Proof or it didn’t happen! New ruling on proof of payment

It is now standard for employers to automatically credit the salaries of their employees to their respective bank accounts. In this digital world, gone are the days when employers handed out cash or checks and required employees to sign physical pay slips. While direct deposit offers convenience, this arrangement may also present certain challenges, particularly in proving the actual payment of employees’ monetary benefits.

- AMICUS CURIAE KLARISSA B. SANTOS

In a recent case involving an airline company, the Supreme Court has shed light on how employers with bank crediting arrangements can effectively prove payment of salaries and benefits.

This case stemmed from the money claims of 49 employees who were dismissed following their participation in an illegal strike. These employees filed a complaint for illegal dismissal and claimed nonpayment of monetary benefits, including their salaries and 13th month pay. The company argued that the Payroll Listing and the 13th Month Pay Payroll Register it submitted were sufficient and constituted substantial evidence of payment of the purported unpaid salaries and 13th month pay.

The Supreme Court, however, disagreed. It stressed that the burden of proving money claims rests on the employer, citing the fact that pertinent personnel records, such as payrolls, are not in the possession of the worker but in the custody and absolute control of the employer. Moreover, the Supreme Court noted that the employer must meet the quantum of proof required in labor cases, which is substantial evidence — that is, such amount of evidence which a reasonable mind might accept as adequate to justify a conclusion.