I hope that this forum will help me resolve the dilemma that I am facing right now. My last pay and Certificate of employment was put on hold by my previous company due to the unsettled balance of an employee who already AWOL last 2010. I was a comaker for his loan which was executed that same year with his reason that his child is sick and needed money for the check up. It is only after he received the loan that I heard that the true reason is that he applied abroad, so I took the initiative of convincing him pay his obligations. He then paid through his wife in monthly installments but the settlement was only between the principal borrower and my employer. The sad thing is that, they did not include me in the settlement agreement. My employer directly received the monthly installment without my consent and without informing me on the status of the loan. They did not also deducted the amount on my bimonthly pay. So I assume that the loan were already settled from 2010 to 2012 which I think is the term of the loan. It is only this month that my employer told me that the principal borrower already stopped on their payments leaving an unsettled amount of Php 16,000.00. They told me that since I am the comaker, they would deduct the whole amount to my last pay and they told me that they cannot issue my Certificate of Employment if it is still unsettled. I am confident that there are lapses on their part and it would be unfair to be deducted on the amount that I did not benefit. With these, I would like to seek your opinion on my rights and legal obligations in terms of my last pay and certificate of employment? Do I have other resort to claim my Certificate of Employment and at the same time not be deducted with the amount? The only document that is written is the loan agreement and the rest of the transactions were done verbally.
Thank You so much and more power!