Labor Law: Title II Wages; Chapter III Payment of Wages; Arts. 102 - 105

Title II

WAGES

Chapter III

PAYMENT OF WAGES

Arts. 102 - 105

Q: If the employee has to travel to get his pay, must the employer shoulder the travel cost? 

Art. 102. Forms of payment.
No employer shall pay the wages of an employee

by means of promissory notes, vouchers, coupons,

tokens, tickets, chits, or any object

other than legal tender,

even when expressly requested by the employee.

Payment of wages

by check or money order

shall be allowed when such manner of payment

is customary on the date of effectivity of this Code,

or is necessary because of special circumstances

as specified in appropriate regulations

to be issued by the Secretary of Labor and Employment

or as stipulated in a collective bargaining agreement.

Notes:

• Where the employee alleges the nonpayment of wages and/or commission, the employer has the burden to prove payment. (Jimenez, April 2, 1996)
• In a decision in 1998, the Court declared that what is to be resolved in Labor's favor is not only doubt in the meaning of the law, but also doubt in evidence of the disputing employer and employee. The court said: 
• Moreover, well-settled is the rule that if doubts exist between the evidence presented by the employer and the employee, the scales of justice must be tilted in favor of the latter. Thus, in controversies between a worker and her employer, doubts reasonably arising from the evidence or in the interpretation of agreements should be resolved in favor of the former. (Triple Eight, December 3, 1998). 
• This ruling says in effect that if the hearing officer doubts who's evidence he should believe, he should believe that of the worker. 
• Payment of wages through automated teller machines (ATM) is allowed under a labor advisory dated November 25, 1996. 

Implementing Rules (Rule VIII)

SECTION 1. Manner of wage payment. – 

As a general rule, wages shall be paid in legal tender and the use of tokens, promissory notes, vouchers, coupons or any other form alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee.

SEC. 2. Payment by check. – 

Payment of wages by bank checks, postal checks or money orders is allowed where such manner of wage payment is customary on the date of the effectivity of the Code, where it is stipulated in a collective agreement, or where all of the following conditions are met:

        (1) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;

        (2) The employer, or any of his agents or representatives, does not receive any pecuniary benefit directly or indirectly from the arrangement;

        (3) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and

        (4) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks.

Art. 103. Time of payment. 
Wages shall be paid at least once every two (2) weeks 
or twice a month 

at intervals not exceeding sixteen (16) days. 

If on account of force majeure 

or circumstances beyond the employer’s control, 

payment of wages on or within the time herein provided cannot be made, the employer shall pay the wages immediately after 

such force majeure or circumstances have ceased. 

No employer shall make payment 

with less frequency than once a month.
The payment of wages of employees 

engaged to perform a task 

which cannot be completed in two (2) weeks 

shall be subject to the following conditions,

in the absence of 

a collective bargaining agreement 

or arbitration award:

(1) That payments are made at intervals 

not exceeding sixteen (16) days,

in proportion to the amount of work completed;

(2) That final settlement is made 

upon completion of the work.

Notes

• When the work is done, wages must be paid, or at intervals not exceeding 16 days. 
• "Cash Flow difficulty" or "uncontrolled collectibles" or "defaulting clients" are not legal reasons not to pay wages on time.
• Such are similar allegations are not force majeure, or circumstances beyond the employer's control. 
• Hence not valid reasons for nonpayment or delayed payment of wages. 
• Employment is a bilateral or a two-way contract, creating mutual obligations:
• the employer does the work 
• the employer pays it
• The obligation to pay wages arises from both law and contract. 
• It must be complied with good faith.
• Fraud, negligence or delay in making the payment makes the debtor liable for damages. (Civil Code, Arts. 1158, 1159, and 1170)
• The Rules Implementing the Code requires every employer to pay his employees through payroll.
• The payroll should show clearly, among other data, the employee's pay rate, the deductions made, and the amount actually paid. (Book III, Rule X, Sec. 6)
• The payrolls may be inspected from time to time by authorized representatives of the Department.
• Also required are employers individual time records.

Implementing Rules (Rule VIII)

SEC. 3. Time of payment. – 

        (a) Wages shall be paid not less often than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the employer’s control, in which case the employer shall pay the wages immediately after such force majeure or circumstances have ceased.

        (b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at intervals not exceeding sixteen (16) days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work.

Art. 104. Place of payment. 
Payment of wages 

shall be made at or near the place of undertaking,

except as otherwise provided by such regulations

as the Secretary of Labor and Employment 

may prescribe under conditions 

to ensure greater protection of wages.

Implementing Rules (Rule VIII)

SEC. 4. Place of payment. – 

    (a) As a general Rule, the place of payment shall be at or near the place of undertaking. Payment in a place other than the workplace shall be permissible only under the following circumstances:

        (1) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by fire, flood epidemic or other calamity rendering payment thereat impossible;

        (2) When the employer provides free transportation to the employees back and forth; and

        (3) Under any other analogous circumstances, provided that the time spent by the employees in collecting their wages shall be considered as compensable hours worked.

    (b) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall or other similar places or in places where games are played with stakes of money or things representing money except in the case of persons employed in said places.

Art. 105. Direct payment of wages.
Wages shall be paid directly to the workers to whom they are due, except:

In cases of force majeure

rendering such payment impossible

or under other special circumstances

to be determined by the Secretary of Labor and Employment

in appropriate regulations,

in which case,

the worker may be paid through another person

under written authority given by the worker for the purpose;

or Where the worker has died,

in which case, the employer may pay

the wages of the deceased worker

to the heirs of the latter

without the necessity of intestate proceedings.

The claimants, if they are all of age,

shall execute an affidavit

attesting to their relationship to the deceased

and the fact that they are his heirs,

to the exclusion of all other persons.

If any of the heirs is a minor,

the affidavit shall be executed on his behalf
by his natural guardian or next-of-kin. 

The affidavit shall be presented to the employer

who shall make payment

through the Secretary of Labor and Employment or his representative.

The representative of the Secretary of Labor and Employment

shall act as referee in dividing the amount paid

among the heirs.

The payment of wages under this Article

shall absolve the employer

of any further liability with respect to the amount paid.

Implementing Rules (Rule VIII)

SEC. 5. Direct payment of wages. – 

Payment of wages shall be made direct to the employee entitled thereto except in the following cases:

    (a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;

    (b) Where payment to another person of any part of the employee’s wages is authorized by existing law, including payments for the insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in accordance with a collective agreement or authorized in writing by the individual employees concerned; or

    (c) In case of death of the employee as provided to the succeeding section.

SEC. 6. Wages of deceased employee. – 

The payment of the wages of a deceased employee shall be made to his heirs without the necessity of intestate proceedings. When the heirs are of age, they shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons. In case any of the heirs is a minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the employer, he shall make payment to the heirs as representative of the Secretary of Labor.