Know Your Rights: No More Pay Hold-Ups! Understanding Article 116 of the Labor Code

Every Filipino worker deserves fair compensation for their hard work. Article 116 of the Labor Code, as amended, stands as a shield against unlawful deductions from your hard-earned salary. Let's break down what this article means for you and your paycheck.

What Article 116 Says

In simpler terms, Article 116 prohibits any employer or any person acting on their behalf from taking away any part of your wages or benefits without your consent. This includes:

  • Direct deductions: This is a straightforward one. Your employer cannot deduct anything from your salary without your written authorization. This applies to things like cash advances, purchases from company stores, or disciplinary fines.
  • Indirect deductions: This gets trickier. Employers cannot force you to participate in schemes that indirectly reduce your pay. This could be mandatory "donations" to a company event, or requiring you to buy your own supplies for the job.
  • Kickbacks: This is the practice of demanding a portion of your wages in exchange for a favor, like getting a promotion or keeping your job. This is strictly illegal.

Examples of Violations

Here are some real-life scenarios where Article 116 is violated:

  • Mandatory "contributions" to a company Christmas party. While attending a company event is enjoyable, it shouldn't come at the cost of your wages. If your employer makes participation mandatory and expects employees to contribute financially, that's a violation.
  • Requiring you to buy your own safety gear. Personal protective equipment (PPE) is a legal requirement that the employer must provide. If you're forced to purchase your own safety gear, you're essentially paying for something you're entitled to for free.
  • Docking your pay for breaks. Philippine law mandates rest breaks throughout the workday. These breaks are considered compensable work hours, and your salary cannot be deducted for them.

What You Can Do

If you suspect your employer is violating Article 116, here are some steps you can take:

  • Talk to your employer: Open communication can often resolve the issue. Explain your understanding of Article 116 and how the employer's actions are affecting you.
  • Document everything: Keep a record of any pay deductions, forced contributions, or instances where you were pressured to give up part of your wages.
  • Seek help: The Department of Labor and Employment (DOLE) is there to assist you. You can file a complaint with your nearest DOLE office. https://www.facebook.com/laborandemploymentph/

Remember, a fair day's work deserves fair pay. Don't be afraid to stand up for your rights!

Important Note: This blog serves as a general information source and should not be taken as legal advice. If you have specific concerns regarding your employment situation, consult a lawyer specializing in labor law.