Department of Labor and Employment(DOLE)

Dear NELSON MANGUBAT, Thank you for your request dated Jan 04, 2020 01:38:31 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for CLARIFICATION ON ARTICLE 114 OF LABOR CODE. SECTION 14. Deduction for loss or damage. States to wit: “Where the employer is engaged in a trade, occupation or business where the practice of making deductions or requiring deposits is recognized to answer for the reimbursement of loss or damage to tools, materials, or equipment supplied by the employer to the employee, the employer may make wage deductions or require the employees to make deposits from which deductions shall be made, subject to the following conditions: (a) That the employee concerned is clearly shown to be responsible for the loss or damage; (b) That the employee is given reasonable opportunity to show cause why deduction should not be made; (c) That the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and (d) That the deduction from the wages of the employee does not exceed 20 percent of the employee's wages in a week.” Based on the foregoing, the word recognized in the section refers to function of a regulatory agency; in this case it refers to DOLE. However, for check and balance, the court in some instances (if challenged) may also perform this function. But it can never be the workers nor the employers who will regulate for themselves or recognize which items may be covered by the said deductions. We hope that we have addressed your concerns. For further inquiries, you may reach us through this numbers DOLE Hotline 1349 or 8527-3000 loc. 303/307. Marco Antonio S. Valeros, MD FOI Decision Maker