Practice question
A recruitment agency deducts the compulsory worker’s insurance premium from an OFW’s salary, calling it an administrative reimbursement. Which is sound?
- Every administrative label authorizes deduction.
- Renaming the charge does not avoid the express prohibition on passing on or deducting those insurance costs.
- The worker must always bear the premium.
- Only cash collection is prohibited, never salary deduction.
- A contract automatically overrides the statutory prohibition.
Legal references
- RA 8042 Section 6 as amended by RA 10022 Section 5: https://lawphil.net/statutes/repacts/ra2010/ra_10022_2010.html
- RA 11641 Sections 4-6 and 19, DMW functions and succession: https://lawphil.net/statutes/repacts/ra2021/ra_11641_2021.html
Answer this question in flashcards to review your response and continue practicing.