Illegal Wage Deductions from Employee’s Salary Should be Reimbursed by Employer
There are employers who deduct from the wages of their employees. Some of these are illegal.
In one case, the employer deduct from the wage constituting penalties for deliveries outside of the delivery hours, cell phone plans, bad orders and liquidation shortage. [Marby Food Ventures Corporation vs. Dela Cruz, G.R. No. 244629, July 28, 2020]
It is clearly stated in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except in cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment, among others.
The Omnibus Rules Implementing the Labor Code, similarly, provides that deductions from the wages of the employees may be made by the employer when such deductions are authorized by law, or when the deductions are with the written authorization of the employees for payment to a third person.
Therefore, any withholding of an employee’s wages by an employer may only be allowed in the form of wage deductions under the circumstances provided in Article 113 of the Labor Code, as well as the Omnibus Rules implementing it.
Further, Article 116 of the Labor Code clearly provides that it is unlawful for any person, directly or
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indirectly, to withhold any amount from the wages of a worker without the worker’s consent.
Hence, where the alleged deductions were effected due to the penalties imposed for deliveries outside the delivery hours, cell phone plans, bad orders and liquidation shortage, it is held that the act is a clear violation of the Labor Code.
There was no written conformity coming from the employees regarding the deduction. Hence, reimbursement of these illegal deductions should be returned to the employees.
See here the procedure to observe when the employee refuses to receive employer’s notice.
In addition, the company should send another copy by registered mail and keep the registry receipt for future reference.
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Twin Requirements of Notice and Hearing