Cash Bond Deduction

Hi,

I am an HR Practitioner and currently employed to a company that deducting cash bond to its employees. I know that employer are not allowed to deduct any amount to employees salary unless mandated by law. I would like to ask, is there any law that is applicable regarding cash bond? The company's main purpose about the cash bond is to ensure that the employees are doing their work well and will exit to the company properly.

how much are we talking here?

for Administrative position- 5,000 to be deducted in 5months every payroll.
For Sales Position - depends on their assigned quota.

Hi,

The only mention of a "Cash Bond" in our Labor Code is that posted by recruitment agencies for them to comply with prescribed recruitment procedures, rules and regulation (Art 31).

In your case, what is the cash bond for? Is it because of a contract for training or seminar that an employee has attended?

And what do you mean by it deducted from employee? Is there a monthly deduction here like SSS and tax? Or is it deducted outright from the last salary of the employee?

Please clarify so we can revert better

first time i've heard of such.. usually cash bonds are paid pag nag resign ka without completing the contract or the period agreed specially kung may training involve.. pero deducting cash bond every payroll.. para saan daw yun? and bakit kayo pumapayag.. What happens don sa ni dededuct after 5 months?

Actually, im just new here in the company, and ngayon lang sila nagkaroon ng HR. Sabi ng OIC, cash bond is for the future negligence of the employee. Nakasira, nagnakaw or nagAWOL, dun sa nadeduct na cash bond dun kukunin yung damage na ginawa ng employee. Walang training or anything na involve, basta magdeduct sila for insurance. Kaya nagulat ako, kasi sa four years ko sa HR Field, ngayon lang ako nakaencounter ng ganito. Tinanung ko yung OIC, kung wala pang nagrereklamo about it, wala pa naman daw kasi sinasabihan daw nila na yung nadeduct sakanila ay ibabalik din once nagresign ng maayos.

if they have the consent of the employees, in writing with signature, then i guess it's legal, kasi nga pumapayag sila.. pero kung walang consent and verbal lang this can be disputed and pwede ireklamo sa dole yan.. bawal dapat yan..

is it ok to put it in the appointment letter? as long as they agree and sign?

then kung hindi sila pumayag, di sila pwede pilitin? kasi as per dole, bawal yun?

I am really confused right now.

(agrees with patok) the company must be very clear on what the bond is for and they need express written authority from the employees for these to be checked-off against their salaries. otherwise, it's illegal.

anjgarces:

As an HR, my stand would be this:

It is clearly stated in the labor code that and employer cannot deduct just anything. Such bond is not legal considering that you do not give any training. Tell your employer that you are violating the labor code. If they still wish to continue, be prepared to be penalized if ever someone would complain.


It is really one of the most difficult situation an HR handles.

If you need support, just contact me. Been in that situation a thousand times

To: HR Adviser

That's also my concern. I've been reading the Labor Code almost a hundred times, and it clearly shows that the company violated such rule. I need to amend everything before conflicts arise.

anjgarces


What I do with that is I confront my immediate boss and prepare for an arguement

cash bonds are illegal. http://sc.judiciary.gov.ph/jurisprudence/2011/november2011/188169.htm

anjgarces wrote:is it ok to put it in the appointment letter? as long as they agree and sign?

then kung hindi sila pumayag, di sila pwede pilitin? kasi as per dole, bawal yun?

I am really confused right now.

GANYAN NA GANYAN DIN ANG NANGYAYARI SA AMIN UNA ANG SABI AS IN CASH BOND LANG PONDO BA MAKUKUHA AGAD PAG NAG RESIGN, TERMINATE,ETC, NGAYON NAG IBA NA HALIMBAWA YOU APPLING FOR SSS LOAN BGO NILKA APRUBAHAN PAPIPIRMAHIN KA NG ATD, AUTHORITHY TO DEDUCT O WAIVER NA KAPAG NA RESIGN KA O TERMINATE DNA NILA BIBIGAY REASON UN DAW ANG IHUHULOG SA MGA LOAN MO TAMA PO BA YUN

good day!
may tanong lang po ako, i work recently sa isang fastfood chain restaurant at ngayn resigned na po ako but the problem is they hold may last salary because i have to pay for the cash bond na 30,000 and since hindi daw po kasi nila ako na deduct nung nag start pa lang po ako..

nag start ako Sep 2013 and resigned this Jan 2014 due to got failed sa isang exam nla internationally. at yun po isa sa mga requirements nila. at ipinag tataka ko lang po since i got failed may exam and need to stop my training period kasama pa din po ba ako sa cash bond na tinutukoy po ng company?

at tama po ba na i-hold nila ang sahod ko its because of the cash bond na tinutukoy nla? ty!

answered your other post