with the nearest DOLE regional office. The complaint should include:
      • Your personal details and employment information.
      • Details of the illegal deductions.
      • Copies of supporting documents.
    • Mediation and Conciliation: The DOLE will conduct mediation and conciliation proceedings to resolve the dispute between you and your employer. If an agreement is reached, it will be documented and signed by both parties.
  4. Legal Action:

    • Consult a Lawyer: If the DOLE proceedings do not resolve the issue, consider consulting a lawyer who specializes in labor law for further legal action.
    • File a Case in Court: Your lawyer can help you file a case in the appropriate labor court to seek reimbursement for the unauthorized deductions and any other damages.

Employee Rights and Employer Obligations

  1. Employee Rights:

    • Right to Fair Wages: Employees are entitled to receive their full wages without unauthorized deductions.
    • Right to Due Process: Employees have the right to a fair process when disputing wage deductions, including the opportunity to present evidence and be heard.
    • Right to Reimbursement: Employees have the right to be reimbursed for any unauthorized deductions made by the employer.
  2. Employer Obligations:

    • Transparency: Employers must provide clear and accurate payslips that detail all deductions.
    • Compliance with the Law: Employers must adhere to the Labor Code and DOLE regulations regarding wage deductions.
    • Rectification: Employers must promptly address and rectify any unauthorized deductions when brought to their attention.

Conclusion

Illegal deductions from wages are a serious violation of employee rights under Philippine labor law. Employees who experience unauthorized deductions should review their payslips and employment contracts, attempt to resolve the issue internally, and if necessary, file a complaint with the DOLE or seek legal assistance. Understanding your rights and the legal processes available can help ensure fair treatment and proper compensation.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.