THE Department of Labor and Employment (DOLE) issued Labor Advisory No. 026 series of 2020 on Aug. 3, 2020 encouraging private firms to utilize transaction accounts to pay employees’ wages and other monetary benefits.
Pursuant to Article 5 of the Labor Code as amended, the advisory aims to enable private companies to pay wages and other monetary benefits without delay and to give employees access to financial services for the promotion of their welfare.
Dir. Cyril L. Ticao of DOLE 6 urged private firms to promote digital payments as a safer alternative to physical exchange of bills and coins since it reduces physical contact and minimizes transmission or spread of viruses. Transaction accounts also reduce costs and risks of physical cash disbursements as well as lessen the threat amidst the COVID-19 pandemic.
“Considering the security, safety and financial inclusivity of using transaction accounts, the DOLE suggests through Labor Advisory No. 26 that private sector employers explore this medium as a preferred mode of payment of wages and other monetary benefits,” added Ticao.
Employers may give employees with existing accounts the option to receive their wages and other monetary benefits through their accounts or if not feasible, assist the employees in opening transaction accounts in the bank or any e-money issuers where the employer maintains an account.
Ticao reminded employers that there should be no additional expenses or fees or diminution of wages and other monetary benefits in opening an account. Ticao added that in using this medium, employers are still required to comply with existing laws including the issuance of payslips or records of payment and deduction./PN
