Bill pe­nal­iz­ing em­ploy­ers for de­layed salaries filed

The Philippine Star - - NEWS -

Manila 1st dis­trict Rep. Manuel Lopez has filed a bill seek­ing to pe­nal­ize em­ploy­ers from both gov­ern­ment and pri­vate in­sti­tu­tions who re­peat­edly fail to pay their em­ploy­ees’ com­pen­sa­tion on the agreed date and time with­out jus­ti­fi­able rea­sons or grounds.

In fil­ing House Bill 6537, Lopez said that the mea­sure seeks to curb the act of em­ploy­ers in de­lay­ing the pay­ment of their em­ploy­ees’ com­pen­sa­tion, by im­pos­ing penal­ties on the em­ploy­ers and their rep­re­sen­ta­tives who do not com­ply with the proper time of pay­ment.

Lopez cited a sur­vey con­ducted by Man­ulife In­vestor Sen­ti­ment In­dex in 2016 which stated that “four in 10 (41 per­cent) Filipino in­vestors carry debt which is the sec­ond high­est in the re­gion af­ter Malaysia.”

The Tondo law­maker pointed out that “one con­tribut­ing fac­tor giv­ing rise to this high pro­por­tion of debt is the late pay­ment of wages and salaries.”

The vice chair of the House com­mit­tee on Metro Manila de­vel­op­ment lamented that “these em­ploy­ees or work­ers in the pri­vate and gov­ern­ment sec­tors con­tinue to ex­pe­ri­ence late pay­ment of their salaries that forced them to in­cur debt just to be able to meet their daily needs.”

He said it is sad that em­ploy­ees do not get to en­joy the fruits of their la­bor be­cause what they earn goes to pay­ing in­ter­est on loans that they in­cur due to de­layed pay­ment of salary.

The bill also pro­vides that this act shall ap­ply to em­ploy­ees whether there ex­ists an em­ployer-em­ployee re­la­tion­ship or not and is ap­pli­ca­ble to all es­tab­lish­ments and un­der­tak­ings whether for profit or not in­clud­ing gov­ern­ment em­ploy­ees, man­age­rial em­ploy­ees, field per­son­nel, sea­sonal or project em­ploy­ees, mem­bers of the fam­ily of the em­ployer who are de­pen­dent on him for sup­port, do­mes­tic helpers, per­sons in the per­sonal ser­vice of another and work­ers who are paid by re­sults as de­ter­mined by the sec­re­tary of la­bor.

The bill, co-au­thored by Manila 2nd dis­trict Rep. Carlo Lopez, im­poses a fine of P100,000 on the pay­roll master if he or she fails to dis­burse the pre­scribed wages and salaries when funds are made avail­able for this pur­pose.

How­ever, if the pay­roll master fails to in­form the em­ployer re­gard­ing the ab­sence of fund­ing to sat­isfy the salaries of its em­ploy­ees, he or she shall be im­posed a fine P200,000.

The bill also pro­vides that the em­ployer shall be li­able with the pay­roll master for fail­ure to pay wages and salaries with­out any jus­ti­fi­able rea­son and the em­ployer shall be im­posed a fine of P500,000 and the sus­pen­sion of busi­ness op­er­a­tion for 30 days for the first of­fense.

For the sec­ond of­fense, a fine of P1 mil­lion and ces­sa­tion of busi­ness op­er­a­tions for 90 days will be im­posed on the em­ployer, while a fine of P3 mil­lion and per­pet­ual ces­sa­tion of busi­ness op­er­a­tions shall be im­posed on the em­ployer for the third of­fense.

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