Simplified Query: Is it legal for an employer in the Philippines to hold an employee's salary for the entire pay period if the employee notified their manager of an absence due to a health emergency?

Under Philippine labor law, employees have specific rights regarding the timely payment of wages and the treatment of absences due to health reasons. The legal framework governing these rights is primarily found in the Labor Code of the Philippines.

Payment of Wages

The Labor Code mandates that wages should be paid on time, and employers are generally not allowed to withhold salaries except under specific circumstances outlined by law. Employers are required to pay wages at least once every two weeks or twice a month at intervals not exceeding sixteen days.

Authorized Deductions

While the employer has the right to make deductions from an employee's wages, these deductions must be authorized by law, regulations, or with the employee’s consent. Common authorized deductions include:

Withholding Tax
SSS, PhilHealth, and Pag-IBIG Contributions
Union Dues
Other Deductions as Agreed Upon in the Employment Contract

Absence Due to Health Reasons

Absences due to health reasons, particularly those substantiated by a medical certificate or a legitimate health emergency, are typically covered by the employee's leave benefits. Under the Labor Code, employees are entitled to service incentive leaves, which include sick leave. Additionally, employees who have rendered at least one year of service are entitled to five days of service incentive leave annually.

For health emergencies, employees should ideally notify their employer as soon as possible and provide necessary documentation upon return. If the absence is legitimate and properly documented, the employer should not penalize the employee by withholding their entire salary.

Legal Prohibitions on Salary Withholding

Withholding an employee’s entire salary for a pay period due to an absence, especially one that has been communicated and justified, is generally prohibited. The Department of Labor and Employment (DOLE) emphasizes that:

Salaries should not be withheld as a form of disciplinary action without due process.
Any withholding of wages without justifiable reason or due process is considered an illegal act.

Dispute Resolution

If an employer withholds an employee's salary improperly, the employee can file a complaint with the DOLE. The department handles such grievances and can mediate between the employer and the employee to resolve the issue. If necessary, the matter can escalate to the National Labor Relations Commission (NLRC) for adjudication.

Conclusion

In the Philippines, employers are not legally allowed to withhold an employee's entire salary for a pay period due to an absence if the absence is due to a health emergency and has been properly communicated. The Labor Code and DOLE guidelines protect employees' rights to receive their wages on time and to use their entitled leave benefits for health-related absences. Any unjust withholding of salary can be contested through appropriate legal channels.