Dear Attorney,

Good day, Attorney.

I hope this letter finds you well. I am writing to seek your legal advice regarding an issue I am currently facing with my employer. Recently, I resigned from my position as a supervisor due to an incident that caused me significant stress. Here are the key facts of the matter:

An employee under my supervision received an item (AirPods) for repair but failed to notice and document existing scratches on the unit. Consequently, the receiving form indicated "no scratches."
Another employee also failed to notice the scratches. When the repaired unit was returned to the customer, the customer refused to accept it, citing the deep scratches.
The employer decided to charge all staff involved in receiving and handling the unit for the cost of the alleged damage. Despite my supervisory role, I was not directly involved in the handling or inspection of the item.
As per the HR Manager, I was included in the charges because of my position as a supervisor. I protested this decision, but the HR Manager insisted that the charge would still be deducted from my salary.
Due to the stress caused by this situation, I opted to resign, filing a two-week notice. However, my salary, which was due on April 15, has been withheld. I urgently need these funds to pay for my housing obligations.

My primary concerns are as follows:

Is it lawful for my employer to deduct the alleged damage costs from my salary without my consent, especially when I am not directly responsible for the incident?
Can my employer withhold my salary even after I resigned and fulfilled part of my notice period?
What legal actions can I take to address these grievances?

Your guidance on this matter would be greatly appreciated.

Sincerely,
A Distressed Employee

Legal Analysis of the Concern

I. Deduction of Salary for Alleged Negligence: Legal Framework

Under Article 113 of the Labor Code of the Philippines, wage deductions are prohibited unless they fall under specific circumstances. These include:

Deductions authorized by law, such as taxes and SSS contributions.
Deductions authorized in writing by the employee for a lawful purpose, such as insurance premiums.
Deductions made by the employer for losses due to employee negligence, provided certain conditions are met.

The conditions for valid deductions for negligence are outlined in Section 10, Rule VIII, Book III of the Omnibus Rules Implementing the Labor Code, which states:

The employee must be shown to be grossly negligent or to have willfully acted in a manner causing the loss.
The employer must give the employee due process, including notice of the charge and an opportunity to explain or defend themselves.

In your case:

You did not directly handle or inspect the item in question, making it difficult to establish your gross negligence or willful act.
The employer’s decision to deduct your salary for an incident you did not cause appears arbitrary and contrary to the principle of no work, no pay. Supervisory accountability does not automatically equate to liability for every error made by subordinates unless gross negligence or willful misconduct is proven.

II. Withholding of Final Salary: Legal Perspective

Article 116 of the Labor Code explicitly prohibits employers from withholding wages except under certain conditions. These include court orders or lawful wage deductions authorized under Article 113.

Moreover, under DOLE Department Order No. 18-A, Series of 2011, employers must release final pay, including unpaid wages, within a reasonable time. Holding your salary after resignation without valid grounds could constitute illegal withholding of wages, which is punishable under Article 288 of the Labor Code.

III. Legal Recourse

File a Complaint with the Department of Labor and Employment (DOLE):
- You may file a labor complaint for illegal deductions and withholding of wages. DOLE provides conciliation and mediation services under the Single Entry Approach (SEnA) to resolve disputes quickly.
- Request immediate release of your salary and reimbursement for any unauthorized deductions.
File a Complaint with the National Labor Relations Commission (NLRC):
- If conciliation fails, escalate your case to the NLRC for adjudication. You may include claims for moral and exemplary damages if the employer’s actions caused undue distress.
Demand Letter:
- Send a formal demand letter to your employer, outlining their violations of labor laws and requesting the immediate release of your salary. Mention potential legal consequences if they fail to comply.
Legal Assistance:
- Engage a lawyer to assist with filing the necessary complaints and representing you in legal proceedings. If financial constraints are an issue, seek assistance from PAO (Public Attorney’s Office) or labor unions.

IV. Relevant Jurisprudence

Manila Banking Corporation v. NLRC (G.R. No. 70762, September 18, 1992):
- The Supreme Court ruled that employers cannot arbitrarily withhold an employee’s wages. Wages are the lifeblood of employees, and withholding them violates the Labor Code.
King of Kings Transport, Inc. v. Mamac (G.R. No. 166208, June 29, 2007):
- Due process must be observed before imposing disciplinary actions, including salary deductions. Employers must provide notice and an opportunity to be heard.
Fuji Television Network, Inc. v. Espiritu (G.R. No. 204944, April 25, 2018):
- Supervisors can only be held liable for subordinate actions if their negligence or misconduct directly contributed to the harm.

Conclusion

Your employer’s actions of deducting alleged damages from your salary without your consent and withholding your final pay appear to violate Philippine labor laws. These actions may constitute illegal deductions, unlawful withholding of wages, and denial of due process.

You are advised to:

File a formal complaint with DOLE immediately.
Assert your rights under the Labor Code and request legal remedies, including the release of your salary and reimbursement for unauthorized deductions.
Consider escalating your case to the NLRC or seeking legal representation if necessary.

Your case highlights the importance of ensuring that employers respect workers' rights and adhere to due process. Rest assured, Philippine labor laws provide robust protection against such injustices.