Use of Company-Issued ATM Cards After Resignation: Employee Rights in the Philippines

Executive summary

In the Philippines, most wages (including final pay) are released through payroll ATM accounts/cards arranged by the employer with a partner bank. After an employee resigns, three legal regimes matter: (1) the Labor Code and DOLE rules on wages, deductions, and final pay; (2) private law on contracts and property (who owns the card and account); and (3) data privacy and banking rules on account security. In short: (a) your wages and final pay belong to you, (b) employers may require the return of a company-owned ATM card as part of clearance but cannot unlawfully withhold wages to force compliance, and (c) banks control the status of the account itself, which may be converted, maintained, or closed according to bank policy once employment ends.

Key definitions

Payroll ATM card – a bank card linked to an account used to credit wages. The card is the bank’s instrument; the account is either (i) an account under the employee’s name (the most common) opened through the company’s payroll facility, or (ii) a pooled/company account with sub-ledgers (less common).
Final pay – includes unpaid wages, pro-rated 13th month pay, cash conversion of unused and commutable leaves, and other amounts due under law, contract, or company policy; net of lawful deductions.
Company-issued card – colloquial term for a payroll card arranged by the employer. It does not automatically mean the employer owns the account.

Who owns what?

The ATM card
- Usually issued by the bank to the named employee. Even if routed via HR, the medium remains the bank’s property and is personal to the cardholder.
- Some employers issue a company property card (e.g., stored-value card or a card the company keeps and rotates). In that setup, the employer can require its return as company property.
The payroll account
- Most common: an individual account in the employee’s name, merely opened under the employer’s payroll arrangement. On separation, the employer asks the bank to delink the account from the payroll facility; the bank may convert it to a regular deposit account or close it under the account’s terms.
- Less common: a company-controlled pooled account. Wages are still your property once credited, but the mechanism for access may be governed by company policy and bank agreements.

Practical test: Look at the card and your bank enrollment form. If the account name is yours and you can transact directly with the bank (change PIN, report loss, request statement), it’s almost surely your personal account.

Core employee rights after resignation

Right to receive final pay in full and on time
- You are entitled to full payment of all amounts due, net only of lawful deductions (tax, government-mandated contributions where applicable, or deductions you validly authorized in writing, or those allowed by law/company policy after due process—for example, proven loss or damage).
- Employers must not unreasonably delay final pay as leverage to force the return of an ATM card or completion of clearance. They may use offsetting only within the limits of wage-deduction rules and written authorizations.
Right to an alternative payout method
- If your payroll card/account is closed or delinked before final pay is released, the employer must provide a reasonable alternative (e.g., credit to a different account you designate, check, or cash disbursement against ID and acknowledgment). Conditioning release solely on the old ATM’s reactivation or physical surrender (when not company property) is improper.
Right to bank confidentiality and account control
- Your PIN and credentials are strictly personal. No employer may demand your PIN or require you to surrender it. If the card is truly company property, you may be required to return the plastic, not your PIN.
Right against unlawful deductions
- Deductions for the “cost of the ATM card,” “failure to return,” or “administrative fees” are only lawful if (a) allowed by law/policy and (b) covered by your written authorization or due process (for loss/damage actually attributable to you). Blanket or punitive deductions are not allowed.

Employer prerogatives and limits

Clearance procedures: Employers can require the return of company property (ID, tools, company-owned card) and settlement of accountabilities. They cannot (i) indefinitely withhold earned wages, (ii) require surrender of a personal card that doubles as your bank account access, or (iii) keep a card to control your wage withdrawals post-separation.
Timing of deactivation/delinking: Employers may instruct the bank to stop future payroll credits and delink the account from the payroll program effective your separation date. They should coordinate the final pay timeline to avoid stranding your funds.
Documentation: Employers should provide a breakdown of final pay and lawful deductions, plus certificates (COE, tax forms) within a reasonable timeframe.

What happens to the ATM card and account at separation?

Scenario A: Individual payroll account in the employee’s name (typical)

Card: You keep it.
Account: Bank delinks it from payroll; it may continue as a regular deposit account (with new fees/minimum balance rules) or be closed if dormant or per your instruction.
Final pay: Employer can still credit that same account or use an alternative method. The employer has no right of access to your account after delinking.

Scenario B: Card is company property / stored-value wage card

Card: Return required upon separation.
Account/wallet: May be closed by the employer or the bank; any residual balance must be remitted to you through another channel.
Final pay: Must be released through a new, accessible method.

Scenario C: Card lost/unreturned

If the card is your personal bank card, you should immediately report loss to the bank to block it and request replacement. The employer cannot charge you for the bank’s fees unless you agreed.
If the card is company property, the employer may charge documented replacement cost if (i) policy says so, (ii) you were informed, and (iii) you consented (or after due process for negligence). Even then, only the actual, reasonable cost should be deducted.

Lawful vs. unlawful employer practices (post-resignation)

Generally lawful

Requiring return of company-owned card as part of clearance.
Delinking a personal payroll account from the company’s payroll arrangement on separation.
Charging the documented replacement fee for a lost company-owned card, with your prior written consent or after due process.
Releasing final pay by check or to a different account if the old payroll channel is not available, with reasonable notice.

Generally unlawful or risky

Withholding final pay solely because an employee hasn’t returned a card that is actually a personal bank card.
Demanding the employee’s PIN or card credentials.
Deducting broad “administration” or “liquidated damages” amounts without a specific legal basis, proof, and written authorization.
Keeping an employee’s personal ATM card during employment to control withdrawals.

Data privacy and security considerations

PINs and OTPs are strictly confidential. HR or payroll must never request or store them.
Card numbers and account details are personal data; employers must minimize access and retain only what is necessary for payroll.
Upon separation, employers should purge unnecessary copies of personal financial IDs consistent with retention policies.

Best-practice timeline for a smooth separation

Before last day
- Confirm whether the card is company property or a personal bank card.
- Ask HR: Will final pay be credited to the same account? If not, provide a new account or request a check.
- Resolve loans/advances; clarify any deductions and provide/seek written authorizations where needed.
On/after last day
- If the card is company-owned, return it and secure a receipt.
- If personal, keep it and liaise directly with the bank about conversion/closure.
- Request a final pay computation and disbursement schedule, plus your COE and tax forms when due.
If there’s a dispute
- Write HR/payroll formally, citing the amount due and the reason you believe withholding is improper.
- Escalate to the company’s grievance mechanism.
- If unresolved, you may file a request for assistance/complaint with the appropriate government office or seek legal counsel.

Frequently asked questions (FAQ)

1) My employer says I must return the “company-issued ATM card” before they release my final pay. Is that legal?

If the card is company property, the return requirement is fine—but holding your earned wages solely for that reason is improper. They should release via another channel once you’ve completed standard clearance steps (and they may deduct the documented replacement cost if you refuse to return a company-owned card according to valid policy). If it is your personal bank card, they cannot compel its surrender to release wages.

2) The payroll account was closed before my final pay. Can they insist on reusing that same account?

No. They must provide a reasonable alternative (another bank account of yours, check, or cash), with proper documentation.

3) Can my employer deduct the cost of a lost ATM card from my final pay?

Only if (a) the card is company property, (b) the actual replacement cost is documented and reasonable, and (c) there is prior written consent or due process establishing your accountability. Otherwise, no.

4) Can my employer see my balance or transactions?

Not if it’s your individual bank account. They have no access and must not ask for your PIN/OTP.

5) I still have money in the card after separation. Whose money is it?

Yours. Coordinate with the bank on continued access, conversion to a regular account, or withdrawal/closure per bank rules.

Practical checklist for employees

Verify whether the card is company property or your personal bank account card.
Request the final pay breakdown and payment date, plus the disbursement method.
If card is company property, return it and obtain a turnover receipt.
If personal, decide whether to keep the account (accept new fees) or close it after withdrawing funds.
Keep copies of payslips, IDs, and any written authorizations for deductions.
If delayed or withheld, formally demand release and escalate if needed.

Guidance for employers (policy language you can adapt)

Clarify in writing whether payroll cards are company-owned or employee-owned.
State that final pay will be released within a defined period after clearance, and list acceptable alternate payout methods if the payroll account is unavailable.
Provide a lawful deductions section: itemize what may be deducted, require written consent, and specify due-process steps for losses/damages.
Prohibit the collection of PINs/OTPs and restrict access to card data to payroll staff on a need-to-know basis.
Coordinate with the bank to delink accounts on separation without stranding funds.

Bottom line

Your wages and final pay are yours and may not be unlawfully withheld just to force the return of an ATM card.
Return company property when required—but employers must still release what is due, using an accessible method.
Protect your banking credentials and coordinate directly with the bank about your account’s status after you leave.
When in doubt, put everything in writing and ask for a clear breakdown of any deductions and the payout timeline.