Published — February 20, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: Payment of salary, and prohibitions regarding wages
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Employers in the private sector are highly encouraged to communicate to their employees the benefits of using transaction accounts for receiving wages and other remunerations.
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Employers may assist employees who have no existing transaction accounts in applying for transaction accounts which can be used for the payment of their wages and other monetary benefits.
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Employers shall endeavor to provide their employees who have existing transaction accounts the option to receive their wages and other monetary
The Department of Labor and Employment issued an advisory to encourage and enable all private establishments to timely pay wages and other monetary benefits through transaction accounts, to afford their employees access to formal financial services for the promotion of their welfare, to reduce the costs and risks of physical cash disbursements, and to promote digital payments as a safer alternative to the physical exchange of bills and coins, thereby reducing physical contact and minimizing transmission or spread of viruses such as COVID 19.
Labor Advisory 26 Series of 2020 provides that:
In an effort to promote the use of transaction accounts as a preferred mode of payment monetary benefits on account of its advantages in terms of safety, security, and financial inclusivity, employers in the private sector are highly encouraged to explore and/or undertake the following initiatives in support thereof:
- Communicate to their employees the benefits of using transaction accounts for receiving wages and other remunerations;
- Assist employees who have no existing transaction accounts in applying for transaction accounts which can be used for the payment of their wages and other monetary benefits. Employers may recommend a bank account (such as a BDA) or e-money account taking into consideration the transactional needs of their employees and the payment arrangement of the employers with their bank or EMI, if any;
- Endeavor to provide their employees who have existing transaction accounts the option to receive their wages and other monetary benefits in their existing transaction accounts held in a PESONet-participating bank. If providing such option is not yet feasible, assist them in opening transaction accounts in the bank or EMI where the employer maintains an account;
- Require their partner banks or e-money issuers (EMIs) to provide their employees with information on the features of their transaction accounts and updated list of nearest financial service access points;
- Ensure that opening, maintaining, and usage of transaction accounts shall in no case result in any additional expenses/fees or diminution of wages and other monetary benefits being received by the employees;
- Ensure compliance with wage protection provisions of laws and regulations; and,
- Issue to their employees payslip or a record of payment of wages and other monetary benefits as well as deductions for a particular period.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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