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Employer refuses to credit salary for 2months now

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Arresto Menor

I would just like to get anyone's opinion re. my situation. My current employer would not release my salary.

The situation is like this;

I was rehired by a company that I used to work for. I resigned and was cleared from them 2years ago. And Dec. of 2014 I was rehired. Problem started when it was time for the first payout. My account was not credited any amount because they said that my profile was not updated in their system. And then assured me that it will be included in the next scheduled payout date.

On the next payout date, again my account was not credited. This time they said that there should be money credited since according to their records I am included on the payout list. But sadly no it did not happen.

Next update I got was I was advised that payroll is hesitating to release my pay because they found out that I have a previous unpaid loan from their former partner company 2years ago(the year I resigned from them).

They asked if I have done my exit clearance...and I said yes I did. It even says that I am cleared from any accountability from the company. And I have never received any notification from them that I still have a balance. The process was if you have a loan and the employee resigns, the final pay will then be credited as payment to the loan. I never even bothered to ask about my final pay since I know that all will be used for the loan.

But now, they are saying that I have a balance and wanted me to get in touch with the loan company. They asked for me to request for a clearance from the loan company in order for them to release my current pay.

At the loan company, they were surprised to hear from me. Indeed there is a balance. However they cant release a clearance until it is fully paid. The balance by the way is a whopping amount that I have no means of paying off in an instant. I wasn't even aware that there is still a balance until they informed of it. I did receive a letter from the loan company a year after I resigned and I advised them to get in touch with the company. Because what I thought then was it was all ok, since I was given clearance already.

So as of this writing, my employer implemented a 70/30 rule on my salary. Stating that it is automatic in the system. 70% as salary deduction to payoff the loan, and only 30% will be credited to the employee.

They have not released 2 out of 4 of my salary. 2 were released applying the 70/30 rule. And the other two is still pending with no clear explanation as to why it is not being credited.

I am not trying to run away from any obligations whatsoever, if indeed there is a balance then I would have to deal with that. BUT the 70/30 rule to me is just plain ridiculous. I was not made to sign any agreement regarding that. They just did it. Saying that it is automatic on the system and that it can't be overridden. Plus the fact that the people I seek assistance from, looks at the situation as it is all my fault. And I deserve that. They expect me to continue to work with that arrangement. And I openly told them that it is not feasible with all the expenses I have to even come to work. I was unable to report for a couple of days because I had to find ways to get some money in to last for the week. And then when I came back, I was told that they can terminate my employment due to attendance.

So that is the story. At least one side of the story. Below are my questions and I hope that I can hear from you legal experts out there your opinion on the matter.

These are my questions re. the situation:
• What does "cleared from any accountability from the company" really mean? Does getting a clearance from them 2years ago even have a factor in this case?
• Is it really indicated in the PH labor laws that an employer can decide to withhold 70% of their employees salary and just give 30%?

Thank you in advance.

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they can deduct only if you gave written authorization that they can do so.

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Reclusion Perpetua
Did you allow or approve in writing this 70/30 rule?

Besides, bawal ang deductions in excess of 20%.

You can check with DOLE.

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Arresto Menor
I did not sign or agree to the 70/30 rule. They just told me verbally that that is what will happen until the loan company gives clearance that its paid off.

Unless they use the loan form 2 years ago that authorizes the company to deduct. But even that form doesnt indicate a 70% deduction.

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Arresto Menor
Just an update. I was able to view company online payslip. My account was credited for this payout the remaining 30% of total income.

And to my surprise, i saw another payslip dated december last year. This is the one that they have not credited to my account yet. But it shows now on the payslip the total for 2 pay periods, then the deductions(70%), and the remaining 30%.

But my account was not credited then.

What is the right thing to do here? NLRC? Do I have a chance of getting something back here?

I sent an email to ask for any documentation stating the 70% deductions. No response from them on that.

I did not sign anything. I was just told by HR that is what will happen.

Appreciate all the info and help you people provide.

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