Direct payment of wages.
Section 10
SEC. 10. Direct payment of wages.- Payment in legal tender: Except as herein otherwise provided, wages payable in money shall be paid in legal tender of the Philippines, and it shall hereafter be unlawful to pay such wages in the form of prommissory notes, vouchers, coupons, tokens or any other form alleged to represent legal tender; In accordance with such regulations as the Secretary of Labor may prescribe, the payment of wages may be made by bank check or postal check or money order in cases in which payment in such manner is customary or is necessary because of special circumstances. Wages, including wages which may be paid retro actively for whatever reason, shall be paid directly to the employee to whom they are due, except: In cases where the employee is insured with his consent by the employer, the latter shall be entitled to deduct from the wage of the employee the amount paid by the employer for premiums on the insurance; In cases of force majeure rendering such payments impossible; and In cases where the right of the employees or his union to check-off has been recognized by the employer or authorized in writing by the individual employees concerned. An employer may pay the wages of a deceased employee to the heirs of the latter, without the necessity of intestate proceedings, as hereinafter prescribed. The heirs of a deceased employee, 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 in his behalf by his natural guardian or next of kin. The affidavit shall be presented to the employer who make payment through the Secretary of Labor or his representative. The representative of the Secretary of Labor shall act as referee in dividing the amount paid among the heirs. The payment of wages under this subsection shall absolve the employer of any further liability with respect to the amount paid. No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. No employer shall in any manner, force, compel or oblige his employees directly or indirectly to make use of any store or services operated by such employer or any other person. No employer shall make any deduction from the wages of his employees, except under authority of law, or require his employees to make deposits from which deduction shall be made, for the reimbursement of loss or damage to tools, materials, or equipment supplied by the employer, unless he shall have first obtained authorization from the Secretary. Such authorization to make deductions from wages or require deposits for reimbursement for the purpose stated shall be based upon a finding that the practice of making deductions or requiring deposits is a recognized one in the trade or occupation concerned; or that it is necessary or desirable in such trade or occupation. The authorization to make such deductions shall be subject to the following conditions: That the employer shall inform the employees in the manner prescribed by the Secretary of Labor of the extent to which and the conditions under which such deductions may be made. That the employee concerned is clearly shown to be responsible for the loss or damage; That such employee is given reasonable opportunity to show cause why deduction should not be made; and That the amount of such deduction is fair and reasonable and shall not exceed the actual amount of the loss or damage, and shall be paid at such rate that the amount deducted in any week shall not exceed twenty per cent of the employee's wages for that week. It shall be unlawful for any person, including but not restricted to, any employer, supervisor, foreman or other representative of an employer, employment agent, labor contractor, recruiter, or any officer or representative of a labor organization, or any officer of the National Government or of any provincial, city or municipal government, or any superintendent, supervisor, foreman, time-keeper, or person in charge in the service of such government, to make any deductions or withhold any amount from the wages of an employee or induce any employee to give up any part of the wages to which he is entitled by force, intimidation, threat or procuring dismissal or in any other manner whatsoever. Wages shall be paid not less often than once every two weeks or twice a month at intervals not exceeding sixteen days. In the case of employees hired to perform a task, the completion of which requires more than a fortnight, and in respect of whom intervals for the payment of wages are not otherwise fixed by collective agreement or arbitration award, it shall be the duty of the employer: To make payment on account not less often than once every two weeks or twice a month at intervals not exceeding sixteen days; and To make a final settlement within two weeks after the completion of the task. Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such rules and regulations as the Secretary of Labor may prescribe. Employer's responsibility of contractor's payroll: Whenever an employer shall contract with another person for the performance of the employer's work, then it shall be the duty of such employer to provide in such contract that the employees of the contractor and the latter's subcontractor shall be paid according to the provisions of this Act and in the event that such contractor or subcontractor shall fail to pay wages to his employee as specified in this Act, such employer shall become civilly liable to the employees of the contractor or subcontractor to the extent that such work is performed under such contract, in the same manner as if said employees were directly employed by such employer. The provisions of paragraph one of this subsection shall likewise be applicable to any person, firm, partnership, association or corporation who, not being employer, and hereinafter referred to as "Indirect Employer", contracts with a contractor for the performance of his work. In the cases prescribed in paragraphs one and two hereof, the employer or indirect employer shall have the right to require the contractor to furnish bond in a sum equal to the cost of labor under the contract, on condition that such contractor shall pay the wages of the employees for the performance of such contract in accordance with the provisions of this Act. Notification of wage conditions.-It shall be the duty of every employer to notify his employees at the time of hiring of the wage conditions under which they are employed, which shall include the following particulars: The rate of wages payable; The method of calculation of wages; The periodicity of wage payment; the day, hour and place of payment; and Any change with respect to any of the foregoing items. This section shall apply to all employees to whom a minimum wage applies under this Act, including those who are paid wages higher than the applicable minimum