4. Check-off, Assessments, and Agency Fees

B. Rights of Legitimate Labor Organizations

• Check Off, Assessment, and Agency Fees – Labor Code, arts. 250 (n), (o) and 259 (e); DOLE D.O. No. 40-03, Rule XIII, sec. 1
• Collective Bargaining
• Procedure in Bargaining – Labor Code, art. 261
• Duty to bargain collectively – Labor Code, arts. 262-264
• Economic Provisions and Conditions
• Non-Economic Provisions and Conditions
• Mandatory Provisions in a Collective Bargaining Agreement
• Freedom Period
• Union Security Clause

Requisites for a Valid Special Assessment (RMI)

• Authorization by a written Resolution of the majority of all the members at the general membership meeting duly called for that purpose.
• Secretary’s record of the Minutes of the meeting including the list of members present, votes cast, purpose of the special assessments and the recipient of such assessments which must be attested to by the President
• Individual written authorization for checkoff duly signed by the employee concerned to levy such assessments

CHECK OFF, ASSESSMENT FEES, AGENCY FEES

A method of deducting from an employee’s pay at prescribed period, the amounts due the union for fees, fines or assessments.

Agency fees equivalent to union dues may be deducted without individual written authorization from nonmembers in the bargaining unit who accept the benefits of the collective bargaining agreement. Other extraordinary fees remain subject to the applicable written-authorization requirement (Labor Code, Arts. 250(o) and 259(e)).

Nature and Purpose of Check-Off

All unions are authorized to collect reasonable membership fees, union dues, assessments, and fines and other contributions for labor education and research, mutual death and hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings. (Labor Code, Art. 250)

Requirements Regarding Check-Offs

General Rule: No special assessment, attorney’s fees, registration fees, or other extraordinary fees may be checked off from any amount due an employee without an individual written authorization duly signed by the employee (Labor Code, Art. 250[o])

The authorization should specifically state the:

• Beneficiary of the deduction;
• Amount; and
• Purpose

Note: There can be no valid check-off if the majority of the union members had already withdrawn their individual authorization. (Palacol v. Ferrer-Calleja, G.R. No. 85333, 1990)

Exceptions to Written Authorization Requirement

• For mandatory activities provided under the Labor Code; and
• When Non-members of the union avail of the benefits of the CBA:
• Said non-members may be assessed union dues equivalent to that paid by members; and
• Nonmembers within the bargaining unit who accept CBA benefits may be assessed agency fees equivalent to union dues without individual written check-off authorizations (Labor Code, Art. 259(e)); and
• Check-off for union service fees authorized by law (Radio Communications of the Philippines, Inc. v. Sec. of Labor, G.R. No. 77959, 1989)

Agency fees

Dues equivalent to union dues, charged from the non-union members who are benefited by or under the CBA.

Requisites for the Imposition of Agency Fees

• Employee is part of the bargaining unit;
• He is not a member of the union; and
• He partook of the benefits of the CBA (Labor Code, Art. 259[e])

NOTE: No written authorization is required from the non-union employees in order to effect a valid check-off. (Del Pilar Academy v. Del Pilar Academy Employees, G.R. No. 170112, 2008)

Rule on Levy

Article 250, par. (n) of the Labor Code provides that no special assessment or extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members at a general membership meeting duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessment or fees. The record shall be attested to by the president.

Rule on Collection

Article 250, par (o) of the Labor Code provides that other than for mandatory activities under the Code, no special assessments, attorney’s fees, negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction.