CASE DIGEST: PLDT v. Estranero

 




PHILIPPINE LONG DISTANCE TELEPHONE COMPANY and/or ERNANI TUMIMBANG, petitioners,
vs. HENRY ESTRANERO, respondent
G.R. No. 192518                |              October 15, 2014

 


FACTS:

On July 1, 1995, PLDT employed the respondent as an Auto-mechanic/Electrician Helper until his separation from the service in 2003.

In the year 1195, PLDT adopted a company-wide Manpower Reduction Program, aimed at reducing its work force. By virtue of the MRP, a number of positions were declared redundant. Among those gravely affected by the MRP was the Fleet Management Division where respondent was assigned.

Attracted by the separation pay offered by the company, the respondent expressed his conformity to his inclusion in the MRP.

The respondent was entitled to 200% of his basic monthly salary for ever year of service by way of redundancy pay or equivalent to P240,000.00. In addition, he was also entitled to other benefits he has earned for the years prior to, and during the year of his actual separation. Thus, his aggregate redundancy pay plus other earned benefits amounted to P267,028.37.

However, the respondent had outstanding liabilities arising from various loans he obtained from different entities, namely: the Home Development Mutual Fund, PLDT Employee Credit Cooperative, Inc., PLDT Service Cooperative, Inc., Social Security System and the Manggagawa ng Komunikasyon sa Pilipinas, which summed to P267,028.37. Thus, PLDT deducted the said amount from the payment that the respondent was supposed to receive as his redundancy pay.

 As a result, repondent’s take home pay showed in the amount of “zero pesos”. This prompted the respondent to retract his availment of the separation pay package offered to him. However, despite said retraction, respondent was no longer allowed to report for work.

ISSUE:

Whether or not the petitioners can validly deduct the respondent’s outstanding loan obligation from his redundancy pay

RULING:

It is clear in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except in cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment. Meanwhile, the Omnibus Rules Implementing the Labor Code provides that deductions from the wages of the employees may be made by the employer when such deductions are authorized by law, or when the deductions are with the written authorization of the employees for payment to a third person. Thus, any withholding of an employee’s wages by an employer may only be allowed in the form of wage deductions under the circumstances provided in Article 113 of the Labor Code, as well as the Omnibus Rules implementing it. Further, Article 116 of the Labor Code clearly provides that it is unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker without the worker’s consent.

In this case, the deductions made to the respondent’s redundancy pay do not fall under any of the circumstances provided under Article 113, nor was it established with certainty that respondent has consented to the said deductions or that the petitioners had authority to make such deductions. 


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