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Ang Batas, Sa Simpleng Salita — your rights, finally explained.

Book III — Conditions of Employment

Article 114Deposits for loss or damage.

PD 442 · Labor Code of the PhilippinesELI5 guide available

ELI5— what this means for you

Employers generally cannot require you to deposit money as security for tools or equipment damage, unless it's a recognized industry practice determined by DOLE. The blanket 'breakage fund' deduction that many employers impose is often illegal.

Key point

Official text — PD 442

Deposits for loss or damage.

No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer, except when the employer is engaged in such trades, occupations or business where the practice of making deductions or requiring deposits is a recognized one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations.

Source: lawphil.net (PD 442 as amended)

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Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.