Employers must pay complete wages and benefits

The contract between employers and employees is a simple covenant, whereby the worker obligates himself to perform the job according to the standards set forth by the employer, and the latter accepts the obligation to pay appropriate compensation in accordance with law, contractual stipulation and generally-accepted standards in the industry and business community. If the worker does not work well, he violates the covenant. If the employer does not pay properly, on time and completely, it also breaches the contract.

Most employers in this country are good and even exemplary businessmen, who all pursue their drive for profit with honor and dignity. There are a few bad eggs however in the corporate world. The problem with some companies is that while management demands total and unqualified obedience to its rules, they violate the minimum wage laws and deny their workers labor standard benefits required by labor laws and social legislations, and even worse, they do not provide a healthy, safe and decent workplace. With due respect, a few employers even commit sexual harassment against their pretty staff. We believe that employers have no moral authority to demand employee discipline if and when they are violators of labor laws. If employers want excellent service, they should pay complete compensation.

In the case of ENLI et al versus M M dela Cruz (GR 225100, February 19, 2020), management received some complaints from customers that messages from them were left unanswered, and that the staff were always late in reporting for work. The employees however filed cases because their salaries were delayed. The owners suspended and later dismissed the Branch Administrator. But the employees were complaining with the barangay about non-payment of their salaries. In the case of AMBM versus Coca Cola (GR 226064, February 27, 2020)) an employee who was separated due a redundancy program was not paid her complete separation pay. A large portion of it was withheld by management for remittance to the BIR. But the Supreme Court held that management was wrong because separation pay for involuntary separation is not taxable.

In the case of S A Inocentes versus R Syjuco Construction ( GR 240549, August 27, 2020), the Supreme Court held that not all construction workers are project employees, and they are entitled to correct minimum wages, overtime pay, thirteenth month pay, holiday pay, holiday premium, service incentive pay and night differential.  In the case of F R versus Stoneleaf Inc, (GR 222416, June 17, 2020), the Supreme Court clarified that an employee who is designated to do administrative and HR work is not managerial. Thus she is entitled to service incentive leave, holiday pay and thirteenth month pay, all benefits for the last three years. The Court rejected management's defense that she is not entitled under Article 2 because she occupied a managerial position. The facts show that her post did not qualify as managerial,

Cases of non-payment of minimum wages can result to a criminal prosecution under Republic Act 8188. The penalty shall be a fine in the maximum amount of a hundred thousand pesos per violation or imprisonment for a maximum of four years or both such fine and imprisonment. On top of the fine and/or imprisonment, the employment shall be liable to pay an amount equivalent to double the unpaid wages and benefits. The employer is a corporation or partnership, the responsible officers shall be held liable, including sending to prison the company president, vice president, CEO, general manager or managing director or managing partner. Violations of SSS laws are also criminal in nature.

I thus call upon all employers to make sure all labor standard benefits are paid properly and on time. It is not because of fear for imprisonment. Paying wages and benefits is the fair, just and proper thing to do.