May an employer temporarily withhold salary without the consent of the employee?

May an employer temporarily withhold salary without the consent of the employee?

Although management prerogative refers to the right to regulate all aspects of employment, it cannot be understood to include the right to temporarily withhold salary/wages without the consent of the employee. To sanction such an interpretation would be contrary to Article 116 of the Labor Code, which provides:

ART. 116. Withholding of wages and kickbacks prohibited. It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the workers consent.

Any withholding of an employees 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 set forth below:

ART. 113. Wage Deduction. No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except:

(a)  In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance;

(b)  For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned; and

(c)   In cases where the employer is authorized by law or regulations issued by the Secretary of Labor.

Absent a showing that the withholding of complainants wages falls under the exceptions provided in Article 113, the withholding thereof is thus unlawful. (SHS Perforated Materials, Inc. vs. Diaz, G.R. No. 185814, October 13, 2010)