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Employee’s Liability for Payment of Employment Bond

(The case of Comscenre Pidls, Inc. vs. Camille Rocio, G.R. No. 222212, January 22, 2020)

Photo from Unsplash | Igal Ness


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 a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is 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.

 


AT A GLANCE:

A resigning employee may be held accountable for the payment of an “employment bond” in accordance with the contractual obligations stipulated within the employment agreement. Such liability emanates from the breach of the minimum employment period clause delineated therein. (Comscenre Pidls, Inc. vs. Camille Rocio, G.R. No. 222212, January 22, 2020)


 

Facts of the case:

 

On April 4, 2011, Comscentre Phils., Inc. and its Country Manager Patrick Boe hired Camille B. Rocio as a Network Engineer.

 

Then, on August 5, 2011, Camille told her bosses she planned to quit her job, effective September 9, 2011. But before she could leave, Comscentre’s Human Resource Manager Jennifer Hachero and Support Manager Allan Calanog said she had to pay them Eighty Thousand Pesos (P80,000.00) because her employment contract said she had to work for at least twenty-four (24) months before resigning.

 

On August 24, 2011, Camille emailed Comscentre’s Australian Human Resource Manager, Lianne Glass, to ask about the “employment bond.”

 

The very next day, August 25, 2011, Hachero sent Camille a letter asking her to explain why she talked directly to Manager Glass about her concerns and why she allegedly went around her colleagues’ workstations during work hours to discuss her resignation. The letter also said Camille was already put on preventive suspension.

 

On August 29, 2011, Camille gave her explanation. Then, on September 2, 2011, there was a meeting to discuss the situation.

 

Following this, on September 9, 2011, Camille received a letter saying she was suspended without pay from August 25, 2011, to September 9, 2011.

        

Then, on September 16, 2011, Camille filed a lawsuit against her employers. She accused them of unfair treatment, illegal suspension, taking money from her pay without permission, not paying her enough, not giving her proper breaks, and not paying her for holidays. She also asked for damages and for her legal fees to be covered.

 

Issue:

 

Does the employer have the right to demand payment of an employment bond from an employee who resigns before completing the specified duration of employment, and if so, under what circumstances is this demand legally valid?

 

Ruling:

 

The dispute arose when the employee resigned from her job before completing the agreed-upon 24-month period specified in her contract, triggering the company’s demand for repayment of an “employment bond” to cover training expenses. When the employee sought clarification from the company’s HR manager, she was suspended for violating company rules. She then sued the company for illegal suspension and unpaid wages, while the company pursued its claim for the “employment bond.”

 

The courts found that the company’s claim for the “employment bond” was directly linked to the employment relationship. The employee was found liable for repayment based on her contract, which she didn’t dispute.

 

In summary, while the company was held accountable for the illegal suspension and unpaid wages, the employee was also held liable for repayment of the “employment bond.”

 

Related Article/s:

ON REQUIRING EMPLOYEES TO POST CASH BONDS OR DEPOSITS

 

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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