Dear Attorney,
I hope you can assist me with a concern regarding my last pay from my previous employer. I recently received my last pay, but they deducted a significant amount due to an outstanding balance for a company-issued personal computer (PC), which they say I have not returned. The value of the PC is more than my last pay, and they are claiming I owe the remaining balance.
I have tried to return the PC several times, but no one from the company has come to collect it from me, despite my repeated efforts. I am a person with a disability (PWD) and am unable to bring the unit to the office. I am in urgent need of my full pay for my medical expenses.
Is it legal for them to continue withholding my last pay despite my willingness to return the property? How can I resolve this issue legally and fairly?
Sincerely,
Concerned Employee
Insights
In cases like yours, the company's decision to deduct an amount from your final pay to cover the value of unreturned company property is not uncommon. However, there are important legal principles at play in the Philippines that must be considered, particularly those outlined under labor laws and the employer-employee relationship.
Return of Company Property: You have shown a clear willingness to return the PC and have communicated that to your employer. As long as you are in possession of the item and have informed the company of your intent to return it, the obligation of physically returning the property is a logistical issue that the employer must reasonably accommodate—especially given your status as a PWD. Under the Magna Carta for Disabled Persons (Republic Act No. 7277), your employer is expected to provide reasonable accommodations for your condition, which may include making arrangements for the retrieval of company property.
Deduction from Last Pay: Employers in the Philippines generally have the right to withhold final pay to cover any debts owed by the employee, including the cost of unreturned company property. However, this must be done in a manner that is lawful and fair. Since you have attempted multiple times to return the property, it can be argued that you have made a good faith effort, and the company has failed to facilitate the return, especially considering your PWD status. Therefore, it could be unreasonable for them to continue withholding your pay or charging you for the PC.
Steps for Resolution: You should document all your efforts to return the PC, including any communications with your employer where you offered to return the item or asked for assistance in the process. This will serve as evidence that you acted in good faith. If they still refuse to accept the return or continue to withhold your pay, you can file a complaint with the Department of Labor and Employment (DOLE). The DOLE can mediate between you and your employer to ensure a fair resolution.
Final Pay and Deductions: Under Philippine labor law, employers are generally required to release a worker's final pay within a reasonable period after the employee's separation. While deductions for valid debts, including unreturned property, are permitted, employers must ensure that they act in good faith and allow for reasonable avenues for the return of such property.
In summary, given your circumstances, the employer's continued deduction may be unjustified. You have a strong legal basis to argue that they should either assist you in returning the PC or stop deducting amounts from your last pay given your documented attempts to resolve the situation.