Dante E.

Paguntalan BSIT 3-E

Claims is assured. Article 110 of the Labor Code, as amended by Republic Act No. 6715, expands
worker’s preference to cover “other monetary claims.

When Article 110 applies

The provisions of article 110 of the labor code is applicable only after formal declaration
bankruptcy or judicial declaration order. As held in one case, the provisions of article 110 of the
labor code giving workers the right preference over the properties of their employer may not be
invoked by workers, in the absence of judicial declaration order.

Article 111. ATTORNEY’S FEES.

(a) In Cases of unlawful withholding of wages the culpable party may be

assessed attorney’s fees equivalent to ten percent of the amount of wages
recovered.

(b) It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of the wages, attorney’s fees,
which exceed ten percent of the amount of wages recovered.

Attorney’s fees defined and distinguished from councel fees.

Attorney’s fees is the charge to a client for services performed to the client,
such as an hourly fee, a flat fee, or a contigent fee.Counsel fees which obligation of a client in
favor of his lawyer should be distinguished from attorney’s fees in the concept of damages which
the court may award in favor of the prevailing party.

Attorney’s fees limited by the Labor Code.

Attorney’s fees are limited by Article 111 of the Labor Code. It provides that. It
shall be unlawful for any person to demand or accept, In any judicial or administrative
proceeding for the recovery of the wages, attorney’s fees, which exceed ten (10%) of the amount
of wages recovered. However, in cases unlawful withholding of wages, the culpable party may be
assessed attorney’s fees equivalent to ten (10%) of the amount of wages recovered.

ARTICLE 112 NON-INTERFERENCE IN DISPOSAL OF WAGES.

No employer shall limit or otherwise interfere with the freedom of any employee
to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to
purchase merchandise, commodities or other property from the employer or from any other
person, or otherwise make use of any store or services of such person.

Rationale for rule on non-interference of wages

Article 112 of the labor code emphasizes the rule of non-inference by the employer in the
disposal of wages by the employee. Logically because the wages earned by the employee is
already his own money. Spending any part or all of it is at the discretion of the employee. The
employer has no business on how the employee shall dispose of what he has earned.

ARTICLE 113. WAGE DEDUCTION.

No employer, in his 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 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 the employer is authorized by the law or regulations issued by
the secretary of labor.

No wage deduction except in instances by allowed by the law

As a general rule, no wage deduction is allowed by law except in instance allowed by it,
to wit: (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; (b) for union
dues in cases where the right of the worker 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. Moreover an employee’s
payment of obligation to a third person is deductible from the employee’s wages if the deduction
is authorized in writing by the employee. The employer may agree to make the deduction but is
not obliged to do so. He must not receive any pecuniary benefit, directly or indirectly, from the
transaction.

Civil Code provision allowing withholding on wages

There are two labor provision of the civil code authorizing withholding or deduction of certain
amount ‘s from the laborers wages. Wihtholding of the wages, except for debt shall not be made
by the employer. The laborer’s wages shall not be subject to execution or attachment’ except for
debt incurred for food, shelter, clothing and medical attendance.

Other statutory allowable deductions from wages

SSS,GSIS, Medicare and Pag-ibig contributions are allowed to be deducted by law.

So are withholding taxes under the national internal Revenue Code of 1997. Where the right of
the employees or his union has been recognize.