Letter to a Lawyer:

Dear Attorney,

I have been employed for less than three months without a formal employment contract. I recently resigned from my position due to concerns over salary discrepancies. I want to know whether I have the right to file a complaint with the Department of Labor and Employment (DOLE) regarding this matter, despite the absence of a written contract and my short employment duration.

Could you please advise me on my legal rights in this situation and the possible courses of action I could take to address this concern?

Sincerely,
An Employee Seeking Advice

Legal Article: Addressing Employment Without a Contract and Salary Discrepancies Under Philippine Labor Law

In the Philippine labor landscape, the rights of employees are enshrined in various labor laws, with the Labor Code of the Philippines being the most significant piece of legislation. It provides the foundation for fair employment practices and employee protection, irrespective of the existence of a formal written contract. Thus, when an employee finds themselves working without a contract or for a short period, yet facing salary disputes, they often question their legal standing, particularly regarding their ability to file a complaint with the Department of Labor and Employment (DOLE). This article seeks to explore the rights of such employees, the remedies available to them, and the jurisdiction of DOLE in addressing these issues.

1. Employment Without a Contract: Legal Considerations

A common misconception in labor relations is that an employee's rights hinge on the existence of a written contract. In reality, under Philippine labor laws, an employment relationship can exist even without a formal or written employment contract. The Labor Code recognizes that a contract may be either oral or written, and what truly defines an employment relationship is the presence of the essential elements of employer-employee engagement. These elements are:

Selection and engagement of the employee
Payment of wages
Power to dismiss
Control over the employee's conduct

This means that if an employer has exercised control over the work and compensated the employee for services rendered, an employment relationship is established, even if no written contract exists. Therefore, the absence of a formal employment agreement does not diminish the employee’s rights under the law.

Case Law on Employment Without a Written Contract

In Gaa v. CA (GR No. 105587, 1993), the Supreme Court emphasized that the lack of a written contract does not negate the existence of an employer-employee relationship. This ruling is significant as it affirms that the rights and obligations of both parties are still governed by the Labor Code and other applicable labor laws. An employee in such a scenario can still seek redress for violations of their rights, particularly in instances of unjust termination or non-payment of wages, as long as they can prove the existence of an employment relationship.

2. Resignation and Salary Issues: The Employee’s Right to Redress

Salary disputes are a frequent source of contention between employees and employers, especially in cases where no clear terms were outlined in a contract. Under Article 103 of the Labor Code, employees are entitled to be paid their salaries in full and in a timely manner. Should there be a failure on the part of the employer to fulfill this obligation, the employee may seek relief through the DOLE, regardless of whether the employment was covered by a written agreement.

Resignation Due to Salary Issues

Resignation is a right of the employee, but the reason for resignation, especially if prompted by salary disputes, can strengthen the employee's claim when filing a complaint. In the absence of a contract that specifies terms of payment, an employee is still entitled to the minimum wage as set by law, and if the employer fails to comply with this, the employee can resign for "just cause."

Article 285 of the Labor Code states that an employee may terminate his employment with just cause without serving any notice if, among others, the employer’s act is in violation of the terms and conditions of employment. Salary discrepancies or non-payment of wages can qualify as such a violation, making the employee's resignation justified.

3. Filing a Complaint with DOLE: Jurisdiction and Process

The Department of Labor and Employment (DOLE) serves as the primary agency tasked with the enforcement of labor laws in the Philippines. Even without a contract, an employee who resigned due to salary issues may file a complaint with DOLE under certain circumstances. DOLE has jurisdiction over complaints related to:

Non-payment or underpayment of wages
Non-payment of benefits such as 13th-month pay
Illegal deductions from wages
Non-compliance with the minimum wage law

Upon receiving a complaint, DOLE typically follows a process of mediation and conciliation to resolve the issue between the employee and the employer. Should these efforts fail, the case may be referred to the National Labor Relations Commission (NLRC) if the issues involve illegal dismissal or claims that exceed the jurisdictional threshold of DOLE.

Steps in Filing a Complaint:

Filing of Complaint: The employee can go to the nearest DOLE office and file a complaint in writing. The complaint should include the facts of the case, such as the duration of employment, salary concerns, and the circumstances leading to the resignation.
Conciliation-Mediation Process: The DOLE officer will call both the employer and the employee to a meeting in an attempt to resolve the issue amicably. The goal is to find a middle ground and avoid litigation.
Referral to NLRC: If the mediation process fails, the case may be elevated to the National Labor Relations Commission (NLRC), particularly if the complaint involves illegal dismissal or monetary claims that exceed the jurisdiction of DOLE.
Award of Back Wages and Benefits: If the employee's claims are valid, DOLE or the NLRC may order the employer to pay back wages, benefits, and other entitlements. Furthermore, administrative penalties may be imposed on the employer for non-compliance with labor laws.

4. Short-Term Employment and DOLE Complaints

It is important to note that even though an employee worked for less than three months, their right to file a complaint remains intact. The Labor Code does not set a minimum duration of employment for an employee to be protected under labor laws. An individual employed for a few weeks or months still enjoys the same rights as any other employee, particularly the right to be paid their proper wages.

Probationary Employment

Under Article 296 of the Labor Code, an employee on probationary status (which typically covers the first six months of employment) has the same rights as a regular employee when it comes to salary and wages. Therefore, even if the employee resigned during the probationary period, they can still file a complaint with DOLE if they believe their salary rights were violated.

5. Contract of Adhesion and Verbal Agreements

In the absence of a written contract, employers may sometimes try to argue that employees were not entitled to certain wages or benefits because no agreement was in place. However, this is a flawed argument. Under the doctrine of contract of adhesion, any ambiguity in the employment arrangement is resolved in favor of the employee, as they are generally considered to be the weaker party in negotiations. Therefore, any verbal agreement on salary or benefits is legally binding, and the employer cannot claim that the lack of a written agreement absolves them from their responsibility to pay wages.

6. Limitations on DOLE’s Jurisdiction

While DOLE has broad authority to handle wage-related disputes, it does not have jurisdiction over certain types of cases, such as those involving illegal dismissal. If an employee was dismissed after raising concerns about salary, the appropriate recourse would be to file a complaint with the NLRC, as illegal dismissal cases fall within its jurisdiction.

7. Conclusion: Rights of the Employee and Remedies Available

In summary, an employee who has worked without a formal written contract for less than three months still has the right to file a complaint with DOLE over salary issues. The absence of a contract does not negate the existence of an employer-employee relationship, nor does it diminish the employee's entitlement to wages as stipulated under Philippine labor laws.

Resignation due to salary disputes is also considered a valid cause, and the employee can seek redress through DOLE. If salary discrepancies or non-payment occurred, the employee can file a complaint, and DOLE will assist in mediating or resolving the issue. Moreover, short-term or probationary employees are equally protected by the Labor Code, and they retain the right to fair compensation for their work.

Given the complexities of labor disputes, particularly in situations involving unwritten contracts and salary issues, employees are encouraged to seek legal advice to understand their rights fully and to determine the best course of action.

This comprehensive discussion aims to assist individuals in navigating the intricacies of labor law when faced with employment issues, ensuring that every employee is informed of their rights, regardless of the circumstances surrounding their employment.