1) The Philippine legal framework that protects employees

Employee rights in the private sector are anchored on a layered set of rules:

1987 Constitution (Social Justice and Labor provisions): protects labor, promotes “humane conditions of work,” and recognizes workers’ rights to security of tenure, living wage, and self-organization.
Labor Code of the Philippines (Presidential Decree No. 442), as amended: the core statute for wages, working conditions, and termination/resignation rules.
DOLE issuances (Department Orders, Labor Advisories, rules implementing the Labor Code and special laws): detailed administrative guidance on final pay, certificates of employment, labor standards enforcement, OSH, etc.
Special laws that often intersect with workplace abuse and dignity:
- Anti-Sexual Harassment Act (RA 7877)
- Safe Spaces Act (RA 11313) for gender-based sexual harassment in workplaces (and public spaces/online)
- Occupational Safety and Health Law (RA 11058) and implementing rules
- Civil Code provisions on human dignity and damages (notably Articles 19, 20, 21, 26)
- Revised Penal Code provisions that may apply to extreme verbal abuse (e.g., defamation, threats), depending on facts

Who is covered? Most of what follows applies to employer–employee relationships in the private sector (rank-and-file and many supervisory employees). Certain rules differ for:

Government employees (Civil Service rules),
Domestic workers (kasambahay) (RA 10361),
Seafarers/OFWs (POEA/DMW rules, contracts), and
Independent contractors/freelancers (no employer–employee tie, so Labor Code standards may not apply).

2) Illegal salary deductions: what employers can and cannot deduct

A. Core principle: wages belong to the worker

Philippine labor law strongly restricts an employer’s ability to interfere with an employee’s wages. As a general rule, an employer may only deduct from wages when the deduction is:

required or allowed by law, or
authorized by the employee in writing for a lawful purpose, or
authorized by a court/competent authority (e.g., garnishment, child support).

If a deduction does not fall into a legitimate category, it is likely illegal—even if the employer calls it a “policy,” “penalty,” or “chargeback.”

B. Common lawful deductions (usually valid)

These are typically permissible, provided they are correctly computed and documented:

Statutory contributions and withholding

SSS, PhilHealth, Pag-IBIG employee shares
Withholding tax (if applicable)
Other government-mandated deductions

Court or government orders

Wage garnishments or levies ordered by a court or government agency
Lawful child support orders, etc.

Union dues/agency fees

When properly authorized under law and/or with required written authorization, depending on circumstance.

Company loan amortizations / salary advances

Usually valid if the employee voluntarily agreed in writing and the accounting is transparent.

Deductions for time not worked

If an employee is absent without leave or has unpaid leave, the employer generally does not have to pay for hours/days not worked (subject to rules on paid leaves/benefits).
This is different from “fines” or “penalties” (discussed below).

C. “Facilities” vs “supplements”: why many deductions are illegal

A frequent source of illegal deductions is when employers charge employees for items that are primarily for the employer’s benefit.

Facilities (limited concept): items like meals or lodging that are necessary for the employee’s subsistence and may be deductible only under strict conditions (e.g., voluntarily accepted, fair and reasonable value, and consistent with regulations).
Supplements: items primarily benefiting the employer (e.g., uniforms required by the job, tools, PPE, work devices) are generally not deductible from wages.

Practical takeaway: If the item is required to do the job and mainly benefits the employer’s operations, charging it to employees through wage deductions is commonly unlawful.

D. Deductions that are commonly illegal (red flags)

These are frequent complaint drivers:

Fines/penalties disguised as deductions

“Late deduction” beyond the pay for actual minutes/hours not worked
“Behavior penalty,” “attitude fine,” “quota penalty,” “customer complaint fine”
“Cellphone use fine,” “talking fine,” “sitting fine,” etc.

Key distinction:

Deducting pay for time not worked (e.g., unpaid tardiness minutes) can be lawful.
Imposing an additional punitive fine taken from wages is typically unlawful unless specifically authorized by law.

Cash bond / deposit / “security deposit” Employers sometimes require employees to post a “bond” and deduct it from salary. The Labor Code allows “deposits” only in narrow circumstances (historically tied to jobs where employees regularly handle money or property and where regulations allow it), and it must meet strict conditions. Blanket “cash bond” practices are legally risky and often challenged.
“Breakage,” “loss,” “damage,” “shortage,” and “company property” deductions Employers cannot simply deduct the cost of losses/damage at will. Deductions for loss or damage are highly regulated and generally require:

Proof of actual loss/damage,
Proof of employee responsibility/fault (not mere suspicion), and
Due process (notice and opportunity to explain/contest).

Cash shortages (e.g., cashier variance) are especially sensitive. Employers often need to show:

Proper cash-handling controls,
The employee’s accountability for the cash drawer,
Investigation and hearing, and
That the shortage is not due to system weaknesses or shared access.

Training costs and “training bond” deductions Employers sometimes deduct “training expenses” when an employee resigns early. In principle:

Reasonable training bonds may be enforceable as a contract claim, especially for specialized training with clear cost and benefit, but
Unilateral wage deductions to collect disputed training costs are often challengeable. Employers commonly must pursue recovery through proper legal channels rather than simply withholding wages.

Uniform costs, ID fees, medical exam costs, recruitment/placement costs Charging workers for mandatory employer requirements through wage deductions can be unlawful, especially where these are primarily for the employer’s benefit or when the employee did not freely and knowingly consent in a lawful manner.
Withholding wages to force clearance An employer may require clearance procedures (return of equipment, final accounting), but withholding undisputed earned wages as leverage is risky and often improper—especially when delays are unreasonable or used to coerce waivers/releases.

E. What “due process” looks like for contested deductions

When the employer claims the employee caused a loss/damage, minimum fairness typically requires:

Written notice of the charge and the basis (what happened, when, amount, evidence),
Opportunity to explain and present evidence,
Impartial evaluation, and
A decision supported by evidence and consistent with policy and law.

Purely automatic deductions without investigation—especially when multiple people had access/control—are vulnerable to challenge.

F. Evidence employees should keep

For wage deduction disputes, documentation often wins cases. Keep:

Payslips/payroll register screenshots
Employment contract and addenda
Company handbook/policies (especially on cash handling, penalties, bonds)
Written authorizations (or lack thereof)
Incident reports, audit findings, memos
Chat messages/emails about the deduction
Time records (DTR), schedules, overtime approvals
Proof of turnover/return of equipment

3) Workplace verbal abuse: what the law recognizes and what remedies exist

A. What counts as workplace verbal abuse

“Verbal abuse” in workplaces can range from management harshness to unlawful harassment. Legally relevant patterns include:

Repeated screaming, humiliation, insults, name-calling
Threats (termination, violence, retaliation)
Public shaming, degrading remarks, slurs
Discriminatory comments (sexist, homophobic/transphobic, disability-related, HIV-related, pregnancy-related, etc.)
Sexualized comments, jokes, or unwanted remarks
Persistent hostile behavior causing fear, anxiety, or breakdown

Not every rude remark is automatically illegal, but patterns of severe or pervasive conduct can trigger multiple legal consequences.

B. When verbal abuse becomes a labor-law problem (constructive dismissal)

A major labor concept is constructive dismissal: when an employee is forced to resign because continued employment has become impossible, unreasonable, or unlikely, due to the employer’s acts (including abuse).

Philippine jurisprudence often treats the following as constructive dismissal triggers when proven:

Humiliation or grave insult by the employer/authorized representative
Inhuman, unbearable treatment
A hostile environment intentionally created to push the employee out
Repeated harassment, intimidation, or retaliation after raising concerns

Why it matters: If a resignation is legally treated as forced, it can be reclassified as illegal dismissal, potentially entitling the employee to remedies like reinstatement/backwages or separation pay in lieu of reinstatement, depending on circumstances.

C. “Serious insult” and “inhuman treatment” as grounds for immediate resignation

Under the Labor Code rules on termination by the employee (often cited as Article 300, formerly Article 285 in older versions), an employee may resign without serving the 30-day notice when there is:

Serious insult by the employer or the employer’s representative on the employee’s honor and person;
Inhuman and unbearable treatment by the employer or representative;
Commission of a crime or offense by the employer/representative against the employee or immediate family; or
Other analogous causes.

Severe verbal abuse, especially when repeated, public, discriminatory, or threatening, can fall under serious insult or inhuman treatment, depending on proof and context.

D. Specific anti-harassment laws that cover verbal abuse

1) Sexual Harassment in employment (RA 7877)

Covers sexual harassment in work-related settings when unwelcome sexual conduct occurs and is linked to:

A condition for hiring/employment, promotion, or favorable treatment, or
Interferes with work performance, or
Creates an intimidating, hostile, or offensive environment.

Verbal harassment (sexual remarks, propositions, suggestive comments) can qualify.

Employers are expected to maintain mechanisms (commonly through a Committee on Decorum and Investigation) and to act on complaints.

2) Gender-based sexual harassment in the workplace (Safe Spaces Act, RA 11313)

RA 11313 broadened coverage to include gender-based harassment, including many verbal forms, such as:

Sexual jokes and comments,
Persistent unwanted remarks,
Misogynistic, homophobic, transphobic slurs,
Gender-based ridicule or humiliation,
Other conduct that creates a hostile environment based on gender/sexuality.

Workplaces are expected to have policies, reporting channels, and enforcement measures.

E. Civil and criminal angles (when verbal abuse crosses into offenses)

Depending on what was said and how it was done, other laws may apply:

Defamation (slander/libel): If false statements harming reputation are made to others; online posts can raise cyber-related issues.
Threats/coercion: If the abuser threatens harm or uses intimidation to force actions.
Civil Code damages: Even if not criminal, abusive conduct violating dignity or morals can support claims for damages under Civil Code principles (abuse of rights and respect for dignity/privacy).

These paths have different standards of proof and different venues (labor tribunals vs regular courts). It’s common for workplace disputes to primarily proceed through labor mechanisms first when the dispute is rooted in employment conditions and separation.

F. Employer duties and internal procedures

Even when a company has no explicit “anti-bullying” policy, employers are generally expected to:

Maintain workplace discipline without degrading or discriminatory treatment,
Provide internal grievance mechanisms,
Implement legally required anti-harassment measures (especially for RA 7877 and RA 11313 issues),
Prevent retaliation against complainants (retaliation can create separate liability and strengthen constructive dismissal claims).

Retaliation warning signs:

Sudden negative evaluations after a complaint,
Forced transfers/demotion without valid business reason,
Isolation, reduced hours, salary cuts, or public shaming,
Threats of termination for reporting abuse.

G. Evidence to preserve in verbal abuse cases

Contemporaneous notes (date/time, exact words, witnesses)
Emails, chat logs, screenshots
Audio recordings (be mindful of privacy and admissibility issues—context matters)
HR reports, incident reports, medical consultations (if stress-related)
Witness statements (coworkers who saw/heard)
Performance records to counter “poor performance” pretexts

4) Resignation in the Philippines: rules, timelines, and employer obligations

A. Voluntary resignation (ordinary rule)

For a standard resignation not based on just causes:

The employee should provide a written notice at least 30 days in advance (unless a different period is agreed in a contract/CBA, provided it’s not oppressive and is lawful).
The purpose is to give the employer time to find a replacement or transition work.
Employers generally cannot “refuse” a resignation in a way that forces continued employment, but they can hold the employee responsible for failure to render the required notice (typically through a claim for damages in appropriate cases, not through unlawful wage withholding).

Best practice: Submit the resignation letter with proof of receipt (email with acknowledgement or received stamp).

B. Resignation without 30-day notice (immediate resignation)

Permitted when the resignation is due to just causes attributable to the employer (serious insult, inhuman treatment, crime/offense, analogous causes). In these cases:

State the just cause clearly in writing.
Describe key incidents (dates, persons involved).
Preserve proof and witnesses.

C. Resignation vs constructive dismissal: why wording matters

Voluntary resignation: employee leaves by choice.
Constructive dismissal: employee “resigns,” but the law treats it as forced due to employer misconduct.

If the reason for leaving is abuse or illegal wage practices, consider that the legal characterization may affect remedies. Employees often document that resignation is due to employer acts (harassment/illegal deductions) to preserve the issue.

D. Final pay: what you’re entitled to receive

Final pay commonly includes:

Unpaid salary/wages up to last day worked
Unpaid overtime/holiday pay/rest day premiums (if applicable)
Pro-rated 13th month pay
Cash conversion of unused service incentive leave (if applicable)
Other earned benefits under contract/CBA/company policy (commissions, allowances that are legally due, etc.)
Refund of deposits (if any were lawfully collected and refundable)

Final pay timing: DOLE guidance commonly sets a 30-day period from separation (unless a faster period is provided in company policy/CBA or special circumstances justify earlier/later processing, but unreasonable delay is risky for employers).

E. Certificate of Employment (COE)

Employees generally have the right to request a Certificate of Employment stating employment dates and position (and, if requested and company policy allows, last salary). DOLE guidance commonly requires issuance within a short timeframe upon request (often cited as within three days).

F. Clearance and turnover

Clearance is a common administrative requirement (returning equipment, settling accountabilities). However:

Clearance should not be used as a tool to coerce waivers or block lawful entitlements.
Employers should not withhold undisputed wages indefinitely due to clearance delays.

G. Common employer tactics and how the law typically views them

“You can’t resign; we won’t accept.” Resignation is a unilateral notice, not a request for permission (except in the sense of agreeing on an earlier release date).
“We’ll hold your last pay because you resigned.” Final pay may be processed with proper accounting, but withholding as punishment or to force silence is legally risky.
“Sign this quitclaim or you get nothing.” Quitclaims can be challenged when they were obtained through pressure, misinformation, or for unconscionably low consideration.
“We will blacklist you.” Retaliatory actions for asserting labor rights can create additional liability.

5) What to do if you experience illegal deductions or verbal abuse

A. Step-by-step: practical enforcement path

Document everything (payslips, messages, incidents, witnesses).
Raise the issue in writing to HR/management (polite, factual, with dates and amounts).
Use internal mechanisms (grievance procedure, CODI for sexual harassment, Safe Spaces reporting channels if applicable).
Consider DOLE’s Single Entry Approach (SEnA) for mandatory conciliation/mediation before formal cases in many situations.
If unresolved, proceed to the appropriate forum:
- DOLE (labor standards enforcement; wage issues; certain money claims), or
- NLRC (cases involving illegal dismissal/constructive dismissal, reinstatement, and many employment disputes).

B. Choosing the right case theory (examples)

Illegal deductions / unpaid wages → money claim under labor standards; possibly wage distortion issues depending on facts (less common).
Harassment leading to resignation → constructive dismissal / illegal dismissal case (if you want to treat it as forced resignation).
Gender-based harassment / sexual harassment → administrative and labor remedies plus potential criminal/civil components depending on facts.
Retaliation after complaint → strengthens constructive dismissal and may support separate violations.

C. What outcomes are typically sought

Depending on the case and forum, remedies can include:

Payment/refund of illegal deductions
Payment of unpaid wages/benefits
For illegal/constructive dismissal: reinstatement with backwages or separation pay in lieu of reinstatement (depending on circumstances), plus possible damages/attorney’s fees when legally justified
Orders to comply with labor standards and implement workplace mechanisms

6) Quick reference checklists

A. Illegal deduction checklist

A deduction is highly suspect if:

There is no law authorizing it, no court order, and no written employee authorization; or
It is a punitive fine; or
It charges you for items primarily for the employer’s benefit (uniforms/tools/PPE); or
It is for loss/damage without due process and clear proof; or
It is used to punish resignation or silence complaints.

B. Verbal abuse escalation checklist

Consider escalation when:

Abuse is repeated, public, humiliating, discriminatory, or threatening
It affects health and work performance
HR ignores complaints or retaliates
You are being pushed to resign, demoted, isolated, or deprived of pay/hours after reporting

C. Resignation checklist

Send a written resignation notice (email or letter) and keep proof of receipt
State last working day (or immediate resignation with just cause, if applicable)
Turn over work and return company property with documentation
Request final pay computation and COE in writing
Keep copies of clearance/turnover forms and final payslip

7) Key takeaways

Salary deductions are the exception, not the rule. If a deduction isn’t clearly authorized by law, a court, or valid written consent—and especially if it’s punitive—it is often unlawful.
Verbal abuse can be more than “bad management.” When severe or pervasive, it can support labor claims (including constructive dismissal) and may implicate anti-harassment laws, civil damages, or even criminal offenses in extreme cases.
Resignation has rules—but employees also have exit rights. Standard resignations generally require 30 days’ notice, but immediate resignation is allowed for serious employer misconduct. Final pay and COE obligations remain.