The Trade Union Congress of the Philippines is pushing for a new legislation that will exempt from withholding taxes all monetary claims won by workers from disputes resolved by the labor courts.

"Employees unjustly dismissed from work definitely have the right to claim back wages and benefits. Additionally, they are absolutely entitled to receive the monetary awards free from taxes and other government assessments," TUCP spokesperson Alex Aguilar said.

He pointed out that litigation of a labor dispute normally requires considerable amount of time, effort and money on the part of aggrieved workers.

"The undue delay effectively diminishes the real value of whatever financial claims are eventually awarded in favor of workers," Aguilar said. He added that the next Congress should act to extend affected workers material relief and spare all claims that they finally recover from any levy. National Labor Relations Commission statistics show that every month, an average of 3,200 workers are being awarded some P127 million worth of monetary claims against their former employers.

The NLRC is a quasi-judicial body created by the 1974 Labor Code. The commission is tasked to resolve labor disputes via mediation, conciliation and compulsory arbitration. At present, a total of 8,800 labor cases are pending at regional arbitration boards, while another 4,900 cases are pending at the commission level.*

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