Article 105Direct Payment of Wages

Wages shall be paid directly to the workers to whom they are due, except: (a) In cases of force majeure rendering such payment impossible or under other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be paid through another person under written authority given by the worker for the purpose; or (b) Where the worker has died, in which case, the employer may pay the wages of the deceased worker to the heirs of the latter without the necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons.

If any of the heirs is a minor, the affidavit shall be executed on his behalf by his natural guardian or next-of-kin. The affidavit shall be presented to the employer who shall make payment through the Secretary of Labor and Employment or his representative. See Sec. 7 of R.A. No.

6727 (1989), Wage Rationalization Act, which provides that "[u]pon written permission of the majority of the employees or workers concerned, all private establishments, companies, businesses, and other entities with twenty five (25) or more employees and located within one (1) kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees through any of said banks and within the period of payment of wages fixed by Presidential Decree No. 442, as amended, also the Labor Advisory on Payment of salaries thru Automated Teller Machine (ATM) (1996), which allows payment through ATM of banks provided the following conditions are met: (1) The ATM system of payment is with the written consent of the employees concerned; (2) The employees are given reasonable time to withdraw their wages from the bank facility which time, if done during working hours, shall be considered compensable hours worked; (3) The system shall allow workers to receive their wages within the period or frequency and in the amount prescribed under the Labor Code, as amended; (4) There is a bank or ATM facility within a radius of one (1) kilometer to the place of work; (5) Upon request of the concerned employee/s, the employer shall issue a record of payment of wages, benefits and deductions for a particular period; (6) There shall be no additional expenses and no diminution of benefits and privileges as a result of the ATM system of payment; (7) The employer shall assume responsibility in case the wage protection provisions of law and regulations are not complied with under the arrangement.

The representative of the Secretary of Labor and Employment shall act as referee in dividing the amount paid among the heirs. The payment of wages under this Article shall absolve the employer of any further liability with respect to the amount paid.