Withholding Wages

Dear Atty. Duran-Schulze,

I work for a company as an accounting assistant. My employment contract states that I will receive my salary every 15th and 30th of the month. However, when I decided to resign, my employer informed me that I will not receive my final paycheck until I officially submit my resignation letter, even though I have already given verbal notice of my departure. I am wondering if they are allowed to do that? I need legal advice on this matter, Atty. Thank you!

Dear Writer,

Verbal notice is not an acceptable notice to the employer of resignation. The Labor code is clear that termination by the employee must be made in writing:

ART. 300. [285] Termination by Employee. – (a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. (b) An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes: 1. Serious insult by the employer or his representative on the honor and person of the employee; 118 2. Inhuman and unbearable treatment accorded the employee by the employer or his representative; 3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and 4. Other causes analogous to any of the foregoing.”

Otherwise, the employer may hold the employee for damages.

As an employee, you have the right to demand and receive your unpaid wages, and if your employer refuses to pay, you can seek legal remedies. 

Do you have any further questions that need to be addressed? Talk to our team at Duran & Duran-Schulze Law to know more. You may reach us at (+632) 8478 5826 or +63 917 194 0482 email info@duranschulze.com for more information. 

You may also visit our Legally Sis Podcast channel here:

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