Withholding Pay Resignation Philippines

Question on Withholding Back Pay Due to Resignation Without Notice in the Philippines

Question:

The client resigned from their company without giving notice and their employer is refusing to give them their back pay. They are inquiring whether the company can legally do that under Philippine law.

Answer:

Applicable Laws:

1. Labor Code of the Philippines: Specifically, Article 116, which prohibits employers from withholding any amount from an employee's wages without a legal process.

Can the Company Legally Withhold Your Back Pay?

Generally, withholding back pay without a valid reason is contrary to Philippine labor laws. Employers are generally not allowed to withhold any amount from an employee's wages unless there is a debt or a legal process requiring them to do so.

What Does "Without Notice" Mean?

However, if the company policy or your employment contract stipulates that you are required to provide notice before resignation, failure to do so may result in penalties. These penalties could potentially be deducted from your back pay.

Possible Remedies:

1. Internal Grievance: Initially, you may file an internal grievance to formally bring up the matter with your employer.
2. Labor Arbitration: If the internal grievance doesn't resolve the issue, you can escalate the matter to the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC).
3. Legal Action: Consult with a labor lawyer to explore the possibility of taking legal action against your employer for unlawfully withholding your back pay.

Recommendations:

If you find yourself in such a situation, it's advisable to consult a lawyer specializing in labor laws to guide you through the legal landscape.

Disclaimer:

This article is intended for informational purposes only and should not be considered as legal advice. For advice tailored to your individual circumstances, consult a lawyer.