Book III — Conditions of Employment
Article 114Deposits for loss or damage.
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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