8/10/2019 Dentech vs NLRC

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Dentech vs. NLRC

172 SCRA 588 | April 19, 1989

Facts:

Benjamin Marbella, Armando Torno, Juanito Tajan, Jr. and Joel Torno were employed as

welders, upholsterers and painters by of Dentech Manufacturing Corporation, a firmengaged in the manufacture and sale of dental equipment and supplies. However, they

were dismissed from the firm due to their alleged abandonment of their work without

informing the company about their reasons fordoing so. Marbella et al filed a complaint

with the arbitration branch of the NLRC for illegal dismissal and violation of Presidential

Decree No. 851. Among other things they sought the payment of the cash bond they filed

with the company at the start of their employment.

Issue:

Whether or not Marbella et al are entitled to the refund of the cash bond they filed with

Dentech at the start of their service.

Held:

The Court held that refund of the cash bond filed by Marbella et al is in order.Article 114 ofthe Labor Code prohibits an employer from requiting his employees to file a cashbond or to

make deposits, subject to certain exceptions: "when the employer is engaged in such

trades, occupations or business where the practice of making deductions or requiring

deposits is a recognize done, or is necessary or desirable as determined by the Secretary of

Labor in appropriate rules and regulations."Dentech have not satisfactorily disputed the

applicability of this provision of the Labor Code tothe case at bar and further failed to show

that the company is authorized by law to require the private respondents to file the cash

bond in question. Its to the effect that the proceeds of the cash bond had already been given

to a certain carinderia to pay for the accounts of the private respondents there in does not

merit serious consideration. In fact, no evidence or receipt has been shown to prove such

payment.