I just want to ask legal advice regarding to the story of one of my friends. My friend is working at one of the electronic companies here in the philippines as PCB Lay-out engineer for more than 3 years now. When they hired by the company 3 years ago they have a binding contract of 3 years and failed to comply with the contract they need to pay Php60,000.00. This contract was lapses this year only. My friend main function is PCB lay-out engineer/programmer in their department. My friend is one of the outstanding employees of their department, lately several employees from their department with the same position had resigned after they finished their contract due to big opportunities awaits them abroad and local employment in Manila.
What happen was some employees including my friends offered by the company to give an allowance of Php4,500.00 monthly which will not reflect to their paysli or on their basic salary so that no tax tobe collected this will be given to them in cash. but they are binded again for 3 years failure to meet the 3 years contract would deemed for them to return all the allowances issued by the company from the time they started to receive such amount.
My question is, is it legal that the allowances given by the company can put a binding contract? my friend told me that they do this agreement to avoid resigning of good employees from their company. Are there any violations from the company by giving an allowance to the employees with binding contract?
thank you and more power!