Can an employer legally withhold an employee's salary for a day of absence due to a health emergency, even if a leave request was denied?

In the Philippines, the legal framework surrounding the withholding of salaries by employers is governed by various labor laws, particularly the Labor Code of the Philippines (Presidential Decree No. 442, as amended). According to the Labor Code, employees are entitled to receive compensation for the work they have rendered, and any deduction from their wages must be lawful and justified.

Right to Compensation

Under Article 113 of the Labor Code, the only circumstances under which deductions from an employee's salary can be made are:

When required by law, such as withholding tax and SSS contributions.
When authorized by the employee in writing for specific purposes, such as loan payments.
When the deductions are in accordance with a collective bargaining agreement (CBA).

Absent any of these circumstances, an employer cannot unilaterally withhold an employee's salary, even if the employee was absent for a day.

Absences and Leave Policies

While employers have the discretion to approve or deny leave requests, they must also adhere to the law and company policies. Under Republic Act No. 11210 or the "105-Day Expanded Maternity Leave Law" and Republic Act No. 8187 or the "Paternity Leave Act of 1996," employees are entitled to certain types of leaves, and the denial of these leaves may constitute a violation of the law.

In the case of other leaves such as sick leave or emergency leave, employers may require proper documentation or adherence to company procedures. However, if an employee is absent due to a legitimate reason, such as a health emergency, the employer should not impose penalties like withholding salary without due process.

Penalties for Unlawful Salary Withholding

If an employer withholds an employee’s salary without legal justification, the employer may be liable for illegal deduction under the Labor Code. Employees have the right to file a complaint with the Department of Labor and Employment (DOLE) to address such grievances. The DOLE may then order the employer to release the withheld salary and, if applicable, impose fines or other penalties.

Conclusion

Employers in the Philippines must exercise caution when considering the withholding of an employee's salary due to absences. Unless justified by law or authorized by the employee, withholding salary for a day of absence, especially due to a health emergency, is not legally permissible. Employees who face such issues should be aware of their rights and may seek legal recourse if necessary.