Question & AnswerQ&A (Act No. 3958)
The main objective of Act No. 3958 is to prohibit forcing, compelling, or obliging any laborer or employee in the Philippine Islands to purchase merchandise, commodities, or personal property from their employer and to prohibit payment of wages by means other than the legal tender currency of the Philippines.
Act No. 3958 mandates that wages must be paid in the legal tender currency of the Philippine Islands. Payment of wages through tokens, tickets, chits, or other objects other than legal tender currency is prohibited.
No, it is unlawful for any employer to force, compel, or oblige any employee to purchase merchandise, commodities, or personal property from the employer either directly or indirectly.
Any contract where the laborer binds himself to accept payment or part of payment in tokens, tickets, or other non-legal tender objects, or any contract whose purpose is to defeat the purposes of this Act, is null and void.
Wages must be paid on the fifteenth or last day of every month, or on Saturday of every week with only a two-day extension.
Nonpayment of wages within the prescribed payment period constitutes a violation of the Act unless the employer can satisfactorily prove that it was impossible to make the payment on time.
No, it is prohibited for employers to negotiate with employees or third parties using chits, tickets, or other objects that represent wages not yet due at the time of issuance.
Yes, it applies to any person, firm, or corporation engaged in any business or enterprise in the Philippine Islands.
While the text does not specify detailed penalties, violation includes illegal wage payment methods and delayed payment beyond the allowed period, which constitute violations subject to enforcement of the law.
The Act took effect upon its approval on December 2, 1932.