Dear Attorney,

I hope this message finds you well. I am writing to seek legal guidance regarding a matter involving my recent application as an on-call waiter for a three-day assignment. The agency involved has informed me that I must sign a contract before receiving my salary for the work done.

Given the short-term nature of the job, I am unsure whether they are legally allowed to withhold my wages or require a contract for such a brief engagement. I am seeking clarity on whether this practice complies with Philippine labor laws and what my rights are under these circumstances.

Sincerely,
A Concerned Worker

Legal Analysis of the Issues

The issues raised in the inquiry involve two main questions:

Can the agency legally withhold your salary for the work performed as an on-call waiter?
Is signing a contract a legal requirement for short-term, casual, or on-call employment?

Let us address these issues thoroughly based on Philippine labor law.

Issue 1: Withholding of Wages

Under Philippine labor law, employees are entitled to be paid for work performed, regardless of their employment classification. The following laws and regulations are applicable:

1.1. The Right to Timely Payment of Wages

Article 103 of the Labor Code of the Philippines provides that wages shall be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days. It further emphasizes that employees must be paid their wages promptly after the work is completed.
In cases of short-term or casual employment, wages must be paid immediately upon the completion of the work, as the delay could violate the principle of "fair day's wage for a fair day's labor."

1.2. Prohibition Against Withholding Wages

Article 116 of the Labor Code explicitly prohibits employers from withholding wages without the employee's consent or any lawful basis.
Exceptions include instances where deductions are authorized by law (e.g., withholding taxes, SSS, Pag-IBIG, or PhilHealth contributions) or those expressly allowed by the employee in writing.
In your case, the agency’s act of conditioning the release of your wages upon signing a contract could be deemed unlawful if it delays your rightful compensation for the work already performed.

1.3. Penalties for Nonpayment or Delay

Under Republic Act No. 8188, the deliberate nonpayment of wages is punishable by a fine ranging from ₱25,000 to ₱100,000 or imprisonment of two to four years, or both.

Conclusion on Issue 1: The agency cannot withhold your wages unless a lawful reason exists. Delaying payment to force you into signing a contract may constitute a violation of your labor rights.

Issue 2: Requirement of a Contract for Short-Term Employment

Under Philippine labor laws, employment contracts are not mandatory for all types of employment, particularly for casual or short-term work. However, it is advisable to have a written agreement to clarify the terms and conditions of employment.

2.1. Is a Contract Legally Required?

Philippine law does not explicitly require a written contract for employment to exist. Employment may be established verbally or through implied agreements, as long as there is evidence of an employer-employee relationship. This relationship can be determined using the following four-fold test:
1. The power to hire or fire the employee.
2. The payment of wages.
3. The power to control the employee’s conduct or work.
4. The power to discipline the employee.
As an on-call waiter, the lack of a formal contract does not negate your rights as an employee. However, the employer may request you to sign a contract to outline the terms of the engagement for documentation purposes. This is generally for their compliance with labor standards.

2.2. Labor Standards for Short-Term or Casual Workers

Even without a formal contract, you are entitled to:
- Minimum wage: The employer must pay you at least the prevailing minimum wage in the region.
- Overtime pay: If your work exceeds eight hours in a day, you are entitled to additional compensation equivalent to at least 25% of your regular hourly rate.
- Rest day pay: If you work on your rest day, you are entitled to an additional 30% of your daily rate.
- Holiday pay: If the work falls on a declared holiday, premium pay rules apply.
Under DOLE Department Order No. 174, Series of 2017, all employees, regardless of employment status, are entitled to statutory benefits unless they are proven to be independent contractors.

2.3. Legitimate Use of Contracts in Short-Term Work

Employers sometimes require contracts to:
1. Define the specific period of engagement (e.g., three days in your case).
2. Establish agreements on payment, hours of work, and other working conditions.
3. Ensure compliance with the Labor Code and DOLE regulations.
However, forcing an employee to sign a contract after the work has been completed, especially as a condition for releasing wages, may be deemed coercive and invalid.

Conclusion on Issue 2: While signing a contract is not strictly required under the law, having one can protect both parties. However, withholding wages to compel contract signing is legally questionable.

What Can You Do?

1. File a Complaint with DOLE

You may file a complaint with the Department of Labor and Employment (DOLE) regarding the withholding of wages. DOLE provides mechanisms for addressing wage disputes and resolving employer-employee conflicts.

2. Seek Legal Assistance

Consult a labor lawyer or a union representative (if applicable) to assert your rights. Provide evidence such as:
- Proof of hours worked.
- Communication with the agency regarding your wages.

3. Document Everything

Keep a record of all interactions with the agency, including written communications or receipts (if any) of completed work.

4. Remind the Agency of Their Obligations

Politely remind the agency of their obligations under the Labor Code. Cite Article 103 (timely payment of wages) and Article 116 (prohibition against withholding wages).

Key Takeaways

You have a right to be paid promptly for the work done, regardless of whether a contract exists.
Withholding wages as leverage for signing a contract is unlawful.
Short-term or casual workers are entitled to the same basic rights and labor protections as regular employees.

If the agency continues to withhold your wages, DOLE is your best recourse to enforce your rights and hold them accountable for any violations.