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Is Holding of One Month Salary Legal?

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1 Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 11:10 am

Lyong_Min


Arresto Menor
To whom may it concern,

I already submitted my resignation to my current company last Oct 14, 2013 and its effectivity is on Nov 15, 2013.  And I was informed last SATURDAY (Nov 09, 2013) by HRD that my salary for Nov 15, 2013 and Nov 30, 2013 is already on hold.  

I know that when resigning only your 13th month and TAX refund should be on hold as a security for the employer against unscrupulous employees who will not tender resignation properly, etc.

Is there a LAW on our LABOR CODE that employers can hold one month pay of a resigning employee?  Because on my previous employer the only pay they hold from me is my 13th month and my tax refund.  They did not even hold my 1 month salary.

Hoping for your immediate response about this matter
PATRICK

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2 Re: Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 12:53 pm

Patok


Reclusion Perpetua
It's industry practice to hold last salary, 13th month and other monetary claims when you resign. You have to wait to be cleared (usually 1 to 2 months) before you get this.

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3 Re: Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 2:20 pm

alexisbantilan


Reclusion Perpetua
You can actually contest that it should be given because it was actually worked done even before resignations. Labor provision is that salary should be given twice a month not later than 16 days. It was industry practice only and no basis on labor code.

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4 Re: Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 2:23 pm

HR Adviser


Reclusion Perpetua
Why do you have a salary on November 30 when your resignation is effective November 14?

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5 Re: Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 3:01 pm

Lyong_Min


Arresto Menor
@HR Adviser

Its beacuse of the cut off salary received for 15th came from 26 of the previoud month to 10 of the current month and 11of the current month to 25 is for the 30th.  

@alexisbantilan
Is there a LABOR LAW/CODE being voilated with this kind of practice?

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6 Re: Is Holding of One Month Salary Legal? on Mon Nov 11, 2013 3:08 pm

Lyong_Min


Arresto Menor
I wish that code was written regarding this prtactice to set a BAR on holding last pay. Because there is no standard regarding to how many days should be on hold we when you resign.

And there are even companies/ employers keeps on taking advantage of this flaw.

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7 Re: Is Holding of One Month Salary Legal? on Tue Nov 12, 2013 11:30 am

Patok


Reclusion Perpetua
Companies hold the last salary or last pay so that in case you have any outstanding to pay like tax deficit, loans, etc, they can deduct it to your last pay. It's not as if companies are doing it on purpose. It's part of the clearance process. You can always follow up. In some companies they can release it after 2 weeks upon resignation.

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8 Re: Is Holding of One Month Salary Legal? on Tue Nov 12, 2013 8:52 pm

brat.sky.3


Arresto Menor
Man private companies practice this, Holding of last month salary plus 13th and other monetary benefits mandated your company policies and  by dole. You'll get this after you've been cleared by your company as last pay. However, did you sign any document related to this activity or where you oriented by your company HR regarding this policy? if not, you can inquire at dole..

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9 Re: Is Holding of One Month Salary Legal? on Tue Nov 12, 2013 8:53 pm

brat.sky.3


Arresto Menor
Many private companies practice this, Holding of last month salary plus 13th and other monetary benefits mandated your company policies and  by dole. You'll get this after you've been cleared by your company as last pay. However, did you sign any document related to this activity or where you oriented by your company HR regarding this policy? if not, you can inquire at dole..

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