Allowances Philippines

Legal Implications of Non-Credited Allowances Removed Without Notice in the Philippines

Question:
I have not received my allowances, and they were removed without any prior notice. What are my legal rights and what can I do?

Answer:

Labor Laws on Wages and Allowances

  1. Protection Under Labor Code:

    • The Labor Code of the Philippines generally protects the wages and allowances of employees. Non-payment or unauthorized deductions may be considered a violation.
  2. Contractual Obligations:

    • If your employment contract or collective bargaining agreement mentions the allowances, their non-credit or removal without notice might constitute a breach of contract.
  1. Due Process:

    • Employers generally must inform employees of any changes to their compensation structure, including allowances, beforehand. Failure to do so could potentially be considered a violation of your rights.
  2. Consent:

    • In many cases, deductions or changes to allowances should only be done with the explicit consent of the employee, unless it is mandated by law or agreed upon in the contract.

Remedies and Steps

  1. Internal Grievance:

    • You may file an official complaint within your company through its Human Resources department or other designated body.
  2. Labor Arbitration:

    • If internal mechanisms do not resolve the issue, you can escalate the matter to the Department of Labor and Employment (DOLE) for arbitration.
  3. Civil Suit:

    • In extreme cases, you may file a civil case for breach of contract, though this is generally considered a last resort due to the costs and time involved.
  4. Criminal Liability:

    • While less common for issues related to allowances, there might also be criminal penalties for employers under certain circumstances, like fraud or embezzlement.

Documentation

  1. Importance:

    • Keep records of all transactions, announcements, and correspondence relating to your allowances. These will be crucial if you choose to take legal action.
  2. Witnesses:

    • Collect statements from coworkers or supervisors who can vouch for the non-credit or sudden removal of your allowances.

Conclusion:
The non-crediting of allowances and their subsequent removal without prior notice can be a serious concern, both contractually and under Philippine labor laws. As such, it's advisable to consult legal professionals for proper advice tailored to your situation.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.