Read also: MAY AN EMPLOYER BE EXEMPTED FROM COMPLIANCE WITH A WAGE ORDER?
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No employer shall make any deduction from the wages of his employees.
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Wage deduction may be allowed when the worker is insured with his consent by the employer.
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Wage deductions are allowed when the deductions are with written authorization of the employees for payment to the employer or a third person and the employer agrees to do so.
Generally, no employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees. This rule however is subject to a few exceptions.
Wage deduction may be allowed when the worker is insured with his consent by the employer; or for union dues, in cases where the right of the worker or his union to check off has been recognized by the employer or authorized in writing by the individual worker concerned.
Section 10 (b) (Wage deduction) of Rule VIII (Payment of Wages) is hereby amended, as follows:
“SEC. 10. Wage deduction. – Deductions from the wages of the employees
may be made by the employer in any of the following:
a. xxx
b. When the deductions are with written authorization of the employees for payment to THE EMPLOYER or a third person and the employer agrees to do so, provided that the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction.”
Thus, the employer may be allowed to deduct from employee’s wages if there is a written authorization of the employees for payment to the employer or a third person and the employer agrees to do so.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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