GROUP III

Articles 102-111
Labor Code of the Philippines
 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.
Legal Tender
- currency sufficient under the law to effect payment of a debt or
obligation (e.g. notes, coins, currencies issued by BSP)
Principle of “fair day’s wage for a fair day’s labor” basis
of payment

- “No-work-no-pay”
- The payment of wages of a worker is based primarily on the work
performed by him for the benefit of the employer
 Payment of wage through ATM of Banks
Payment is allowed through automated teller machine provided the
following conditions are complied with:
• With the written consent of the employee concerned;
• Employees are given reasonable time to withdraw their wages;
• The system allows employees to receive wage within the period and in
the amount prescribed under the Labor Code;
• There is a bank or ATM facility within a radius of 1km from the workplace;
• Upon request of the employee, the employer shall issue a record
evidencing the payment of wages, benefits and deductions for a
particular period;
 Payment of wage through ATM of Banks
Payment is allowed through automated teller machine provided the
following conditions are complied with:
• The ATM system will not result in diminution of benefits and
privileges of the employee and neither the latter incurs additional
expenses in the process; and
• The employer shall assume full responsibility in case the wage
protection provision of law and regulations are not complied with
under the arrangement.
 Payment by Check
Payment of wages by bank check, postal checks or money order is
allowed under the following circumstances:
• Customary on the date of effectivity of the Code;
• Stipulated in the CBA;
• The following conditions are complied with:
o bank/encashment facility within 1km radius
o no pecuniary benefit by employer from the arrangement
o employee is given reasonable time to withdraw/encash
o with written consent of the employee
 Penalty for Violation
ARTICLE 288. Other Similar Coercions — (Compulsory Purchase of
Merchandise and Payment of Wages by Means of Tokens). — The penalty of
arresto mayor or a fine ranging from 200 to 500 pesos, or both, shall be
imposed upon any person, agent or officer of any association or corporation who
shall force or compel, directly or indirectly, or shall knowingly permit any
laborer or employee employed by him or by such firm or corporation to be
forced or compelled, to purchase merchandise or commodities of any kind.

The same penalties shall be imposed upon any person who shall pay the
wages due a laborer or employee employed by him, by means of tokens or
objects other than the legal tender currency of the Philippine Islands, unless
expressly requested by the laborer or employee.
 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
 Purpose of Frequency of Payment
• to enable the worker to use the money to meet the basic necessities of
life
• enable the worker to defray the daily cost of living free from the
exploitation of loan sharks

Exception:
1. Force Majeure
2. Fortuitous Event
 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.
 Place of Payment
GR: The place of payment shall be at or near the place of
undertaking.
EXCEPTIONS:
1. When the payment cannot be effected at or near the place of work
by reason of deterioration of the peace and order conditions by
fire, flood, epidemic, or other calamity rendering the payment
thereat impossible;
2. When the employer provides free transportation to the employees
back and forth;
3. Under any analogous circumstances, provided that the time spent
by the employee in collecting their wages shall be considered as
compensable hours worked.
Prohibited Places for Payment of Wages

BAR NIGHT CLUB MASSAGE CLINIC

Art. 105. Direct payment of wages
Wages shall be paid directly to the workers to whom they are due, except:
a. 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
b.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
 Payment made to another person
a) Authorized in writing to pay wage to his family;
b) Authorized by law;
c) Payment for insurance premium (under CBA or authorized in writing
by individual-employee); or
d) In case of death of employee
 Payment of wages of deceased employee

HEIR REQUISITE
of age Affidavit attesting their relationship
minor Affidavit in his behalf of his natural guardian or
next of kin

• Innocent spouse will have a share in the decedent’s wages.

Conflicting Claim: Subject of Interpleader
Interpleader
- a proceeding to enable a person to compel parties making the same
claim against him to litigate the matter between themselves.

REQUISITES:
1. The plaintiff must not claim interest in the subject matter or that his
claim is not disputed;
2. There must be at least two or more conflicting claims;
3. The parties impleaded must make effective claims; and
4. The subject matter must be one and the same
 Payment through a Contractor
Leader may receive payment of wages for and in behalf of workers for
services performed not in their individual capacities but as a group
(Bermoso v. Hijos de Escano, 105 Phil. 231).